Thai loses again money

BANGKOK - Thailand national carrier lost money in 2013 after making a year earlier a profit of US$ 219 million. In 2011, the carrier had already posted a loss of US$335 million for 2011. Thai should have suffered in 2013 an approximate net loss of US$ 400 million –the equivalent of THB 13 billion. On Friday, the carrier announced its results and at the same time revealed that the airline’s chairman Ampon Kittiampon transmitted his resignation to the board of directors.

Mr. Kittiampon declared that his resignation had nothing to do with the airline’s losses and current political turmoil. Trade Unions of Thai Airways had asked many times for the chairman to resign in the past. Mr. Kittiampon served two terms as Thai Airways International chairman but will continue to seat on the board of directors of the airline.

According to the Bangkok Post, from the company's performance of 12 to 13 billion baht loss, three billion were due to management problems while five to six billion were due to foreign exchange losses. Compared to 2012, the average value of the Baht versus the US dollar has been down by 7%. Another five billion baht of the losses were attributed to impaired assets or a decrease in the value of assets and other causes, the source said.

Thailand political troubles are impacting since the end of 2013 which is depressing a certain number of markets, especially in Asia. China, Japan, Korea but also Singapore are among the markets currently affected by Bangkok’s turmoil.

The airline expects that it will continue to lose money in 2014. This is also due to the fact that Thai Airways will take delivery of 13 new aircraft, which always occur higher operation costs at start.
The board of directors appointed officially vice-chairman and air force commander ACM Prachin Chantong to replace Mr Ampon as chairman, effective from March 10, the statement said.

Meanwhile, Thai Airways International has decided to suspend its Bangkok-Hat Yai service from March 30 because of heavy competition from low cost carriers. The frequencies will be transferred to Thai Airways subsidiary Thai Smile. The carrier will offer up to five daily flights with an Airbus A320.

Sourced: TravelDailyNews