Thai Airways mulls out options to get rid of its president

BANGKOK- When the government nominated Sorajak Kasemsuvan as Thai Airways International new President, Thai journalists remained rather skeptical. The new President of Thailand’s national carrier has the reputation of being a well-mannered, intelligent personality. But also a weak character, very unlikely to take a quick decision. Thai Airwas Union said Mr Sorajak's performance has made Thai Airways International board unhappy because he lacks adequate leadership skills.
Two weeks ago, THAI board vice-chairman Areepong Bhoocha-oom conceded Wednesday that the airline's turnover in the first half of this year was lower than expected despite a rise of 20% in tourist numbers to the country.
Thai lost THB 8.4 billion, wiping out the good results of the first quarter. The loss is attributed to the purchase of new aircraft, depreciation costs for old aircraft, currency exchange movements and poor cargo service performance.
"The board is quite disappointed with Mr Sorajak's performance," Mr Bhoocha-oom declared to Thai media. Thai Airways International could however succeed to achieve a profit for the rest of the year as the carrier will take delivery of new aircraft but also as Thai Airways plans to launch new destinations.
The board will then examine the THAI president's job performance after 10 months in the position but THAI board chairman Ampon Kittiampon already qualified some reports telling that he tries to remove Thai President as unfunded. Mr Ampon declared to the Bangkok Post that Mr Sorajak's work assessment will be transparent and any decision will not rest with him alone.
A potential change in management could only be detrimental to the airline which already struggles to have a real vision and generally run its strategy only to counterbalance steps taken by the competition.  Thai Airways is fighting against intense competition not only from other Asian carriers but also Gulf airlines as well as low cost carriers on shorter routes.
Thai Airways is still expected to make a profit of THB 4 billion, down from earlier estimates of a profit of THB six billion for the entire financial year.

Sourced: TravelDailyNews