THAI Airways: Mission Possible тАУ Really?

Thoughts prompted by an article by the new President of THAI in yesterdayтАЩs Bangkok Post headed тАЬMission PossibleтАЭ. He admits he has to turn the airline around fast after two years with losses totalling around Bt. 24 billion. Accrued debt is Bt. 250 billion.

He knows he is caught in the middle between the low cost carriers and the three main full-service Gulf carriers. I wonder how much damage their 4 A380s and 8 Boeing 777s in and out of BKK each day is doing to TG тАУ that could be as many as 10,000 passengers in and out.

He plans to increase revenues by 20% in his first year and cut тАЬfatтАЭ by axing unprofitable routes and 5,000 staff. As I see it, his only route to increasing revenues is at the front end of the bus. Yet how can TG can even consider competing with Etihad, Emirates and Qatar with their superior service, flat beds and stand-up bars? TG has flat beds only in its 6 A380s. Business class on its ancient A300s is worse than Premium Economy on other airlines. The A330s, A340s (itтАЩs been trying to offload them for years and been unable to find buyers), 747s and 777s have angled-flat business class seats with a variety of тАЬanglesтАЭ тАУ a near-ancient seat model that dates back more than 16 years and gets TG increasingly poor reviews on flyer websites! Refitting those aircraft means more space per seat up front and thus loss of revenues - unless fares can be squeezed upwards. Low fuel prices will help, but that depends on how much TG hedge.

The government is unlikely to let TG fail. But IтАЩve no idea where its additional revenues will come from!

http://www2.bangkokpost.com/business/ne ... n-possible