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A Singaporean's guide to living in Thailand
- Thread starter Leongsam
- Start date
No hope
2 weeks ago fried Hokkien sotong noodle turned out to be pretty good was free yesterday so I fried again
Ingredient
Prawn, pork belly, sotong
Beehoon and mee (Thailand don't have the thicker beehoon)
Gu chai, eggs, home made sambal chili, home made lard, garlic
Finally
The result
Ingredient
Prawn, pork belly, sotong
Beehoon and mee (Thailand don't have the thicker beehoon)
Gu chai, eggs, home made sambal chili, home made lard, garlic
Finally
The result
Thailand sees three new virus cases – all in state quarantine
National
May 26. 2020
Screenshot from https://covid19.ddc.moph.go.th/en
National
May 26. 2020
Screenshot from https://covid19.ddc.moph.go.th/en
Shady look, no? 
Thamanat targeted for impeachment over Australian criminal record
Bangkok Post PUBLISHED : 26 MAY 2020 AT 13:39
Deputy Agriculture Minister Thamanat Prompaw. (file poto)
The Move Forward Party will seek the impeachment of MP and Deputy Agriculture Minister Thamanat Prompaw over his criminal record in Australia, a party spokesman said on Tuesday.
Natcha Boonchaiya-insawat said the party's MPs would submit a motion for the impeachment of Mr Thamanat to the House speaker on Wednesday afternoon.
Mr Thamanat should have been disqualified from serving as an MP and in the cabinet because of his heroin smuggling-related sentence and imprisonment in Australia.
During the censure debate in February Mr Thamanat had failed to present evidence proving his innocence, Mr Natcha said.
The opposition party's spokesman said Section 98(10) of the constitution prohibited anyone found guilty of a narcotics trafficking offence from standing for election to parliament. Violating the same section would also mean his disqualification from holding a cabinet seat, he said.
Thamanat targeted for impeachment over Australian criminal record
Bangkok Post PUBLISHED : 26 MAY 2020 AT 13:39
Deputy Agriculture Minister Thamanat Prompaw. (file poto)
The Move Forward Party will seek the impeachment of MP and Deputy Agriculture Minister Thamanat Prompaw over his criminal record in Australia, a party spokesman said on Tuesday.
Natcha Boonchaiya-insawat said the party's MPs would submit a motion for the impeachment of Mr Thamanat to the House speaker on Wednesday afternoon.
Mr Thamanat should have been disqualified from serving as an MP and in the cabinet because of his heroin smuggling-related sentence and imprisonment in Australia.
During the censure debate in February Mr Thamanat had failed to present evidence proving his innocence, Mr Natcha said.
The opposition party's spokesman said Section 98(10) of the constitution prohibited anyone found guilty of a narcotics trafficking offence from standing for election to parliament. Violating the same section would also mean his disqualification from holding a cabinet seat, he said.
What about men? Bloody racist post.
You mean sexist
Men? Different priorities kap poh
9 more Covid-19 patients, all returnees
https://www.bangkokpost.com/thailand/general/1925108/9-more-covid-19-patients-all-returnees#cxrecs_s
https://www.bangkokpost.com/thailand/general/1925108/9-more-covid-19-patients-all-returnees#cxrecs_s
You mean sexist
Men? Different priorities kap poh
Omg what happened to me
No local infections
Eleven new cases of coronavirus disease reported, all quarantined returnees from overseas.
https://www.bangkokpost.com/thailand/general/1925728/11-new-covid-19-cases-all-returnees
Eleven new cases of coronavirus disease reported, all quarantined returnees from overseas.
https://www.bangkokpost.com/thailand/general/1925728/11-new-covid-19-cases-all-returnees
Complete end to lockdown on July 1
State of emergency likely to end June 30
PUBLISHED : 28 MAY 2020 AT 14:43
Some vendors and customers remove face masks at Wong Wian Yai market in Bangkok on Thursday even though the government is asking people to wear them. Security officials say all businesses and activities will be allowed to resume in July. (Photo by Arnun Chonmahatrakool)
The government has set July 1 for the lift of all business and activity lockdowns ordered earlier to cope with the coronavirus disease 2019 (Covid-19), said the National Security Council chief.
These include interprovincial and international travel, as well as the end of emergency decree and curfew.
