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Message from the President

Mr. Charamporn Jotikasthira

2015 was another challenging year for Thai Airways. In addition to the ongoing efforts in implementing the Corporate Transformation Plan, Thai Airways International also faced the challenge of resolving issues arising from the result of the assessment conducted on the Civil Aviation Authority of Thailand by the International Civil Aviation Organization (ICAO) on safety aspects.

Throughout 2015, the Executive Team and I have been fully committed to operating according to the Transformation Plan of Thai Airways International Public Company Limited. Through constant communication with our employees via every possible channel, we will remind everyone to provide services to both internal and external customers from our hearts in order to create maximum level of satisfaction. With the international awards and recognition that we received in 2015 in various fields, the Management Team and I are confident that together we will achieve the goals set out in the Transformation Plan.

2015 was a year of organizational reform for Thai Airways. The Company has gained operational efficiency as seen in the total number of passengers served which increased from 17.7 million in 2014 to 18.4 million in 2015, despite a decrease in the utilization of resources resulting from the closure of four stations in Africa, Europe and North America which had been unprofitable for many consecutive years, and the decommissioning of aircraft that were no longer efficient or at the end of their useful life. The reduction in our usage of aircraft on average by 10 planes clearly indicates the Company’s move towards becoming an airline with efficient operations.

The implementation of the strategic plan is nearing completion with focus given to improving fleet and route network in order to stop the losses. We are determined to move forward with the Transformation Program by emphasizing on making improvements in commercial aspects via an expansion of route network. This has been achieved through collaboration with business alliances to develop sales distribution channels and revenue management using modern technology to provide fast and comprehensive services, and improving the connection between THAI and Thai Smiles’ services, expanding flight routes and giving our passengers a smoother and more convenient service. On the commercial mail and cargo transport side, the Company has made improvements to processes in line with Customers’ requirements and as a result, I am pleased to report that we have turned a loss result into a profitable one.

In addition, efforts have been made to improve the quality in other areas of services such as reservations which can now be made via our Call Center, sales offices and on our website, leading to a significant increase in customer satisfaction compared to 2014. The Company has started the program, Service Beyond : New Business Class Service, which aims at providing a service that more than meets with the customers’ expectation, with pilot runs carried out in September 2015 on the Bangkok-Narita routes. These were followed by a customer satisfaction survey which indicated a satisfaction level above the target, with some suggestions for improvement. Once further improvements were made satisfactorily, the program was launched in November on the Bangkok-London routes and will eventually be rolled out on all other flight routes during 2016.

The company has been implementing the ‘Safety Beyond Compliance’ program since May 2015 in order to strengthen the overall standards of safety for Thailand’s civil aviation industry by stringently following safety standard level applied by the European Community, which are recognized as the highest in the aviation industry. The Company has recently been granted a Third Country Operator (TCO) permission by the Organization of the European Aviation Safety (EASA) to fly into Europe effective from December 2015. This is a testament that reinforces the Company’s achievements at the highest level, as well as extremely good news for the Company.

The report on advance ticket reservations in 2016 has indicated positive trends in sales which are expected to continue with oil prices forecast to remain stable compared to 2015, leading to favorable operating results for the Company in addition to those set out in the strategic, revenue, cost reduction, capability-building and service excellence plans previously submitted to the State Enterprise Policy Committee.

Finally, the Management Team along with all the employees and myself, are confident that in the near future, we will be able to rebuild the strength for the Company so that it can return to the position of the nation’s pride once again, and above all, to regain its ability in generating profits and creating satisfactory returns for our customers, shareholders and all benefactors.

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