Hard task for THAI boss

       The board of Thai Airways International is giving its incoming president a formidable challenge -to regain the airline's position as one of the world's top carriers through a bold transformation.
       The tough assignment came after the technical hurdles that had delayed Piyasvasti Amranand's assumption of the post had been cleared, paving the way for him to take office on Oct 19.
       The mission follows the board's decision to embrace an apparently more aggressive strategy of refocusing the airline to target premium and businessclass passengers - a departure from its current industry positioning seen as
       appealing mostly to tourists.
       Dr Piyasvasti, a former energy minister, has been tasked by the board with lifting THAI into the top five global airlines - at least in terms of service quality and safety - over the next five years, THAI chairman Ampon Kittiampon said yesterday.
       THAI has plunged in the latest global passenger survey of airline quality standards, finishing last in the world's top 10 airlines in 2009, after taking fourth place last year in the Skytrax poll.
       The action plan under the five-year strategy, which the new president is to put together, will be based on customer demand.
       This approach will determine the network, inflight entertainment systems,the types of new aircraft, and the way THAI retrofits its jets.
       Other issues such as aircraft carbon emissions and fuel efficiency will also be covered in the new strategy as THAI will strive to reduce its fleet's age from 12 years to five or six years, similar to those of its key competitors, said the chairman.
       THAI has 88 aircraft, of which several,including Boeing 747-400s, have been in service for two decades.
       Corporate restructuring will be high on the national carrier's agenda for the new president.
       Two offshoots, a property fund company and a firm dealing with aircraft leasing, will be spun off to make THAI run more effectively.
       As part of its revamped strategy, THAI will support a greater role for Nok Airlines, the budget carrier in which THAI has a 39% stake, in domestic routes where the flag carrier operates at a loss.
       Dr Ampon said it was too early to say if Nok would be allowed to take over some international routes, especially regional ones, now operated by THAI.
       The formidable task comes in ex-change for the THAI board's acceptance of most of Dr Piyasvasti's conditions,including a paycheque of 900,000 baht a month, for taking on his mission without facing too much bureacracy.
       For instance, the new president is empowered to endorse procurement and business contracts worth 500 million baht, 10 times more than the current 50-million-baht limit.
       He can also change or appoint 40 vice-presidents, and have them report directly to him.
       Dr Ampon, also secretary-general of the National Economic and Social Development Board, rejected suggestions that the board had bent too much to give Dr Piyasvasti excessive power.
       "In good management practice, we need to trust the management," the THAI chairman said.
       THAI shares closed yesterday on the SET at 24.10 baht, up one baht, in trade worth 424.8 million baht.