Thai Airways not at risk of closing down

THAI Airbus A380

Thai Airways is not at risk of closing down and recent news reports about the airline’s situation were “misinterpreted”, the stressed-out airline’s president pointed out on Wednesday. The statement appeared to directly contradict remarks he made to high-ranking THAI staff in a speech on Tuesday.

He said the remarks were to encourage staffs to make an serious effort to ensure the struggling airline’s rehabilitation plan succeeds, and were “misinterpreted” as meaning the airline faced possible closure.

The president disregarded the possibility of the flag carrier closing down, but admitted battling stiff competition, especially from low-cost carriers.

With competitions in the industry becoming fiercer, he said he had stressed the importance and urgent need to overcome obstacles facing the airline.

THAI staffs were urged to heed how competitive the airline industry has become in all areas, including low-cost carrier competition, air fare promotions, and “cut-throat” route competition in some markets.

“THAI confirms it is perfectly capable to perform exceptionally amid tough airline competition,” he added.

“In an era where customers have so many offers on hand amid fierce airline competition, employees were asked to join forces and work to beat the competition for the inevitable achievement of improved operational results,” according to the statement.

He also dismissed media reports that the airline planned to stop flying to four destinations in the ASEAN region, saying THAI has no plan to drop any routes.

THAI Airways is a state enterprise under the Transport Ministry. The airline posted a loss of 6.44 billion Baht during the first half of this year, accumulating to a loss of 280 billion Baht.

Source: Bangkok Post