NSC secretary-general Gen Somsak Rungsita said on Thursday that the lift of restrictions would be a complete reopening of the country. Officials would next month prepare measures for the reopening.
"Authorities will have serious discussions because after the emergency decree ends, other laws will be used instead," he said.
"People's cooperation is important. This concerns the use of face masks, social distancing, hand wash and limited activities. As long as the disease is spreading worldwide, we will have to fight against it for a while."
Gen Somsak said the executive decree on public administration in emergency situations would end in June and the ban on international travel would continue until then.
The full reopening will come after the third phase of the relaxation to take place in June.
The government's Centre for Covid-19 Situation Administration (CCSA) will on Friday finalise details on what businesses could resume and on what conditions under the third phase of relaxation in June.
On Wednesday, his committee on business easing did not reach a conclusion on high-risk activities that were suspended and seriously affected the economy, he said.
For next month, Gen Somsak said that curfew hours would be further shortened and more restrictions on inter-provincial travel would be lifted under the third phase.
CCSA spokesman Dr Taweesil Visanuyothin on Thursday said more activities at malls would resume and athletes' practicing grounds would reopen.
Operators and customers would be required to use Thai Chana mobile application for checking in and out of premises since the businesses allowed to reopen in this stage are medium- to high-risk ones.
Prime Minister's Office Minister Tewan Liptapallop said movie theatres would not reopen because operators said there was no new movie during this time.
"It is not because we oppose the reopening, but operators say there are no new films to screen at the moment," he said.
He also said the government was considering financial aid for temples where all activities stopped including donations from the public.
https://www.bangkokpost.com/thailand/general/1925768/complete-end-to-lockdown-on-july-1
State of emergency likely to end June 30
PUBLISHED : 28 MAY 2020 AT 14:43
Some vendors and customers remove face masks at Wong Wian Yai market in Bangkok on Thursday even though the government is asking people to wear them. Security officials say all businesses and activities will be allowed to resume in July. (Photo by Arnun Chonmahatrakool)
The government has set July 1 for the lift of all business and activity lockdowns ordered earlier to cope with the coronavirus disease 2019 (Covid-19), said the National Security Council chief.
These include interprovincial and international travel, as well as the end of emergency decree and curfew.
NSC secretary-general Gen Somsak Rungsita said on Thursday that the lift of restrictions would be a complete reopening of the country. Officials would next month prepare measures for the reopening.
"Authorities will have serious discussions because after the emergency decree ends, other laws will be used instead," he said.
"People's cooperation is important. This concerns the use of face masks, social distancing, hand wash and limited activities. As long as the disease is spreading worldwide, we will have to fight against it for a while."
Gen Somsak said the executive decree on public administration in emergency situations would end in June and the ban on international travel would continue until then.
The full reopening will come after the third phase of the relaxation to take place in June.
The government's Centre for Covid-19 Situation Administration (CCSA) will on Friday finalise details on what businesses could resume and on what conditions under the third phase of relaxation in June.
On Wednesday, his committee on business easing did not reach a conclusion on high-risk activities that were suspended and seriously affected the economy, he said.
For next month, Gen Somsak said that curfew hours would be further shortened and more restrictions on inter-provincial travel would be lifted under the third phase.
CCSA spokesman Dr Taweesil Visanuyothin on Thursday said more activities at malls would resume and athletes' practicing grounds would reopen.
Operators and customers would be required to use Thai Chana mobile application for checking in and out of premises since the businesses allowed to reopen in this stage are medium- to high-risk ones.
Prime Minister's Office Minister Tewan Liptapallop said movie theatres would not reopen because operators said there was no new movie during this time.
"It is not because we oppose the reopening, but operators say there are no new films to screen at the moment," he said.
He also said the government was considering financial aid for temples where all activities stopped including donations from the public.
https://www.bangkokpost.com/thailand/general/1925768/complete-end-to-lockdown-on-july-1
Still no go, talk cock only?
Foreigners allowed to enter Thailand on case-by-case basis
National
May 29. 2020
Foreign Ministry's deputy spokesman Natapanu Nopakun
By The Nation
Under phase 3 of the lockdown relaxation, foreigners with work permits or permission from the Labour Ministry or other government agencies will be allowed to enter the country after registration, the Foreign Ministry announced on Friday (May 29).
