THAI president on Road Show

Thai Airways International’s new president, Piyasvasti Amranand, visited the UK last week for what he called a road show to meet with international investors and outline his vision for THAI.

Mr Piyasvasti’s recovery plan focuses on reducing of the level of debt-to-equity ratio from 3:1 to 2:1 (outstanding debts now  Bt160 billion), enhancing internet sales from 4% to 15% by the end of 2010, reviewing loss-making routes, seeking options to increase capacity, reduce non-fuel costs by Bt11 billion this year, reduce staff benefits and improve cooperation with Star Alliance partners and Nok Air, THAI’s low cost subsidiary carrier to build profit.

Recapitalization will be dependent on planned investments, operating results and other financing options.

He also identified challenges resulting from the economic slowdown, political uncertainty in Thailand, fuel price fluctuations and the higher level of competition.

“Business will be difficult with the increase in regional competitors, increased competition from Middle East airlines as well as the rapid growth of low cost airlines,” he said.

THAI is also working on measures to improve revenue yield management, niche marketing, enhance customer data mining, inflight product revamp while strictly controlling operating costs.