THAI Press Release

 

THAI Wins Vote For Best Wine in Business Class, Says Business Traveller’s Survey 

The prestigious award encourages THAI to continue its efforts in maximizing customers’ satisfaction and offering the highest standard of services, says THAI’s President 

Thai Airways International has recently been voted top for serving the best wine on board its Executive Class and was awarded 2001 Best Overall Business Traveller’s Cellars in the Sky Award, by Business Traveller’s Magazine. THAI was also voted top for Best White Wine and ranked among the top five Asia Pacific airlines for serving the best champagne on board. The result of the survey was published in Business Traveller’s Asia/Pacific Magazine July 2001 issue. 

The ‘Business Traveller’s Annual Survey of the Best Wines Served’ has been organized for six consecutive years. Over 40 leading international airlines worldwide joined the competition this year. Each airline must present two types of red and white wine, and one type of champagne, all of which must be available on the current on-board wine list. They were sent to committee members and wine testing experts to test and vote. Points were awarded on a scale of 1 to 20, and were added and averaged to rank all airlines for the Best Cellars in the Sky Awards. 

“THAI is proud to receive this prestigious world award. It is THAI’s priority to select the best product and provides the highest standard of service to customers. The award demonstrates our determination to do so and encourages THAI to continue our efforts to maximize customers’ satisfaction, positioning THAI among one of the world’s leading carriers“ said Bhisit Kuslasayanon, THAI’s President.  

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THAI Announces Results of Board of Directors' Meeting

Bangkok, 25 July 2001 --- Thai Airways International Public Company Limited held a Board of Directors' Meeting, chaired by Mr. Somkid Jatusripitak, Finance Minister, Mr. Pracha Maleenont, Transport and Communications Deputy Minister, and Dr. Chai-anan Samudavanija, THAI's Chairman, with the following results:

1. Strategic Plan

The Board of Directors has unanimously agreed and approved the strategic plan for THAI submitted by the Management. The plan focuses on prioritizing main objectives in positioning THAI among leading carriers of this region within the next five years. The Government has ensured a full support towards the plan. The Finance Minister and Transport and Communications Deputy Minister gave many valuable recommendations on this issue and have suggested ways in which investors should be informed.

The Board of Directors has also approved the appointment of a Working Group to plan the restructuring of some parts of THAI into Business Units. The Working Group comprises of the following:

Chairman:
Mr. Srisook Chandrangsu - Vice Chairman of THAI's Board of Directors

Members:
Mr. Somchai Boonnamsiri - Director
M.L. Subhasidhi Jumbala - Director
M.R. Supadis Diskul - THAI's Vice President, Special Project
Mr. Kaweepan Roungpaka - THAI's Vice President, Finance

The time frame to submit the Working Group's plan as well as the Strategic Plan is within one month. The Working Group remains a part of THAI but has been set up to allow greater operational flexibility.

2. Agreement between THAI and the Ministry of Finance to Set Up Work Performance Evaluation Indicators

The Board of Directors has approved the Work Performance Evaluation Indicators agreed between THAI and the Ministry of Finance with assistance from TRIS, a consultant to the Finance Ministry.

Following Cabinet approval dated 20 June 1995 of the application of state enterprise's work performance evaluation indicators to further enhance the operational efficiency, the supervision of development and progress of state enterprise shifts from operational control to evaluation process. The Ministry of Finance has also suggested the inclusion of incentive programs to reflect work performance starting from 2001 financial year. 

Six main parameters have been established to evaluate the company's performance namely financial efficiency, physical efficiency, service efficiency, quality of the state enterprise plan, and management and supervision quality. The goals will be determined by THAI with three variables:

a. Indicators - established to:
- evaluate major performance
- reflect objectives and targets of the company
- be easily understood
- be easily followed up and arranged
- be under close control and supervision of the Management.

b. Weight which has been assigned according to the importance of work performance. The total will be equal to 100 per cent.

c. Target. This is divided into five distinct levels according to its quality

As for the incentive programs, Thai Airways International is a state enterprise, which has been categorized to compete with private companies. More flexibility will be granted to various work units including storage, budget, finance and account, organization, management of personnel, management of salary, employment fees and compensation, setting up of subsidiary companies and annual bonus for members of the Board.

