Thai Airways Wants Your Ideas for Cutting Costs
Joe Cortez August 20, 2019
Have you ever held an idea that could improve an airline’s service plan? Thai Airways wants flyers to submit them to help the carrier become profitable again. Under its #SaveTG campaign, the company is soliciting ideas from flyers around the world to guide them into their next business phase.
Thai Airways is on some hard times, but executives believe they can turn the carrier around with the public’s help. In a press release, the flag carrier announced a turnaround plan that includes asking for frequent flyers to submit their original ideas.
According to the press release, Thai Airways is struggling financially due to quite a lot of factors including “a strong baht, US-China trade war, sluggish global economic, and closure of Pakistani airspace. As a result, tourists numbers declined and customer purchasing power reduced, in addition to delayed engine repairs by the manufacturer, even though the Company implemented cost control measures until the total cost was lower than the previous year, but the afore-mentioned external factors affected the corporate group to incur an increased net loss in the last quarter similar to other airlines.”
Long story short, things are looking grim. But, the company has a six-part plan to improve. Part 1 is SaveTG Co-Creation, a plan to crowdsource “a cost-control strategy that does not hinder THAI’s quality of service. Flyers who have ideas to help Thai Airways return to profitability are encouraged to e-mail the company at [email protected]. The airline is also starting a social media campaign with the hashtag #SaveTG.
“We believe that THAI will return to its position as one of the top world class airlines although not as soon as we hoped,” Sumeth Damrongchaitham, president of Thai Airways, said in the release. “This all depends on the support of Thai passengers who still love Thai, who can help by flying with our airline, use our services and by making recommendations under the #SaveTG concept.”
Other strategies to return to profitability outlined by Thai leadership includes reducing food waste from airplanes, adding flights to Sendai, Japan, increasing customer service via digital media and expanding business alliances throughout Thailand and the Asian region. In addition, the airline plans on adding Thai Smile as a Star Alliance connecting partner by the end of 2019.
[Featured Image: Thai Airways]
I know from an insider that half of the passenger load is flying on free tickets (government officials, relatives of employees etc.) - Thai Airways has been very generous with handing out free tickets to family members of employees, their relatives and friends and whoever is important in Thailand's society (actors, pop stars, government officials etc. etc.). They usually tend to get seats in the premium cabins as well. Charge them for their tickets and the revenue is going to improve sharply....
Don't give away F and J to Generals and Hiso Thais. Don't use Jumbo Jets on domestic routes. Rationalize the fleet instead of buying every aircraft type.
There is not much to cut - Thai experience is pretty bare-bones as it is. Old and poorly maintained cabins, uncomfortable outdated seats, unhelpful and unpleasant ground/check in agents, run down lounges, mediocre food and high prices. They are losing customers to other airlines, not due to tourism downturn. Personally, I'll take AirAsia over Thai anytime flying in economy. I might pick Thai in business, if there is a lowball cheapo fare, but even so they are nowhere near the top of the list. Continuing to cut costs will result in them losing more customers, and nothing else.