Thai Airways Unveils Transformation Plan

Thai Airways International has unveiled details of its much needed Transformation Plan.

The plan includes a strategic framework covering six major areas aimed at ensuring future stability and sustainability for the airline.

Thai Airways has incurred losses for five consecutive quarters and for the first nine months of 2014, ending September 2014, 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 what is called the "Government Super Board", which gave its agreement to proceed with the plan on Monday.

Thai’s Transformation Roadmap is made up of three stages.

The first stage is designed to mitigate losses through cutting routes that are losing money, while enhancing efforts to boost revenue on routes which the airline is doing well on to 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 resources while enhancing the airline’s ability to earn revenue and improve the ability to control cost. The airline also acknowledged that there is a need to improve 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 these changes to ensure long-term sustainable profitability.

To put it simply, 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.