Thai Airways

[TBWG]

New president slams Thai Airways

 BBC News


Mr Amranand slammed favouritism at his airline

The new president of Thai Airways has strongly criticised political interference in his airline.

Thailand's loss-making national carrier continues to struggle with enormous pressure from outside, Piyasvasti Amranand told the BBC.

The newly appointed head of Thai Airways was in London on a global road show to gather investor support.

"The management had not really been allowed to manage the company," Mr Amranand said in an unusually frank interview.

"The company had been interfered heavily by the board, by the politicians. That had substantially weakened the management of the company, and our response to the crisis."

Restructuring

He has been the airline's president for just four weeks. Mr Amranand said it had taken months of negotiations to secure a strong enough mandate for his new job.

On Monday, the state-owned carrier reported a net loss of $121m (£71.8m) for the July-to-September quarter.

The results were worse than analysts had expected. They forecast another loss in the fourth quarter, traditionally high season for tourism.

Thai Airways is currently overhauling its management and business operations after reporting a record loss in the last three months of 2008.

Mr Amranand seems an unusual pick to run the national carrier. As a fund manager, he refused to own shares in the airline.

"Thai Airways was a company which did not provide transparent information to investors," he said.

"Thai Airways management were not able to provide clear directions or policy to investors. Most of the big funds, whether in Thailand or outside Thailand, stayed away from Thai Airways stocks."

'Top three'

Mr Amranand said he had been drawn to head the airline because it was in trouble.

"I would like to see the company becoming one of the best airlines again in Asia, and the world. Maybe top three in Asia, top five in the world, within two or three years," he said.

Central to this success, he said, was reducing political interference in the day to day running of the airline, which is majority owned by the state.

He said one of the most serious problems was nepotism and favouritism in promotions and in the awarding of contracts.

"When you promote people who have connections but no ability, initially it's okay, but eventually it weakens the company, Mr Amranand said.

"It reduces the quality of the work. That is what has happened to Thai Airways."


TBWG