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THAI to lease, sell aircraft to turnaround after big losses in 1H


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On 8/14/2019 at 4:37 PM, mike324 said:

For the amount of tourists that has been arriving in the past decade yet they can't turn a profit.... truly incompetent. Its not as if THAI airway fares are overprice, if you buy it outside of Thailand THAI prices are competitive, this is the same for any airlines (lets not talk about how much it cost to fly THAI from Thailand to another destination).

They made a profit up to about 2014. I wonder why?

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On 8/14/2019 at 4:01 PM, Wiggy said:

And of course, this isn’t part of the normal operation of an airline is it? What a ridiculous statement. So does this mean that in order to make a profit the airline shouldn’t maintain its aircraft? Scary. Lol. 

Perhaps these are aircraft grounded because they are overdue maintenance procedures, which they cannot afford to carry out?

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12 hours ago, JAG said:

Perhaps these are aircraft grounded because they are overdue maintenance procedures, which they cannot afford to carry out?

Could well be. 12 simultaneously parked aircraft seems a lot to me.

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Just a relevant example 'at the side', as it concerns the same kind of Thai 'decision makers' ...of the same chinese origin.

Some time ago, I was interested, for private stuff, to rent a couple of empty 'shop units' where we stay. The (Thai-)Chinese here have being building hundreds of those, nearly all empty, ...and unattended. The monthly rent for these in the neighbourhood was 12,000. I asked several owners, and got prices from 15 to 18,000. When asked about the reason for the important increase, the answer was every time: yes, you know, we haven't rented it out for 'x' years now, and we need to compensate for our losses... Also those buildings were in a sad state: not a lick of paint since 'finished', mouldy walls inside, leaking roofs, blocked doors and bursting windows...

So, what's my story? That the same, politically appointed, (Thai-)Chinese who are 'running' THAI (whether from 'elites' or military/police), can't be supposed to care any better about an airline's assets as what theydo with their own's...

...And no chance at all this 'national carrier', will allow non-Thai international experts to set it straight, ...as the first 'must' items would be: TOTAL control over finances and organisation, FULL 'hire-and-fire' rights, and more of the same authorithy over locals: can't happen with Thailand's pride!

Well then, let it go under miserably, when that's what they want, they own it after all, BUT alert all potential THAI passengers that, outside of the presently very poor service on the ground AND on board, ...the means might also fail to service and maintain the airplanes as they should be, whatever the overly expensive ticket prices might let expect! 

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On 8/16/2019 at 11:54 AM, trainman34014 said:

There are only two classes on Thai Airways.....Cattle Class and 'Do you know who i am class' !

Well, I heard it was

  1. Cattle Class
  2. Do you know who my father is Class
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On 8/14/2019 at 2:01 PM, trainman34014 said:

Now the biggest loss making Airline in Aviation History.  

thats untrue

- there was many others with temporary higher looses.. ex. PanAm, in the last month of life 1991

-there was others w simmilar looses due to partly external factors AA,UA, Malysian,and others

first two went true Bancrupt procedure Chapter 11, last take over by state

-All Asian Airlines are profitable, far away from truth,Airinida a loos making giant,Malaysian and others

 

To keep Airlines profitable, over the long run, is a very dificult task, high fixed and variable costs,external factors,Reputation,competition of low coast carriers,Oil and security costs ( sep the last years, a hudge hombase with intensive cost for labour , and so on

 

Before speculating the factors of the looses,would be better to read the balance sheet and yearly report of thai to find out.

 

Yes there are managment failures, but that not explain all and the whole situation.

 

So far ,Thai Air , is better than its reputation here in the Forum

 

In case of a failure of the airlines, a bailout ( goverment) or a possible invcrease in share capital is highly likely

 

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The Thai government will not let the flagship airline for the country go bust, They will do all it takes to bail them out.

A country without its own airline is a big loss of face.

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On 8/16/2019 at 8:17 PM, JAG said:

Perhaps these are aircraft grounded because they are overdue maintenance procedures, which they cannot afford to carry out?

When I used to be a line manager in the RAF part of my job was to look at all the aircraft flying hours for any servicing due soon, any faults that were carried and compare that with the next few days flight plans.

 

My boss would read the schedule and either pull forward or extend the servicing. That was back in 1979/80.

 

Thai obviously has no idea of that sort of planning.

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21 hours ago, bangrak said:

Well then, let it go under miserably, when that's what they want, they own it after all, BUT alert all potential THAI passengers that, outside of the presently very poor service on the ground AND on board, ...the means might also fail to service and maintain the airplanes as they should be, whatever the overly expensive ticket prices might let expect! 

That presumably would lead to the Airline being prevented from flying international routes - didn't something similar happen to Garuda some years ago?

 

Now that would involve major loss of face!

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Easy way to get immediate cash, but will be one time shot to their cash holdings. But leases add more to annual operating costs yearly. And surely doesn't fix the fundamental problem that total annual costs exceed total annual revenues. Thai Air will never turn a profit.

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