Thai Airways International PCL: Route Analysis
Vesarach Aumeboonsuke Thai Airways International PCL: Route Analysis Vesarach Aumeboonsuke* Abstract During the Thai Airway’s Board of Directors Meeting on March 21, 2016, the management team had reported to the Board of Directors and the President that the company had been riding the losses during the past three consecutive years; the year 2013 (12 billion Baht), the year 2014 (15.57 billion Baht), and the year 2015 (13.05 billion Baht). Board of Directors were not satisfied with the company’s situation and called for the immediate action from the President and Management team. The management team had proposed the measures for Transformation Plan Adjustments by implementing flight reductions on unprofitable routes, unnecessary expenses, and increasing revenue. After the endorsement, each of the rehabilitation plans were allocated to related departments. For the task of route path analysis, the President assigned the financial manager, Mr. Putte (hypothetical name), to establish the model with the objective of performing flight route analysis, apply the model on Bangkok – Los Angeles route as the first prototype, and present the feasibility report to the President and Management team at their next scheduled meeting on April 7, 2016. The model was expected to analyze whether the benefits from reopening route would be sufficient to generate profits after considering all the costs and further to demonstrate the impact of route suspension/continuation on the company’s financial performance. The route analysis report was expected to include the comprehensive investigation of * International College, National Institute of Development Administration (NIDA) 118 Moo 3, Serithai Road, Klong-Chan, Bangkapi, Bangkok 10240, THAILAND.
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