“Permission to enter does not cover all groups as we are proceeding step by step,” said deputy spokesman Natapanu Nopakun at a daily briefing on the Covid-19 situation.
The Foreign Ministry has informed Thailand’s foreign chambers of commerce about the relaxation. Eligible foreign nationals are invited to submit applications at Thai Embassies in their countries. They must have health insurance and a health certificate. They will also be subject to 14- quarantine on entry to Thailand, either in a state facility or in a private facility at their own cost.
Details of the letter sent to all foreign chambers of commerce in Thailand are as follows:
1. The Royal Thai Government's invocation of the Emergency Decree on Public Administration in Emergency Situations BE2548 (2005) (No I) dated 25 March BE2563 (2020) to control the outbreak of the Coronavirus Disease (Covid-19), closes the entry into the Kingdom of non-Thai nationals, in accordance with the laws on communicable diseases and immigration. However, clause 3 (5) of the Regulation issued under the said Emergency Decree, also allows non-Thai nationals who either possess a valid work permit or have already been granted permission from a Thai government agency to work in the Kingdom, to apply for permission to enter the Kingdom.
2. It is, however, requested that only those in urgent need to enter the Kingdom may submit an application for entry. The Ministry of Foreign Affairs, in consultation with the Board of Investment and the Ministry of Labour, will consider all requests for entry on a case by case basis, taking into account urgency and economic importance, among others.
3. The procedure for non-Thai nationals who wish to submit an application for entry are as follows:
3.1 Contact the Royal Thai Embassy or the Royal Thai Consulate-General in their country of departure to apply for 'Certificate of
Entry into the Kingdom of Thailand" at least 10 working days before the date of intended departure. The applicants must present:
(1) copy of his work permits or copy of Ietter of permission issued by a Thai Government agency (in most cases, by the Ministry of Labour) to work in Thailand;
(2) a valid health insurance policy covering all expenditures of medical treatment, including Covid-19 worth at least 100,000 USD.
3.2 The Thai Embassy/Consulate-General will forward the application to the Ministry of Foreign Affairs in Bangkok. If the application is approved, the Thai Embassy/Consulate-General will be instructed to issue the "Certificate of Entry into the Kingdom of Thailand" and appropriate visa to the applicant.
4. At the port of departure/embarkation (eg airline check-in counter), the approved applicant is required to present (I) a "Certificate of Entry into the Kingdom of Thailand" issued by the Royal Thai Embassy Consulate-General; (II) a completed and signed "Declaration Form" obtained from the Embassy/Consulate-General; (III) a Fit to Fly Health Certificate' issued no more than 72 hours before departure; and (IV) a health insurance covering all expenditures of medical treatment, including Covid-19, while traveling to Thailand in an amount of at least 100,000 USD.
5. Upon entry into the Kingdom, non-Thai nationals will be subjected to a 14-day state quarantine at a government-designated Alternative State Quarantine (ASQ) facility at their own expenses, and obliged to comply with the government's disease prevention measures pursuant to clause 11 of the Regulation issued under Section 9 of the said Emergency Decree.
Foreigners allowed to enter Thailand on case-by-case basis
National
May 29. 2020
Foreign Ministry's deputy spokesman Natapanu Nopakun
By The Nation
Under phase 3 of the lockdown relaxation, foreigners with work permits or permission from the Labour Ministry or other government agencies will be allowed to enter the country after registration, the Foreign Ministry announced on Friday (May 29).
“Permission to enter does not cover all groups as we are proceeding step by step,” said deputy spokesman Natapanu Nopakun at a daily briefing on the Covid-19 situation.
The Foreign Ministry has informed Thailand’s foreign chambers of commerce about the relaxation. Eligible foreign nationals are invited to submit applications at Thai Embassies in their countries. They must have health insurance and a health certificate. They will also be subject to 14- quarantine on entry to Thailand, either in a state facility or in a private facility at their own cost.
Details of the letter sent to all foreign chambers of commerce in Thailand are as follows:
1. The Royal Thai Government's invocation of the Emergency Decree on Public Administration in Emergency Situations BE2548 (2005) (No I) dated 25 March BE2563 (2020) to control the outbreak of the Coronavirus Disease (Covid-19), closes the entry into the Kingdom of non-Thai nationals, in accordance with the laws on communicable diseases and immigration. However, clause 3 (5) of the Regulation issued under the said Emergency Decree, also allows non-Thai nationals who either possess a valid work permit or have already been granted permission from a Thai government agency to work in the Kingdom, to apply for permission to enter the Kingdom.
