Bangkok--2 Apr--Thai Airways
Thai Airways International Public Company Limited announced that it officially submitted its Business Turnaround Plan to the Ministry of Transport and the Ministry of Finance.
Mr. Pichai Chunhavajira, Chairman of the Turnaround Steering Committee for Thai Airways International Public Company Limited, said that THAI officially submitted the first Business Turnaround Plan, which addresses immediate turnaround measures. A subsequent plan that addresses structural problems will be prepared at a later stage.
The immediate Business Turnaround Plan focuses on revenue enhancement, cost optimization, and confidence-building within the financial community. Revenue enhancement efforts will focus on revenue management, route management, ancillary revenue, and direct channels. Cost optimization will be conducted to streamline fuel efficiency, staff productivity, route expense, and maintenance. THAI’s target to reduce cost in 2009 by approximately 10 billion Baht. Investment projects that do not create direct benefit to core business will be deferred, in order to maintain and increase cashflow. To regain trust and confidence with relevant financial institutions, the following will be conducted: roadshows, cashflow monitoring, lengthen payment profile, and seek reserve liquidity whenever possible.
The Business Turnaround Plan in the second phase will deal with network/ route/ fleet plan strategy; fleet plan restructuring; business model and cost structure review; corporate organization, human resource and corporate culture development; management information system enhancement and long-term sustainable capital structure establishment.
THAI’s Turnaround Plan Steering Committee was established in late February this year in order to oversee work and progress on the company’s Business Turnaround Plan. The committee consists of delegates from the Ministry of Transport, the Ministry of Finance, as well as aviation and financial experts. The Steering Committee’s task is to provide strategic direction and monitor business performance, taking responsibilities in five areas: Financial Planning, Network & Fleet, Revenue Enhancement and Yield Improvement, Cost Reduction, and Communication.
The company expects to gain Government support through the Ministry of Finance, Ministry of Transport, and other related organizations by successful implementation of the Business Turnaround Plan. This endeavor will enhance the company’s image and boost customer confidence in order to be one of the world’s leading carriers.
Press Release issued by M.L. Ajcharaporn Na Songkhla,
Director of Corporate Communications and Public Relations
International Public Relations Department
Thai Airways International Public Company Limited
Tel : (662) 545-2662 / 2663 / 1711 / 4686 / 1705 / 2720
Fax : (662) 545-3891