The president of Thai Airways International says the airline needs a new structure to cope with intense competition.
Without urgently-needed changes, the airline could expect further losses in years to come, THAI president Sorajak Kasemsuvan told The Nation newspaper.
The airline’s corporate structure was complex, he added, due to its combination of aviation and non-aviation businesses.
“THAI’s focus should be on products and services to ensure that passengers get the best treatment. They should be assured that by flying THAI, they will get something more than just Thai hospitality," Sorajak said.
He said that a new structure would allow THAI to be more flexible in adjusting services and planning new routes.
Sorajak said all non-aviation businesses should be spun-off and given responsibility for their own revenue and costs.
Previous attempts to spin off THAI’s non-aviation businesses have been rejected by unions, who fear a loss of entitlements for members.
"This move is for the survival of all. Without changes, THAI’s corporate structure will remain idle and will not be able to compete against fiercer competition," Sorajak said.
