THAI, affiliates to iron out joint management plan

THAI, affiliates to iron out joint management plan

Executives of Thai Airways International (THAI) and its two affiliated airlines, Nok Air and THAI Smile, will meet this month to come up with a joint management and strategic plan which the airline says holds the key to its future in the region.

Usanee: Reform is on track

The move is part of aviation business synergy efforts between the three airlines to compete efficiently in the industry.

Flt Lt Montree Jumrieng, THAI’s executive vice-president for corporate strategy and sustainable development, said the idea is to create joint management for the three carriers.

The cooperation would include flight routes and shared resources, such as marketing campaigns, ground services, parking bays, and aircraft maintenance services, he said.

The approach would help ensure the effective management of operation costs, he said.

The carrier’s wholly owned airline THAI Smile would serve passengers flying to both Indochina and domestic destinations. Nok Air, which is 39% owned by THAI, will focus on short-haul domestic flights.

“In the future, the three airlines would form an aviation network,” said Flt Lt Montree, adding the trio are required to deliver transiting passengers to each other.

THAI acting president, Usanee Sangsingkeo, said the State Enterprises Policy Commission has expressed satisfaction about the company’s reform plan to reduce expenses.

The firm’s expenses had declined in line with the target in the first two months of this year, she said. Meeting on Wednesday, the commission, however, urged the company to improve its plan to boost revenue, which had fallen short of the target, she said.

Thanks to a newly acquired system to help manage airplane seat bookings and ticket prices, THAI’s revenue had increased by 1 billion baht over the first two months, Ms Usanee said. Last year’s annual revenue target was 180 billion baht.

“THAI needs to quickly draw up a plan to increase revenue to present at the next committee meeting,” Ms Usanee said.

THAI made a 15 million baht net profit last year after several years of losses running at more than 10 billion baht a year.

Narongchai Wongthanavimok, a Nok Air board member, conceded the budget carrier is struggling with losses from high operating costs.

The airline is set to hire consultancy firms to help work out its reform plan, which is expected to wrap up in three months, said Mr Narongchai, who is also a member of the committee on the strategy and long-term aviation planning for Nok Air.

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