3. Appointment of THAI Management

The Board of Directors has approved the appointment of THAI management to fill in the current posts, which are vacant and to replace those who will be retiring this September as follows:

  • Captain Udomchai Nandamanop, Vice President, Flight Operations, was appointed Executive Vice President, Operations
  • Mr. Veravat Chotiros, Vice President, Industry Relations and Commercial Support and Acting Senior Vice President, Planning and Government Relations, was appointed Senior Vice President, Corporate Planning and Government Relations 
  • Mr. Prasert Khlongwathanakith, Vice President, Subsidiaries and Investment, was appointed Vice President, Special Projects
  • Captain Veerachai Sripha, Deputy Vice President, Aviation Personnel Development was appointed Vice President, Aviation Personnel Development
  • Mr. Kawin Asvarchatroj, Acting Vice President Cargo and Mail Department, was appointed Vice President, Cargo and Mail Department 
  • Mr. Doosdee Smuthkochorn, Director, Office of the Vice President Special Projects and Acting Vice President Government Relations, was appointed Vice President Government Relations
  • Captain Apinant Sumanaseranee, Deputy Vice President, Flight Operations, was appointed Vice President, Flight Operations 
  • Mr. Santi Purivetkunakorn, Director, Traffic and Sales Information Services, was appointed Vice President, Accounting 
  • Mr. Tongnoi Thongcheu, Regional Director Europe and Africa, was appointed Vice President, Industry Relations and Commercial Support 
  • Mr. Sathok Vorasarin, Director, Inflight Catering Management, was appointed Vice President, Subsidiaries and Investment

The appointment will take effect as of 1 October 2001 onwards.

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THAI Announces Temporary Suspension of Flights to Colombo 

Bangkok, 24 July 2001 --- Thai Airways International Public Company Limited today announced temporary suspension of flight operations between Bangkok and Colombo following a rebel attack that took place at the main Colombo airport and damaged several aircraft. 

The Colombo Airport was closed following a Notice to Airmen (NOTAM) announcement to all airlines operating to and from Colombo. Today (24 July 2001) THAI flight operations on the route Bangkok-Colombo-Bangkok, flight numbers TG307 and TG308, have been suspended. 

THAI’s flight TG307 is scheduled to depart from Bangkok at 21:45 hours and will arrive in Colombo at 23:59 hours (local time), and TG308 is scheduled to depart from Colombo at 01:40 hours (local time) and arrive in Bangkok at 06:05 hours. 

THAI currently operates four weekly flights from Bangkok to Colombo every Tuesday, Wednesday, Friday and Sunday, utilizing Airbus A300-600 aircraft. 

To check flight schedules and for more information, passengers and the public are advised to contact THAI offices at Tel: (662) 628-2000, 24 hours a day, or access Flight Information for international flights at Tel: (662) 535-2846-7. 

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Results from THAI’s Board of Directors’ Meeting

9 July 2001, Thai Airways International Public Company Limited held its Board of Directors’ Meeting, which was chaired by THAI’s Chairman, Mr. Chai-anan Samudavanija, with the following results:

1. Routenet Alterations & Inflight Equipment Improvement Plans
THAI’s Board of Directors has agreed to postpone the sale of its MD-11 aircraft, until a more appropriate aircraft type may be sought as a replacement in accordance with the upcoming State Enterprise Plan.

This decision was made in accordance with THAI’s Management policies, based on the THAI Board’s directive in order to seek new aircraft seats in Business and Economy Class for the airline’s Boeing 777-200 aircraft. In addition, the directive stated that adjustments be made to inflight equipment on board THAI’s Boeing 747-400 aircraft, while seeking approval for the sale of THAI’s four MD-11 aircraft at some time in the future.

THAI’s Executive Committee, headed by a Vice Chairman of the Executive Committee, proposed that the airline make alterations to its routenet and aircraft utlization plans pertaining to specific flight segments. It was decided that the airline would postpone the sale of its four MD-11 aircraft for the time being, allocating these aircraft to an appropriate route. This decision was based on the results of a meeting held between THAI’s Executive Committee and Management, on Wednesday, 4 July 2001, to study allocation of MD-11 aircraft to an appropriate flight sector, while considering concerns posed by the airline’s pilots, technical engineers, marketing value, and profitability. It was agreed that delaying the sale of the MD-11s would prove more beneficial to the airline than an immediate sale. It was concluded by THAI’s Executive Committee and Management that the sale of THAI’s four MD-11s be postponed until a more appropriate new aircraft type be sought as a replacement, according to the airline’s plan to streamline its aircraft types.

As for the airline’s plans to make adjustments to Business and Economy Class on board THAI’s Boeing 777-200 aircraft, THAI’s Board concluded that alterations be made to the aircraft seats to better accommodate passenger comfort and convenience by adjusting Business Class seats from 8 seats across to 7 seats and adjusting Economy Class from 10 seats across to 9 seats. It was agreed that THAI’s Board would draw up a Strategic Plan for Management and Product Development, to be led by Air Chief Marshal Nopporn Chandawanich who will negotiate with Boeing Commercial Airplane Group, in order that further adjustments be made.

