Thai Airways has been looking for a new CEO for nearly two years. The previous CEO retired in September 2016 at the age of 60, and since then they’ve had a VP as acting CEO, while the airline tries to find a qualified replacement.
After quite a search the airline has found a new CEO, and he’s an interesting choice. The board has recommended the hiring of 53 year old Sumeth Damrongchaitham. He’s the president of a state-owned Dhanarak Asset Development Co Ltd., and used to be COO of music and entertainment group GMM Grammy PCL, which is the largest entertainment company in Thailand.
Reuters notes that the biggest problem with Thai Airways appointing a new CEO is the lack of independence they’ll have in their role, given that the board is comprised mostly of civil servants and former members of the air force. Like many other state owned airlines, this often presents a conflict of interest for an independent person trying to do what’s in the best interest of the company, especially as it relates to potential layoffs, cutting unprofitable routes, and plane orders.
It’s also surprising that in a search of nearly two years they ended up with someone who has no experience in the airline industry. Obviously a lot of business principles transfer between industries, but the airline industry is a unique beast, as we’ve seen time and again when those without experience in the airline industry take over airlines.
I suspect the board’s selection had more to do with picking someone they’re comfortable with and who they don’t think will be too disruptive, rather than picking someone who can actually turn the airline around.
Thai Airways used to be profitable back in the day, though has been struggling in the past few years. Last year they reported a loss of about 67 million USD. The airline has 82 planes in their fleet (including 11 different plane types), and doesn’t have a single plane on order anymore.
The airline lacks direction, and it doesn’t seem like they have a cohesive route strategy. Thailand has great geography (especially when it comes to connecting Europe and Australia), though for whatever reason I rarely see Thai offering competitive fares in any cabin between Europe and Australia, for example (well, unless you’re redeeming Star Alliance miles). 😉
I’ll be curious to see what the new CEO does. Hopefully he can help put the airline on a path to profitability and give them an actual direction, though even if he wanted to do that, who knows what the board will allow. Like I said, it’s interesting to choose a non-industry person for the role. Then again, Malaysia Airlines appointed a lifelong airline person as CEO in 2015, and he ended up leaving just a year later to go work at Emirates.
If nothing else, I imagine this new CEO will throw some pretty cool parties thanks to his connections in the entertainment industry…
I don't agree with your comments re fares between Australia and Europe. THAI routinely have some of the best fares in the market on the kangaroo route.
Sigh. I like how another poster called TG well-intentioned. Incredibly inconsistent and probably won't get any less so with this move. Still, being based in HKG I fly them often and do really enjoy their A350 (787 less so), the Thai hospitality and little details like an orchid waiting at my seat just make me smile. Lucky mentioned the lack of good fares from Australia - Europe, which I have no experience of, but they...
Sigh. I like how another poster called TG well-intentioned. Incredibly inconsistent and probably won't get any less so with this move. Still, being based in HKG I fly them often and do really enjoy their A350 (787 less so), the Thai hospitality and little details like an orchid waiting at my seat just make me smile. Lucky mentioned the lack of good fares from Australia - Europe, which I have no experience of, but they have EXCELLENT fares from Asia - Australia, especially at peak periods like Chinese New Year. The last few years I've visited home at CNY for less than AU$2,000 (under HKD12,000) business class, while CX, QF, SQ etc etc have been well over AU$5,000 (HKD30,000 and up).
I flew on a Thai Airways 777-300 last week from KUL-BKK wonderful flight, and great on board service.
Then he would be Thai's Tony Fernandes ?Tony worked at Warner Music before establish AAsia
Unrelated but good fares on QF9 and also can be even better is terminate in Perth / go return instead of one way
Thai has never had a clear customer-focused CEO but rather it is the culture of hospitality that attracts people. Their aircraft and their general (maintenance) management are the disaster for this well-intentioned airline.
Alas, with a Government of Generals, this is not a priority as tourism will exist long after a non-profitable airline disappears ...
Making Thai great again?
The entire world seems to be taking leave of its senses. It started in the US, an entertainment clown as the CEO.
It can be expected that even more so-called celebrities will be holding out their hands for free tickets/upgrades/all manner of privileges, now that one of their own is the boss.
Thai is beyond turnaround and can't be saved unless the next govt decides to continue to foot the bill in perpetuity; already their golden share is virtually worthless.
Shambolic, directionless airline, a shadow of its former self.
I don't believe profitability is a priority for Thai Airways, so it doesn't really matter who's running the show.