Thai Airways International (THAI) has announced a major structural shakeup with a revamp of its sales operations to turn around the company’s poor performance.
THAI president Sorajak Kasemsuvan said yesterday that the Board of Directors’ decision on restructuring was the most crucial in the past decade aiming for sustainable sales growth given the national flag carrier’s recent expansion of its fleet.
It is vital that THAI improve its marketing system to compete with low-cost and other airlines worldwide, he said.
The responsibility for sales operations, involving Bt170 billion revenue from ticket sales, solely rests on the vice president for sales, resulting in management inefficiency, he said.
Under the new structure, sales will be divided among four vice presidents. The first section concentrates on sales in the domestic and Indochina markets, and sales through call centre and ticket counters, which generate a combined revenue of Bt50 billion. Emphasis will be given to improving the call centre service.
The section on sales in Asia involves Bt60 billion revenue, and the section on Europe, Australia and Africa will have to deliver Bt60 billion in revenue.
The digital commerce section, which concentrates on ticket sales through the Internet and social media, is projected for a revenue increase from Bt18 billion at present by 15 per cent this year and 20 per cent next year.
By next year, revenue from ticket sales through the Internet must reach Bt30-36 billion, said Mr Sorajak, expressing confidence that the restructuring would generate sustainable revenue and end the company’s financial losses.
A report on THAI flight TG679 which skidded off a Suvarnabhumi Airport runway and a review of Mr Sorajok’s management performance were postponed to the next Board of Directors’ meeting next month.
Board of Directors chairman Ampon Kittiampon said the panel approved opening four new routes from Bangkok to Chongqing, Changsha, China and Luang Prabang, Lao PDR, to be operated by Thai Smile, THAI’s sister airline.
The new route between Bangkok and Sendai, Japan, will be operated by THAI.
