Thai Airways will not be shutting down.
To those travelling using Thai Airways soon, you can breathe a sigh of relief because the airline will not be terminating its services anytime soon.
Well, not in the immediate future that is.
Many news outlets began reporting on October 22 that Thai Airways International (THAI) President Sumeth Damrongchaitham said the company was in a crisis and faced possible closure.
But now, Damrongchaitham is saying that his words are being taken out of context.
“THAI confirms it is perfectly capable to perform exceptionally amid tough airline competition,” he said in a statement, according to the Bangkok Post.
Prior to this new statement, the airline president had sent a message to THAI executives during a training session stating that the staff had to be “united to overcome the obstacles.”
“Other wise, the national airline must close down. There is still time for a solution, but there is not much time,” he said in his message.
Damrongchaitham had said that THAI had lost its monopoly on the northern air routes that once generated a third of THAI’s revenue, but were now dominated by competing low-cost airlines.
“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,” he said in his message. “Everyone will die if the vessel sinks.”
Was his statement a little dramatic? Maybe. But THAI really hasn’t been doing so well since the beginning of 2019.
THAI posted a lost of US$212,777,922 (6.44 billion baht) during its second quarter, raising its total loss to roughly more than US$9.2 billion (280 billion baht), according to the Bangkok Post. That’s a lot of money.
The huge loss was reportedly blamed on the decrease in tourists arrivals and a sharp increase in the value of the Thai baht on the market.
￼IMAGE: Thai Airways
Damrongchaitham said his message to the THAI staff were made in order to motivate them into taking immediate action.
“In an era when customers have so many offers to hand amid fierce airline competition, employees were asked to join forces and work to beat the competition for the inevitable achievement of improved operational results,” he said.
Reports that four destinations within the Southeast Asian region were to be dropped have also been officially dismissed as false information. At the current moment, no changes have been made to any THAI routes nor have any flights plans been changed.
So the airline will be continuing operations as usual.