THAI’s Transformation Plan has been agreed to by Government Super Board

BANGKOK - The Transformation Plan of Thai Airways International Public Company Limited (THAI) has been agreed to by the Government Super Board. The Transformation Plan includes strategic framework covering six major areas aimed at ensuring stability and sustainability for THAI and bringing pride back to THAI as the national carrier.

Mr. Charamporn Jotikasthira, THAI President, said that THAI has drafted a transformation plan as the Company incurred losses for five consecutive quarters and for the first nine months of 2014 ending September 2014 THAI incurred a loss of 9,210.73 million baht. THAI’s Board of Directors approved the draft plan on 16 January 2015 and THAI proposed the plan to the Government Super Board, which stated agreement on 26 January 2015 to proceed with the plan.

The essence of the Transformation Plan encompasses identifying problems being faced by the Company, developing strategic initiatives, establishing timeframe for achieving milestones, establishing key performance indicators, and enhancing cost control. There are 3 stages composing THAI’s Transformation Roadmap – the first stage is designed mitigate losses through cutting routes that have been consistently loss making and are not able to be turned around while enhancing effort to boost revenue on routes which THAI is currently doing well or destinations that have strong growth potential. The second stage addresses the issue of building THAI’s competitiveness in the areas of product, service, and human resource while enhancing the Company’s ability to earn revenue and improving the ability to control cost. Most importantly is the need to improve its service standards and render services that meet the needs of various customer groups. The third stage will be to grow THAI’s business on the back of new organization strengths ensuring long-term sustainable profitability. THAI will remain a full service airline with the vision of being the First Choice Airline with Touches of THAI service.

THAI’s Transformation Plan consists of the following 6 strategies:
1. Network Strategy
2. Fleet Strategy
3. Commercial Strategy – to increase capability in making more profits
4. Operations & Cost Strategy – to improve capability and control standards, as well as control costs
5. Organization Strategy
6. Portfolio Strategy – to organize business units systematically and determine core business and non-core business

sourced:traveldailynews.asia