23rd Oct 2019
Flag carrier Thai Airways International Public Company Ltd. is not at risk of shutting down amid reports that it is suffering from revenue losses over a tight competition.
Defending its president, Thai Airways in a statement underscored that the airline is “performing exceptionally” despite cut-throat competition with low-cost carriers.
This came after Bangkok Post on Tuesday quoted Thai Airways President Sumeth Damrongchaitham, while in a meeting with the firm’s staff, that the company was suffering a crisis.
“The competition is very fierce this year. Thai is really in a crisis. Next year, it must do its best. If staff are still unaware and do nothing, they will not have enough time to fight back. Today very little time remains. Today there is no comfort zone. Everyone will die if the vessel sinks,” he was quoted as saying.
Damrongchaitham also sought to take immediate action to help the company reduce expenses and boost profits.
Thai Airways defended Damrongchaitham, saying he intended to bring awareness to employees over the highly-competitive state of the airline industry and Thai’s competitive stance in the market.
“[He] clearly emphasized the importance and urgent necessity of overcoming obstacles in conducting airline business,” it added.
Based on data from The Stock Exchange of Thailand, the carrier booked a net loss of Bt6 billion despite incurring revenues worth Bt94.5 billion during the same period.
Net loss last year also widened by 452 percent to Bt11.6 billion as against the Bt2.1 billion registered in 2017.