Thai Airways Learns from Crisis: Constant Adaptation Needed

Matichon•Economy•1d ago

Reader Briefing

Thai Airways CEO Chai Eiamsoong emphasizes the critical need for continuous adaptation in the volatile aviation industry, drawing lessons from past crises.

•Thai Airways CEO Chai Eiamsoong stated that the business world's uncertainty requires constant adaptation for organizations to remain competitive.
•He highlighted that the aviation industry is high-risk due to geopolitical factors and global competition.
•The company learned lessons from a past deficit exceeding 100 billion baht and the impact of the COVID-19 pandemic.

Overview

•On May 28, Chai Eiamsoong, CEO of Thai Airways, spoke at a special forum titled 'THE SUCCESSOR: Connecting Generations, Building the Future'.
•The aviation industry is identified as high-risk and faces intense global competition, with geopolitical factors and wars being significant pressures.
•Thai Airways faced accumulated losses exceeding 100 billion baht approximately 6-7 years prior, leading to its business rehabilitation process.
•The decision to move away from state enterprise status was made to allow for more agile organizational restructuring and management systems.
•The article mentions that fleet aircraft had been in service for over 10 years without significant upgrades, affecting competitiveness.
•During the COVID-19 crisis, Thai Airways' revenue dropped to 30-40 billion baht, leading to severe liquidity issues.
•Over 80-90% of employees agreed to salary reductions to ensure the organization's continued operation.
•Thai Airways is in the process of gradually replacing its fleet and continuously improving internal work processes, including the introduction of Airbus A321neo aircraft this year.

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Key Quotes

Chai Eiamsoong

"The world changes fast. If an organization doesn't change with the situation, it can't compete. We must adapt."

โลกเปลี่ยนเร็ว ถ้าองค์กรไม่เปลี่ยนตามสถานการณ์ ก็แข่งขันไม่ได้ เราต้องปรับตัว

Chai Eiamsoong

"How can we compete like this?"

แบบนี้จะไปแข่งกับใครได้

Chai Eiamsoong

"We must tell employees about the problems. There must be sincerity, and they must see that everyone is sacrificing together."

เราต้องเล่าปัญหาให้พนักงานฟัง ต้องมีความจริงใจ และทำให้เห็นว่าทุกคนเสียสละร่วมกัน

Chai Eiamsoong

"A airline must have plenty of cash. We don't know what will happen in the future."

สายการบินต้องมีเงินสดเยอะ เราไม่รู้ว่าอนาคตจะเกิดอะไรขึ้น

Chai Eiamsoong

"Those within the organization are the ones who must solve the problems themselves."

คนในองค์กร คือผู้ที่ต้องแก้ปัญหาด้วยตัวเอง

Chai Eiamsoong

"Every change must have someone hurt first."

ทุกการเปลี่ยนแปลง ต้องมีคนเจ็บก่อน

Key Entities

Person

Chai Eiamsoong(ชาย เอี่ยมศิริ)

Chief Executive Officer (CEO) of Thai Airways.

Organization

Thai Airways Public Company Limited(บริษัท การบินไทย จำกัด (มหาชน))ℹ️

The national airline of Thailand, discussing its past losses and recovery efforts.

Prachachat Business(ประชาชาติธุรกิจ)ℹ️

The media outlet that hosted the seminar 'Thailand Next : THE SUCCESSOR Connecting Generations, Building the Future'.

Airbus A321neoℹ️

A narrow-body aircraft being added to Thai Airways' fleet to enhance future competitiveness.