Connect with us

Opinion

Saving Thai Airways

Published

 on 

PHOTO: The pleasant smile and wai won’t fill aircraft seats anymore

Whilst it’s always a generally pleasant experience flying Thai Airways, the airline, in a business sense, is a basket case racking up nearly a decade of losses, first under the Yingluck Shinawatra Government and then the military government of the NCPO.

Most people in aviation circles agree on the main challenges for the national carrier.

• Entrenched nepotism and cronyism
• Top heavy management
• Contracts for older staff which do not reflect aviation business realities in 2019
• Uncompetitive pricing

So do what QANTAS did in Australia in 2003.

QANTAS was Australia’s legacy airline which had similar long-standing contracts and Union issues that made it difficult for the national carrier to compete in the modern aviation business. It battled for decades with the staff, all on cushy contracts, and the Unions were resistant to change as well.

So they started JetStar, a completely separate company headquartered in Melbourne, but under the wider QANTAS banner. It would take over the ‘leisure’ routes and compete as a low-cost carrier. As QANTAS slowly moved routes over to its cheaper subsidiary the parent airline had a much better argument to pay-out the older, uncompetitive contracts and lay-off the ‘old pot boilers’.

JetStar was not a glamorous airline and lacked the reputation and brand-love of the ‘flying kangaroo’ but, as a business strategy, was a winner for QANTAS and gave them options to modernise the national airline business. The CEO, Alan Joyce, came through Aer Lingus in Ireland then the failing Ansett Airlines in Australia to completely turn Australia’s national carrier upside-down. The strategy worked.

The model has been repeated by other national airlines.

Thai Airways sort of tried the same strategy with Thai Smile in 2012. The offshoot of the parent Thai Airways International, would fly leisure routes for the national carrier but it was still owned entirely by Thai Airways and wasn’t set up as a separate entity so was subject to much of the same ‘handbrakes’ that was holding back Thai Airways from competition in the modern aviation market.

Brand Thai Airways is starting to look a bit tired. The Thai smile, orchids, pleasant staff wai-ing to the camera is all a bit naff when most customers in 2019 are looking for a safe, efficient, on-time airline, at a competitive price. Let’s face it, the seating is much the same, give or take, in just about any plane now. Unless you have the deeper pockets and can afford to sit closer to the front of the plane, you’re in cattle class whether you’re on Thai Airways, Air Asia or RyanAir. A Boeing 737 or Airbus A320 is much the same aeroplane no matter who is flying it.

So what does Thai Airways have to offer customers these days that they won’t get on the many alternatives airlines flying on the same routes? Nice uniforms? A Thai stir-fry included in your airfare? (I’m battling to think of anything else…)

At the same time their website , whilst much improved in the past 12 months, is still a bit ‘clumsy’ compared to other airlines’, the fleet is starting to look a bit ‘tired’, the eight years of loss after loss is starting to noticeably weigh on the airline’s staff, and in many cases the airfares are simply too expensive.

Unless you’re a huge Thai Airways fanboy or fangirl, there are fewer reasons every year to keep flying Thailand’s national airline.

Thailand’s surging tourist industry, which despite a few blips this year will continue to grow, has provided a huge opportunity for Thai Airways to thrive and grow. Instead the airline’s management have squandered an enormous opportunity. Whilst calling for patience as they make (almost zero) changes, many other airlines have jumped into their flying space with newer aircraft, better promotions, cheaper flights and a better business plan.

If Thai Airways was a private company they would have been out of business a decade ago. Instead they keep coming back to the Thai government with their hat out for contributions to bail them out of quarter after quarter of losses.

The airline’s main backer, the Thai government, provides a massive disincentive for the airline to clean up the internal mess and modernise. Where’s the urgency to make the necessary changes when the government will always end up bailing them out? The airline has simply weaponised ‘saving face’ – the national carrier simply CAN’T fail.

But maybe the view of Thai Airways as a potential profitable business is old-fashioned and the costs to the Thai taxpayer should be seen as an ‘investment’ into the country’s growing tourist industry. Middle Eastern airlines are operated in this way where they make massive losses but provide excellent service on modern aircraft dragging tourists through and to their airports and destinations.

