THAI Chairman steps down amid carrier’s financial crisis

- A Monitor Report 03 Nov, 2019 | 482 Views|-+
Bangkok: Ekniti Nitithanprapas, Chairman of Thai Airways International has resigned amid the airline’s financial crisis and Transport Minister's push to replace directors of state enterprises.

The resignation of Ekniti took effect on October 1, the national carrier said in a brief statement to the Stock Exchange of Thailand.

Air Chief Marshal Chaiyapruk Didyasarin, current Vice-Chairman, will now serve as Acting Chairman.

THAI gave no reason why Ekniti stepped down. However, it came after the recent resignation of three Executive Directors of the airline.

Recently, Sumeth Damrongchaitham, President of THAI drew criticism for saying the company was in crisis and might have to close if its employees do not cooperate with a rehabilitation plan.

However, Sumeth claimed later that his remarks had been “misinterpreted” and the airline was not at risk of shutting down.

Nonetheless, THAI reported a net loss of nearly THB6.7 billion in the second quarter of this year. The result of the third-quarter is yet to be reported.

Last month, Deputy Transport Minister Thaworn Senneam expressed concern the carrier may be in danger of running up a net loss of well over THB10 billion for the year.

THAI marked the slowdown in Thailand’s tourism and in the global aviation market as factors behind their 10 per cent decline in revenue from last year.

Transport Minister Saksayam Chidchob has been pushing the directors of the 15 state enterprises under the ministry to resign, ever since he was appointed to the cabinet in June.

They should “show their spirit” by stepping aside since they were appointed by politicians of the past, the minister said.

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