THAI seeks more experts as ailing carrier looks to turn around in 2016

“Newcomers can be anyone, local or foreigner. We are seeking qualified persons to help us grow next year, the year of commercial and sales reforms,” president Charamporn Jotikasthira said yesterday.
The national carrier is also considering resuming some routes to countries including the United States in the final quarter of next year or early 2017 that it had grounded under pressure from costs. It hopes to regain revenue from those long-haul markets.
It has been inviting locals or foreigners to join commercial and sales units to drive growth in the year to come.
The airline expects revenue will reach Bt200 billion, up from the Bt190 billion projected for this year. For the last nine months, it has racked up a loss of Bt16 billion, but expects the whole year’s loss to moderate to Bt15 billion.
The airline needs at least one more specialist for revenue management and perhaps another for sales agents.
The airline has already hired four outsiders to overlook mainly the financial, sales, accounting and human-resources departments. Two of them are from CIMB, one from Berli Junker Jucker and one from Emirates.
A foreigner serving as an adviser to the president has seen his contract extended for six more months. THAI aims to boost revenue by 17 per cent in 2016 partially by improving its average cabin factor from the expected 73 per cent this year to 80 per cent.
Its yield should also go up by 7 per cent next year. Its current yield is lower than the market rates by 7 per cent. The company has set 2016 as the year of change, particularly in the commercial and sales areas, in a bid to drive growth faster.
“More competition is expected in 2016 due to lower fuel prices, so more promotions from competitors will be seen,” Charamporn said.
The commercial department will invest in a new information-technology system within the first six months of the new year to serve digital and online media.
The airline aims to increase online revenue from 13-14 per cent to 20 per cent next year and eventually to 30 per cent, which many other airlines are doing.
It also plans to increase revenue from sales agents worldwide, as they contribute major income. The first step is to provide intensive training for 300 staff to initiate online sales and marketing platforms to reach social-media users.
“If we can achieve [improve] utilisation of aircraft and capacity, we should be able to increase capacity by 2-3 per cent next year and also resume flights to the US in late 2016 or early 2017,” Charamporn said.
This year, despite closing four stations, discharging 20 aircraft and continuing cost-cutting exercises, the flag carrier expects its passenger numbers to increase by 2 per cent.
THAI plans to dispose of 42 aircraft this year and in the future. This year, 19 aircraft were sold, while more models such as 10 Airbus A340s and two Boeing 747s are being prepared to go on the market.