Leadership crisis at Thai
Thai Airways International president Kanok Abhiradee has been stripped of his authority by a board of directors unhappy about the carrier’s deteriorating financial condition.
The stunning move was announced a day after a board meeting in which directors were reportedly taken aback when they learned the detailed state of Thai’s finances. Thai has been badly hurt by the sharp rise in fuel prices and higher staff costs. Its fiscal third-quarter losses of $116 million to June were far worse than in the same period last year.
“Due to the fuel crisis, and in order to operate the company efficiently, the board of directors approved...granting the company’s management authority to Somchainuk Engtrakul, member of Thai’s board of directors, as of 11 August,” the airline told the Stock Exchange of Thailand. “Kanok Abhiradee remains in his position as Thai’s president, but without management authority.”
Somchainuk is a former permanent secretary of Thailand’s finance ministry. He was Thai’s acting president briefly in 2001, when the carrier went through its last leadership crisis following the sacking of then-president Bhisit Kuslasayanon. Bhisit, an airline veteran, had the top job for less than a year.
Leadership changes at Thai are typically characterised by periods of significant political manoeuvring behind the scenes.
Government officials say Kanok will be without management authority for at least three months, after which the board will consider whether to reinstate him or find a replacement.
Nicholas Ionides Singapore
Source: Airline Business
