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Message from the Chairman

Mr. Areepong Bhoocha-oom

THAI has continued to move forward with the Transformation Plan Phase 2 “Building the Competitive Strength” embracing four main strategic plans to generate revenue, reduce costs, build competency for sustainable growth and create customer service excellence. To achieve its goals, THAI has focused on improving the major system as the foundation of its operation to further enhance the Company’s potential. The new route network management system was improved to allow prompt TPI (Traffic Planning Information) organization, enabling THAI to develop a suitable network and bank structure in support of Suvarnabhumi Airport’s position as the aviation hub of this region. THAI increased its network and flight frequencies on the European and Western routes (Tehran, Moscow, Phuket-Frankfurt), with added flight frequencies to London, Brussels and Oslo.

To further enhance THAI’s competitive advantage, the pricing management system has been fine-tuned enabling THAI to make faster price adjustments to keep pace with the competition. Efficiency between ground services, in-flight services and aircraft maintenance was improved through installation of a connecting system supplying information to allow immediate services and appropriate solutions to problems, and as a foundation for future service improvement. As for sales via website, THAI has continuously enhanced the E-commerce system and is currently in the process of implementing the new system for use in 2017.

For the fleet enhancement and improvement of in-flight products, THAI took delivery of a new Airbus A350-900 XWB, a modern aircraft with state of the art facilities. Five more of the same type of aircraft will join THAI’s fleet in 2017. To provide more flying comfort and an enhanced flying experience, Business Class service has been improved at every contact point to achieve service excellence or ‘Magic Service Ring’ focusing on providing a superior and uninterrupted flying experience for passengers from the start of their journey with THAI until reaching the final destination. THAI recruited 600 new flight attendants for the new aircraft and revised the training courses to focus on building the service-minded outlook in accordance with their role and responsibilities taking into consideration the highest level of safety and service quality. The ongoing service improvement and concerted efforts have contributed to the results of opinion polls conducted among passengers and air travelers worldwide by various institutes which showed that the changes taking place at THAI are being recognized. The improvements were reflected by the Company being named for many renowned awards including the World’s Most Improved Airline for Service Quality and World’s Best Airline Lounge Spa from Skytrax and “2016 People’s Choice Awards Thailand Voted by Chinese Tourists” from the Tourism Authority of Thailand (TAT). The success and accolades in 2016 resulted from the concerted efforts and commitments of the Board of Directors, the Management and all members of staff to put the Transformation Plan into action and drive it forward. We also thank all THAI customers for their continued support of THAI’s activities and for choosing THAI as their preferred choice of carrier, as well as all shareholders for their confidence in our operations and undertakings.

In 2016, THAI also adjusted operational procedures of various functions to enhance their performance efficiency while putting in place strict measures to control costs and expenses which will be continued into 2017. THAI also exercised rigorous financial management controls in order to maintain an optimum cash balance and adjust the loan structure to suit the cash balance for each of the various currencies, resulting in a long term cost reduction. Employees’ key performance indicators (KPIs) have also been determined to be in line with the operation results according to the Transformation Plan to make sure that appropriate returns and rewards are given to the staff in recognition of their cooperation and efforts.

THAI will enter the third stage of its Transformation Plan “Sustainable Growth” in 2017 which involves further operations in order to position THAI on the global stage among the world’s leading airlines.

On behalf of THAI’s Board of Directors, Management and staff, I would like to extend our thanks and appreciation to those who continue to support THAI’s operations and hope that you will extend your support into 2017. I can assure you that we will make every possible effort to ensure that THAI will continue to grow and expand into the future while THAI’s Board of Directors, Management and staff will work closely together to ensure that our goals and missions are accomplished .

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