2. Preparations towards THAI’s Privatization Plans
Based on THAI’s plans to further its privatization, the Board of Directors has decided on the following preparations:

2.1 THAI’s Strategic Plan
THAI has proceeded with strategic plans, which will be proposed to THAI’s Board of Directors on 25 July 2001, to be included as part of the airline’s State Enterprise Plan.

2.2 Selection of THAI’s President and Management
Since THAI’s current President will retire in September 2002, THAI’s Board of Directors has approved to proceed with the executive search for the airline’s next president one year in advance, with THAI’s Chairman Mr. Chai-anan Samudavanija to lead the selection process, which will be announced between 10 July – 15 August 2001.

In addition, THAI’s Board of Directors has granted approval for the Management Selection Committee to proceed with the selection of candidates to fill positions of THAI Management who will retire at the end of this Thai fiscal year (September 2001) and to fill currently vacant Management positions. The Management Selection Committee will be led by Mr. Srisook Chandrangsu, Permanent Secretary, Ministry of
Transport and Communications, and THAI’s First Vice Chairman.

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THAI Royal e-Ticket Available in All Domestic Routes

Starting from 2 July 2001 onwards, passengers traveling on board Thai Airways International flights may enjoy the Royal e-Ticket service available on any of THAI’s 24 domestic routes around Thailand.

THAI offers e-ticketing service on the routes between Bangkok, Chiang Mai, Chiang Rai, Phrae, Phitsanulok, Nan, Mae Sot, Lampang, Phetchabun, Khon Kaen, Nakhon Ratchasima, Nakhon Phanom, Sakon Nakhorn, Ubon Ratchatanee, Buri Ram, Trang, Hat Yai, Nakhon Si Thammarat, Udon Thani, Mae Hong Son, Narathiwat, Phuket, Surat Thani and Krabi. Reservation for e-ticket can be made via THAI’s Reservation Office at Tel: (66-2) 628-2000 or (66-2) 280-0060-89 (24 hours), via THAI’s Ticketing offices, agents or THAI’s web site www.thaiairways.com. 

THAI’s Royal Orchid Plus members traveling on any domestic routes between 11 June - 30 September 2001, will earn 500 bonus miles for their first domestic flight using an e-ticket. Between 1 September – 30 November 2001, ROP members will earn 2,000 bonus miles for their first international flight using an e-ticket. These extra mileage points can be accumulated on top of the regular mileage earned with the current THAI Bonus Miles program. The mileage will be credited to members’ account at the end of the promotion period. 

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THAI Announces Results of Board Meeting 

Bangkok, 27 June 2001 --- Thai Airways International Public Company Limited held a Board of Directors’ Meeting, chaired by Mr. Chai-anan Smuddavanija, THAI’s Chairman, with the following results: 

1. Expansion Plan of THAI’s Catering Services Department 
The Board of Directors has approved the hiring contract with P. Construction and Material Company Limited to begin the construction to expand THAI’s Catering Services Department production area at Bangkok International Airport. P. Construction and Material Company Limited proposed the lowest construction cost out of all the six tenders; the cost was lower than that estimated by THAI. 

The Catering Services Department is part of THAI’s supporting activities, which has continued to yield the highest revenue to THAI, calculated at 37.3 per cent annually. Currently, the Catering Services Department caters for some 40 customer airlines at Bangkok International Airport including THAI. Its current daily production capacity reaches 42,000 sets of meals, with the market share in Thailand of 64 per cent. The expansion plan has been designed to accommodate the rising demand for inflight meals, which will enable the unit to produce over 47,000 meals per day and maintain its quality service for both THAI and customer airlines. 

THAI’s Catering Services Department has recently been awarded the Prime Minister’s Industry Award 2001 under the Quality Management category. 

2. Hiring Forklifts for THAI Cargo 
The Board of Directors has approved the budget of 230 million Baht under a three-year contract (2002-2005) for THAI Cargo to hire 63 forklifts and drivers to boost its operational efficiency and effectiveness. 

According to company regulations, all functions within the airline are required to review all hiring contracts at least three months prior to expiry date. The current forklift hiring contract of THAI Cargo will expire in February 2002. 

THAI Cargo now serves 56 customer airlines and occupies a total cargo area of 64,000 square meters at Bangkok International Airport, out of which 37,000 square meters were allocated for Warehouse 2 and 27,000 for Warehouse 3. THAI Cargo now offers added services including export cargo, transfer of consolidated cargo to Warehouse 3, and Express Cargo Center. 