Now Thai Airways is asking for the Thai government to bankroll the purchase of new aircraft for its fleet. That the Thai Government seems in no rush to write out any more cheques to Thai Airways is a good indication that some hard decisions now need to be made.

 

Get more from The Thaiger

Join the conversation and have your say on Thailand news published on The Thaiger.

Thaiger Talk is our new Thaiger Community where you can join the discussion on everything happening in Thailand right now.

Please note that articles are not posted to the forum instantly and can take up to 20 min before being visible. Click for more information and the Thaiger Talk Guidelines.

Tim Newton has lived in Thailand since 2011. An Australian, he has worked in the media, principally radio and TV, for 42 years. He has won the Deutsche Welle Award for best radio talk program (public radio Australia), presented over 11,000 radio news bulletins, 3,950 in Thailand alone, hosted 1050 daily TV news programs and produced 2,100 videos, TV commercials and documentaries. He also reported for CNN, Deutsche Welle TV, CBC, Australia's ABC TV and Australian radio during the 2018 Cave Rescue and other major stories in Thailand.

Follow Thaiger by email:

Politics36 mins ago

Exiled Sri Lanka President warned to stay in his hotel in Bangkok

World37 mins ago

UPDATE: Salman Rushdie on ventilator, details on stabber emerge

Thailand2 hours ago

Campaign to get international training for Thai teen declared record sprinter

Sponsored2 days ago

BKFC THAILAND 3: Moment of truth set for September 3

Crime2 hours ago

Royal birthdays bring over 100,000 royal prison pardons

Video2 hours ago

The Voice Behind the World’s Top Brands ft. Krit Tone Sukawat | Thaiger Podcast Ep.2

Press Room3 hours ago

Thailand as your next destination for Motorcycle Adventure post-COVID

Join the conversation on the Thaiger Talk forums today!
Crime3 hours ago

Singaporean and Thai swindler couple arrested in Malaysia

Crime13 hours ago

Author Salman Rushdie stabbed at New York lecture

Transport18 hours ago

Daily trains begin between Malaysian border and Bangkok

Coronavirus (Covid-19)20 hours ago

Virologist predicts most of Thailand will have had Covid by 2023

Transport20 hours ago

Bangkok gets 20 new electric buses next week

Crime21 hours ago

Armed robber escapes with gold worth 800,000 baht in Thailand

This is Thailand22 hours ago

Similarity of Mothers Around the World | Thai Mother’s Day 2022

Crime22 hours ago

Foreigner faces prison for Parrotfishing in Thailand

Bangkok23 hours ago

Woman escapes death after car hit by fallen debris in Bangkok

Thailand11 months ago

Morning Top Stories Thailand | Police to end protests, Human Trafficking | September 14

Thailand1 year ago

Thailand News Today | Thai Airways in rehab, All go for Songkran | March 4

Tourism1 year ago

Phuket’s nightlife. Yes, bars and clubs are still open | VIDEO

Phuket1 year ago

Thailand News Today | Covid passport talks, Thai Airways heads to court | March 2

Tourism1 year ago

Phuket Thai food treats you need to try | VIDEO

Thailand1 year ago

Thailand News Today | Bars, pubs and restaurants ‘sort of’ back to normal | Feb 23

Tourism1 year ago

In search of Cat & Dog Cafés in Phuket Town | VIDEO

Thailand2 years ago

Thailand News Today | Gambling crackdown, Seafood market to reopen, Vlogger challenge | Jan 21

Thailand2 years ago

Thailand News Today | Covid testing for visas, Business impact, Vaccine approval | January 19

Thailand2 years ago

Thailand News Today | Weekend Bangkok bombs, Thailand fires, Covid update | January 18

Thailand2 years ago

Thailand News Today | Stray car on runway, Indonesian quake, 300 baht tourist fee | January 15

Thailand2 years ago

Thailand News Today | Governor off respirator, sex-trafficking arrest, condo prices falling | January 14

Thailand2 years ago

Thailand News Today | Chinese vaccine, Thailand ‘drug hub’, Covid update | January 13

Thailand2 years ago

Thailand News Today | Bangkok may ease restrictions, Phuket bar curfew, Vaccine roll out | January 12

Thailand2 years ago

Thailand News Today | Covid latest, Cockfights closed down, Bryde’s Whale beached | January 11

Trending