Acting THAI Airways boss reports low revenue

In his first news conference as acting president, after the dismissal of former president Piyasvasti Amranand, Chokchai said five-month revenue was 3.5 per cent below the Bt80-billion target because of an increase in employee salaries.
He added that if adjustments are not made, the whole-year target could be missed by such a significant amount that a crisis could occur.
He said the board at yesterday’s meeting acknowledged the financial results. It resolved to establish a committee to introduce strategies to drive revenue. The committee should take shape within a month. The new panel will also supervise cost reductions and boost efficiency of flight planning.
In his farewell statement to employees on June 20, Piyasvasti said he was convinced that THAI could achieve this year’s net-profit target of Bt6 billion, thanks chiefly to falling oil prices as well as revised marketing strategies and cost-cutting plans.

EMPLOYEE RIFT
THAI once before faced a loss of more than Bt21 billion, in 2008. Piyasvasti was recognised as the person who brought about the financial turnaround.
His dismissal caused rifts among employees, with one group led by the labour union backing Piyasvasti and the other group backing the board led by chairman Ampon Kittiampon.
Yesterday morning, two groups of employees gathered in front of the THAI building. Piyasvasti’s supporters pressed for a clear explanation by Ampon within seven days for the dismissal and seven other points, including details on the acquisition of 38 new aircraft worth Bt240 billion. The union said that if Ampon could not clarify these issues, he should not stay on in office.
Piyasvasti has brought this case to the Central Labour Court, asking for more compensation, as he claims his term was terminated prematurely on unclear grounds.