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Royal Orchid Plus Celebrates THAI e-Ticket Launch 

Starting on 11 June 2001, Thai Airways International’s Royal Orchid Plus Frequent Flyer Program now offers a promotional period of Bonus Mile Program for members to mark the launch of THAI’s Royal e-Ticket service. 

Mr. Chanchai Singtoroj, THAI’s Vice President, Revenue Planning and Management, said, “THAI is satisfied with the number of customer entries with the Royal e-Ticket service. To add more benefits to this service, THAI’s Royal Orchid Plus has launched a ‘Bonus Miles’ reward program for ROP members, who use THAI’s Royal e-Ticket for their first e-ticketing flight.” 

THAI’s Royal Orchid Plus members traveling on any domestic routes between 11 June - 30 September 2001, will earn 500 bonus miles for their first domestic flight using an e-ticket. Between 1 September – 30 November 2001, ROP members will earn 2,000 bonus miles for their first international flight using an e-ticket. 

These extra mileage points can be accumulated on top of the regular mileage earned with the current THAI Bonus Miles program. The mileage will be credited to members’ account at the end of the promotion period. 

E-Ticketing is an innovative travel service that proves more convenient, efficient, less
time-consuming when purchasing air tickets and safeguarding loss of ticket. E-ticket offers added convenience when changing flights or refunding tickets. 

E-ticket is available when making reservations via THAI’s Reservation Office at Tel: (66-2) 628-2000 or (66-2) 280-0060-89 (24 hours), via THAI’s Ticketing offices, THAI’s travel agents or THAI’s web site www.thaiairways.com

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THAI Holds Customer Service Conference 2001

Thai Airways International Public Company Limited recently held its annual THAI Customer Service Conference 2001, under the theme "Total Commitment for Customer Satisfaction," which was attended by employees responsible for customer service provision and station managers from around the world.

The main goal of the conference was to discuss and discover new ways to continue providing high levels of service to passengers and customers. During the conference, THAI's President Mr. Bhisit Kuslasayanon shared the vision of THAI's Management, formulated as a result of the workshop conducted at THAI and attended by Prime Minister Thaksin Shinawatra on 4 April 2001. THAI's Management concluded nine strategies, to be used as measures to improve the quality and efficiency of work standards.

Three out of the nine strategies pertain to improvements to be made in the area of customer services, which are as follows: 

1. To improve service provision so that customers experience customer satisfaction in all areas, at all times, upon having experienced THAI's services.

2. To improve and increase staff productivity within each departmental function.

3. To utilize e-business opportunities or modern technology to improve the quality of work, based on demand and interaction that occurs between customers, employees, and suppliers.

The airline also has plans to discontinue flights on certain domestic routes that incur a loss, which sectors will revert to operation by private sector airlines. These plans also include better adjusting the aircraft types to the particular flight sector. Plans are also underway to study and restructure the airline into business units, whereby each unit will have its own management measures and standards.

The primary company would establish and implement policies and profit-making incentives and goals for the business unit. Increasing flight frequencies to meet demands of passengers was also discussed, these being flights into Japan and Malaysia, improving flights into the North Pacific, and increasing code share flights in partnership with Star Alliance member carriers.

During the conference, guest speaker and Royal Orchid Plus Gold Member, Mr. Jack Min Intanate, Managing Director of S.V.O.A. Company Limited, made a presentation on "The Management of THAI from the Perspective of a Customer". Based on a survey conducted of the Thai consumer public, Mr. Intanate stated that the majority of passengers are satisfied with THAI's service. Survey results also supported passenger preferences that THAI improve and modernize its aircraft fleet as well as inflight and ground services equipment, in line with consumer demands and the rate of globalization.

Conference workshops were also held, to discuss problem areas and seek solutions. The findings concluded from the THAI Customer Service Conference will be reported to THAI's Management, for implementation in future company policies. 

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THAI Announces Operational Strategy

Bangkok, 14 June 2001 --- Thai Airways International Public Company Limited held a press conference to announce the airline's future plans and operational strategy. The conference was chaired by Mr. Pracha Maleenont, Transport and Communications Deputy Minister, Mr. Chai-anan Samudavanija, THAI's Chairman, Mr. Soonthorn Pokachaipipat, Chairman of THAI's Executive Committee and Mr. Bhisit Kuslasayanon, THAI's President.

Deputy Minister Pracha said he was aware of the dedicated efforts made by all functions within THAI, as well as the Board of Directors and the Management. They have tried their best to fulfil their responsibilities for the best interests of THAI.

