Can TG’s boss beat the system?

If the first step towards solving a problem is to recognise its existence, the fact that Thai Airways International’s new president Dr Piyasvasti Amranand is coming clean with a monumental range of problems is a welcome start of what is set to be a long and arduous process of solving them.

Listening to his methodical assessment of the problems that have mounted in Thai Airways over the years, it was difficult not to see the amazing parallels with those which have beset the wider Thai tourism industry at large.

Dr Piyasvasti’s recognition of – and to some degree, incredulity at – the fact the many of Thai Airways’ problems were self-inflicted is equally applicable to all that has gone wrong with the Thai tourism industry over a similar time-frame.

For both the national tourism industry and the national airline, cronyism, political meddling, corruption and back-stabbing has left a good brand image tarnished, good people demoralised and a good product decimated. The subsequent downstream impact on service quality, standards and respectability was obvious.

As both Thai Airways and the Tourism Authority of Thailand are set to mark the 50th anniversary of their founding in 2010, a clean-up in Thai Airways should pave the way for a similarly long-overdue re-engineering of the tourism industry at large, especially in view of an even more important upcoming event, the 7th cycle 84th birthday commemoration of His Majesty the King in 2011.

As Thai Airways is the critical transportation component of Thailand, the tourism product, Dr Piyasvasti’s remark that “you cannot build the brand unless you build the product first,” cuts both ways. As Thai Airways was built entirely on the strength of the Thai tourism product, especially the country’s unique geographical location, any lowering of standards by one was bound to affect the other.

Although Thai Airways makes some of its money on the back of hub-and-spokes connecting traffic, and although the Thai tourism industry does not depend solely on Thai Airways for its transportation, both are vital lifelines for each other; other airlines flying to Bangkok can exit any time, but not Thai Airways.

Sadly, the TAT, too, has been hurt by image problems, also self-inflicted.

Two governors who headed the TAT in the early years of this past decade, Messrs Pradech Phayakvichien and Seree Wangpaichitr, were known for their immaculate honesty. Then came  Juthamas Siriwan who is better know for cultivating political connections.

The allegations of dubious dealings in the Bangkok International Film Festival created an almighty uproar. Although they remain unproven in a Thai  court of law, the mere whiff of impropriety did enough damage the image of TAT.

Similarly, politics has claimed other victims. Natwut Amornviwat took over as president of the Thailand Convention & Exhibition Bureau in October 2007 and resigned just 18 months later, ostensibly for family reasons. However, TCEB staff readily admit that the organisation is not without its internal machinations and external political influence.

Dr Piyasvasti has done a lot of things right in the build-up to his appointment. Among the first people he called on were a number of former Thai presidents, including Messrs Thamnoon Wanglee, Phisit Kuslasayanon, Kanok Aphiradee and Apinan Sumanaseni.

All of them, he says, gave him the benefit of their experience, but among the best advice, he says, came from Mr Kanok who told him to ensure that he had a good lawyer and to negotiate a cast-iron contract that would put him beyond the personal whims and fancies of political masters.

He also spent hours talking to Thai Airways staff and was pleasantly surprised to hear their refreshingly creative ideas on how to improve things within the airline. “I asked them if they had ever presented their ideas to anyone, and the response I mostly got was, ‘No-one. No-one was interested’.”

Dr Piyasvasti knows perfectly well that his efforts to fight “the system” and undo decades of unchecked cronyism, corruption and nepotism, will see “the system” fight back. His counter-weapon is a unique whistle-blower policy which he says is due to be finalised this month or in January 2010.

This will allow the “good guys” to blow the whistle on the “bad guys”. Already, he indicates with his hands, the “whistle-blowing” file is about 20 centimetres high, and he intends to ensure that every one of the allegations are checked out.

Asked if he was prepared for the possibility that some of them may lead to criminal investigations, he replied, “So what if they do?”

Dr Piyasvasti’s tenure at Thai Airways is set to be historic in more ways than one. The best and worst of Thai cultures are heading for a monumental clash.

If he can beat “the system”, it may well have a cascading effect on other state enterprises facing similar problems. If he fails, “the system” will have won, and the entire tourism industry will pay the price.