Headwinds before takeoff for new THAI team

THAI is pinning hopes of a revival to its 1990s heyday on a new leadership team, jet purchases and improving its brand as tourism booms in the region. But the new president and chairman taking the helm are political appointees without aviation experience and several executives said the airline needs to adjust to a market where the good times of having a near-monopoly at home are long over. Challenges for the new team include cutting costs, managing a mixed fleet, coping with loss-making subsidiaries as well as healing long-time rifts between government-appointed management and airline veterans. Thailand has been the beneficiary of a boom in tourist arrivals, particularly from China, but as foreign airlines have rushed to add flights, THAI has reported annual losses for four of the last five years. “Thai Airways did not adapt quickly enough and competes in one of the world’s toughest industries,” former THAI president Piyasvasti Amranand said. The structure of state enterprises in Thailand slows decision-making because the carrier needs to seek approval from many agencies for decisions, he said. On paper, prospects are good for THAI. Air traffic is booming in Asia. Also, Thailand expects 37.5m visitors this year, up 6% from 2017, most of whom arrive by air. But Thai Airways’ new president, Sumeth Damrongchaitham, who started the job this month after an 18-month search, has his work cut out.<br/>