It is now a matter of urgency that THAI must speed up the development of the airline's State Enterprise plan in compliance with the policy and guidelines established by the Ministry of Transport and Communications.Deputy Minister Pracha categorized the problems for THAI's Management to take action as follows:

1. Financial
  • To increase Market capital as currently, THAI's market capital was reduced to USD 970 million from USD 1,200 million in 1998

2. Marketing

  • THAI should focus on passenger target groups in accordance with the changing consumer trend and Star Alliance member airlines. THAI should also strive to generate reater revenue by cooperating closely with  the Tourism Authority of Thailand to offer innovative tourism products.

3. Management

  • THAI should look for ways in which the airline may utilize aircraft more efficiently, gain more benefits from being a member of the Star Alliance, and lessen government regulations in order to sharpen THAI's competitive edge.

4. To establish guidelines and plans for investment at Suwannabhumi Airport

5. Privatization guidelines

Deputy Minister Pracha also said that, "Thai Airways International today should move away from the old ways of thinking as THAI is facing a weakening financial situationwhen compared to other airlines in  this region. The market capital has decreased, the debt to equity ratio has increased while the country's economic situation remains low."

As for THAI's strategic plans, Mr. Chai-anan Samudavanija, THAI's Chairman said that committees have been set up to help increase shareholder value and competitiveness. These committees are: 

1. Strategic Steering Committee
2. Project Management Committee
3. Task Force Committee

The area of responsibilities of the Task Force Committee may be divided as follows:

3.1 Service and Product Quality - to increase the quality of THAI's products and services in order to attract more passengers

3.2 Operational efficiency - to increase operational efficiency in areas of finance, revenue, alliances, operations at Bangkok International Airport and especially domestic cargo operations

3.3 Management - which involves management of areas including financial, human resources, business units, communications, investors, employees and e-business.

These strategic plans will help ensure that THAI can effectively compete with other airlines and accommodate the growing needs of passengers in accordance with THAI's State Enterprise plan.

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THAI Announces Future Plans

Bangkok, 14 June 2001 --- Thai Airways International Public Company Limited held a press conference to announce plans for privatization. The conference was chaired by Mr. Pracha Maleenont, Transport and Communications Deputy Minister, Mr. Chai-anan Samudavanija, THAI’s Chairman, Mr. Soonthorn Pokachaipipat, Chairman of THAI’s Executive Committee and Mr. Bhisit Kuslasayanon, THAI’s President.

Mr. Chai-anan Samudavanija said during the press conference that, “I have become Chairman of the Board of Directors at Thai Airways International Public Company Limited at a time when the commercial aviation industry is changing at a dizzying pace. As the national carrier of Thailand, THAI competes with airlines worldwide in an ever-growing aviation industry which depends heavily on global as well as regional economic growth. In addition, airline alliances are developing rapidly and are changing the whole concept of air travel for today’s airline passengers, especially affecting frequent flyers, both tourists and business travellers.

In order to ensure continual growth, any business must focus on maintaining the quality of its products and services in a constantly-changing competitive environment. In addition, a company needs to be alert to the necessity of making improvements toserve specific target markets in order to achieve and maintain a competitive edge in the industry. Expansion which focuses on quantity, while ignoring the importance of quality, may leave us in a situation that is, as the saying goes, just “more of the same”.

As the national carrier, Thai International  and what we can achieve  is a source of great pride for the Thai public; THAI evokes passionate feelings among Thai people from all walks of life feelings that are sometimes freely expressed. And as a public company, it is our essential responsibility to our shareholders and investors to provide a competitive return from our operations. We seek to serve the genuine interests of the Thai people and of the international community for being the “The First Choice Carrier: Smooth as Silk, First Time, Every Time.”

The new Board of Directors is strongly committed to improving the quality of THAI’s services, by providing a standard of in-flight products and services that will keep us at the leading edge of industry trends. We also seek to improve our operational efficiency through various measures, including rationalising the number of types of aircraft and engines, increasing the rates of asset utlisation, managing better major operational cost areas such as fuel, and adopting a network type of traffic planning, taking true origins and destinations of passengers into consideration which will enable us to compete more effectively in the new airline industry environment, as well as to increase the productivity of our employees. We strive to become a truly international organisation while maintaining our distinctive Thai identity the uniqueness that has attracted and delighted successive generations of air travellers. This emerging international organisation  will not only be a learning organisation, but it will also be one with good governance.

We have the utmost confidence that THAI’s employees are both able and willing to make this historic turnaround possible. We can again be “The First Choice Carrier” for this and for future generations, contributing to our society both as a business enterprise and as a source of pride for all Thai people as a modern Thai organisation in the 21st century.”

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