Yesterday the THAI board announced the “termination of employment” or in plain english the firing of Dr. Piyasvasti. The reason according to the Chairman K. Ampon is “Not that he is an incapable president. But so far, there has been poor unity in communications between him and the board of directors. To achieve THAI’s earning goals this year the contract must be terminated.”
A quick background on what Dr. Piyasvasti had accomplished during his time at Thai Airways:
1. He turned around the company when it was nearly bankrupt in 2008 and strengthened the company’s financial status.
2. His cost-cutting plan by over THB10bn in 2009 was successful
3. He was in the middle of implementing a further cost-cutting plan of THB 6 bn this year
4. His fuel hedging program also helped THAI to turn a profit in 1Q12 despite rising jet fuel prices and lower passenger yields from competition.
A communication problem? Was that the best excuse the board of Thai Airways could come up with?! How many times was he hit with a stupid stick?!
Gahhhh!! Silly things like this frustrate me, Thai Airway’s has been one grossly mismanaged publicly listed company ever since they listed in the early 90’s and since the end of 1999 the stock price has returned -60% (ignoring dividends). Everyone knows Thai Airways has been run by baboons that don’t look further than their own pockets and ensuring their own friends and family become management/pilots/attendants (quick note: a friend of mine is working there and did actually get her position through merit).
If anyone at Thai Airways is reading this please please realise a few simple facts, Thailand is well-known as a tourist destination, we have one of the busiest airports in the world (top 10 in terms of passenger arrivals), Thai Airways should be the flagship carrier for the region, whenever someone flies on Thai Airways coming to Thailand they should have a memorable experience, it should be THE first impression of Thailand. So if management could for once stop thinking about their own benefits and actually start thinking long-term and actually add value, then at the very least Thai Airways could perhaps be near its potential.
Full disclosure: We have and never had any position in THAI