Thai Airways Reform To Test Business Credentials Of Military Government

[cavanami]

Thai Airways reform to test business credentials of military government

 

http://finance.yahoo.com/news/thai-airways-reform-test-business-credentials-military-government-211354354--finance.html

 

It was the last military coup that screwed Thai Air for the next ten years...as they made a ten year contract for fuel when the price of the fuel was the highest in history! Has everyone forgotten that

little mishap

They are military, not business people!!!

Seems they never learn...maybe time to buy some submarines and aircraft carriers....

 

Thailand's new military rulers have singled out the country's troubled flagship airline as the first state enterprise to undergo reform, an exercise that will test their unproven business acumen and ability to separate politics from business.

 

Thai Airways International Pcl has racked up four quarters of losses due to declining ticket sales, high operating costs and ruthless competition. Boardroom fights have also led to slow decision-making and a lack of coherent strategy, sources in the company say.

 

The junta led by General Prayuth Chan-ocha has told the chief of the Royal Thai Air Force to fix the airline. Air Chief Marshall Prajin Juntong, who also oversees economic matters for the military government, said on Friday a detailed restructuring plan aimed at returning the carrier to profit will be considered by the board at a meeting on July 24.

 

The success or failure of Prajin, who has little practical experience in running a business, will have wider implications for the government. The junta needs to assure foreign investors of its ability to manage the economy and that it is not out to merely weed out allies of previous prime ministers...

[baa99]

The Generals and their families have business interests.

[Flashermac]

Strange they don't mention that Thai had a director who was turning things around ... and the Pheu Thai government sacked him and put in one of their cronies.

[cavanami]

Two more years for the current fuel contract, that Pheu Thai had nothing to do with.

 

Try to operate a business when you are locked in to a fuel contract that is killing the business while all your

competition doesn't have that burden.

 

Biz 101...can't blame Pheu Thai this this one! try again...

[Flashermac]

So where did I blame them? I simply stated a fact - that Pheu Thai removed a man who was doing a good job and put in one of their own people. Mea culpa ... I see they did mention it.

 

"Piyasvasti, sacked by Yingluck's government in June 2012, took the helm at the airline in October 2009. The former energy minister was credited for turning around the loss-making carrier, which swung back to a profit in 2009-2012."

[My Penis is hungry]

Thai army runs one of the most profitable TV Stations in Thailand, and largest, Radio stations etc, the Army owns a number of commercial interests,

 

They sold out the bank shares prior to the previous coup I seem to remember, so TMB isn't Army anymore

[Flashermac]

Thailand since the 1950s at least has been dominated by three groups - the wealthiest business families, the political bosses, and the military. Sometimes there is even a connection between them, e.g. Chaiyasit Shinawatra, whom Thaksin made commander of the Thai Army when he was PM. Democracy has a tough time competing with such powerful influences.

[King Kung]

^ Very astute. Take the next logical step. Business, politics and military are each kept off balance intentionally (and unable to provide stability or longevity) by a higher power -- ensuring there is never, ever, any question who is in charge.

 

I find it bizarre that generals are running many of Thailand's most important industries. Hospitals, transportation, land management, banks ... as others have noted, these are not businessmen -- and their track record often reflects that. A patronage society yields strange bedfellows.