A BIG CHALLENGE FOR THAI TO FLY HIGH AGAIN

       AS the new president of Thai airways International, Dr Piyasvasti Amranand will face a daunting task ahead in his attempt to revive the national airline. He has admitted that it is not going to be an easy job. "I am under no illusion about the challenges facing the aviation industry today. And that includes the challenges facing THAI," he announced.
       The airline faced a liquidity crisis that at one point threatened its viability, but since a turnaround plan was put in place, THAI appears to be showing positive results. Yet much, much more still needs to be done. First and foremost, THAI must be delared a non-interference zone from politicians. Piyasvasti has, rightly, made a plea that he should be allowed to do his job without any political inference. In short, the people involved should not aks for any further benefits from THAI. Rather they should consider how they can contribute to the airline.
       Piyasvasti needs to continue to cut costs drastically while at the same time raising fresh capital to service the debt and cope with expansion. Compared with other regional airlines such as Cathay Pacific or Singapore Airline, THAI still carries the burden of high operational costs. It needs to improve its performance and efficiency. Every division must produce returns. Piyasavasti's efforts will eventually be compared to those of THAI's regional peers. There is no domestic competitor.
       For this reason, Piyasvashi has revealed that the airline will raise fresh capital, which will help bring down its debt equity ratio from 3:1 to 2:1. THAI is burdened with debts of more than Bt160 billion. Next year alone, it will need to service at least Bt29 billion. This debt is huge, involving payments mostly for the acquisition of aircraft. THAI operates with a long-term aircraft acquisition plan. yet it has to service the short-term debt for these acquisitions. Somehow this imbalance in the financial structure has to be addressed.
       On Monday, Piyasavasti met with senior management and staff, outlining his policy. He plans to spend the first two years tackling financial problems. The next two years car then be devoted to improving the operational efficiency of the airline.
       THAI is fortunate to have a leader of Piyasvasti's calibre at this critical time. Piyasavasti has an impeccable track record. He is a finance man. And at this point, THAI needs a finance man to clean up its book.
       A graduate of Oxford University and with a PhD from the London School of Economics, he most recently served as chairman of the advisory panel to Kasikorn Bank's CEO. Piyasvasti also headed Thailand's National Energy Policy Office that transformed the country's energy sector in the 1990s, and was a former minister of energy.
       Piyasvasti said he wants to bring all his experience and knowledge to bear on the current issues facing THAI, in an effort to continually improve operational performance and the company's financial position.
       We endorse Piyasvasti's leadership at this critical juncture. The market, as well as the management and staff of THAI should give him a chance to prove himself. All Piyasvast asks is that he be allowed to do his job without political interference.