Privatise THAI
The transport minister has approved loss-making Thai Airways' purchase of 38 airplanes, estimated to be worth 136 billion baht, to increase its competitiveness (BP, Aug 6). However, this will do as much good as replacing the roof of a shaky and already-decrepit house. New planes are just one way to draw in new customers.
What passengers really need is competitive pricing, new and flexible routes, convenient departure times, better customer service, and for Thai Airways to manage their union effectively. In all of these cases, no new aircraft are required -- only a good sense of strategic management. As taxpayers' money is involved in the acquisition of new aircraft, its investment worthiness must be scrutinised by the public and not rushed through.
In the sea of change and stiff competition from low-cost airlines, Thai Airways has remained the same; uncompetitive, inefficiently run, accumulating debts every year, and handing out excess perks to board members and families. The increase in tourists to the country is largely driven by low-cost airlines, not our national carrier.
To me, Thai Airways is a political organisation, with 51% of its shares owned by the Ministry of Finance and supervised under the Transport Ministry. As such, making the company lean, profit- and customer-driven isn't its priority. Hiring a competent CEO to run the company wouldn't do much good, with political pressure lurking behind. The only option left for this ailing national carrier is privatisation. Let the private sector, with the right skills and resources run it, free from political interference and appointment. Then watch it take off.
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