2. It is, however, requested that only those in urgent need to enter the Kingdom may submit an application for entry. The Ministry of Foreign Affairs, in consultation with the Board of Investment and the Ministry of Labour, will consider all requests for entry on a case by case basis, taking into account urgency and economic importance, among others.
3. The procedure for non-Thai nationals who wish to submit an application for entry are as follows:
3.1 Contact the Royal Thai Embassy or the Royal Thai Consulate-General in their country of departure to apply for 'Certificate of
Entry into the Kingdom of Thailand" at least 10 working days before the date of intended departure. The applicants must present:
(1) copy of his work permits or copy of Ietter of permission issued by a Thai Government agency (in most cases, by the Ministry of Labour) to work in Thailand;
(2) a valid health insurance policy covering all expenditures of medical treatment, including Covid-19 worth at least 100,000 USD.
3.2 The Thai Embassy/Consulate-General will forward the application to the Ministry of Foreign Affairs in Bangkok. If the application is approved, the Thai Embassy/Consulate-General will be instructed to issue the "Certificate of Entry into the Kingdom of Thailand" and appropriate visa to the applicant.
4. At the port of departure/embarkation (eg airline check-in counter), the approved applicant is required to present (I) a "Certificate of Entry into the Kingdom of Thailand" issued by the Royal Thai Embassy Consulate-General; (II) a completed and signed "Declaration Form" obtained from the Embassy/Consulate-General; (III) a Fit to Fly Health Certificate' issued no more than 72 hours before departure; and (IV) a health insurance covering all expenditures of medical treatment, including Covid-19, while traveling to Thailand in an amount of at least 100,000 USD.
5. Upon entry into the Kingdom, non-Thai nationals will be subjected to a 14-day state quarantine at a government-designated Alternative State Quarantine (ASQ) facility at their own expenses, and obliged to comply with the government's disease prevention measures pursuant to clause 11 of the Regulation issued under Section 9 of the said Emergency Decree.
Curfew reduced to 11pm-3am
National
May 29. 2020
By The Nation
From June 1, the curfew will be reduced to 11pm to 3am, from the current period of 11pm to 4am, National Security Council Secretary General Gen Somsak Rungsita said today (May 29).
The curfew is being cut in phases after it was initially imposed on April 3 for the period between 10pm and 4am.
However, the country would remain closed to foreigner visitors due to concern over the spread of Covid-19 from abroad, said Somsak.
Inter-provincial travel will be allowed to restart on June 3 for those who had necessary journeys to make, he added.
Department stores could also open until 9pm.
National
May 29. 2020
By The Nation
From June 1, the curfew will be reduced to 11pm to 3am, from the current period of 11pm to 4am, National Security Council Secretary General Gen Somsak Rungsita said today (May 29).
The curfew is being cut in phases after it was initially imposed on April 3 for the period between 10pm and 4am.
However, the country would remain closed to foreigner visitors due to concern over the spread of Covid-19 from abroad, said Somsak.
Inter-provincial travel will be allowed to restart on June 3 for those who had necessary journeys to make, he added.
Department stores could also open until 9pm.
Lockdown eased from Monday
Curfew hours shortened, more activities allowed
Bangkok Post PUBLISHED : 29 MAY 2020 AT 14:36
Customers enjoy returning to a shopping centre in Rangsit area of Pathum Thani province. The government will allow malls to extend opening hours from next Monday as part of its third-phase easing of the business and activities lockdown. (Photo: Apichit Jinakul)
The government has announced the third stage of the easing of the business and activity lockdown, effective from Monday.
It allows restricted activities at schools, theatres, beauty parlours, fitness clubs, sports fields, recreational ponds, ballroom dancing venues, convention halls and zoos.
The curfew is also shortened to 11pm to 3am from June 1.
Gen Somsak Rungsita, secretary-general of the National Security Council, said on Friday that school buildings can reopen for admission examinations and short training sessions, but not for normal classes. Private tuition schools for vocational training, arts and sports can resume.
Malls could remain open until 9pm. Exhibition and convention venues could also open until 9pm, but activity space at each would be limited to 20,000 square metres.
Barbers and hairdressers will be allowed to dye hair in addition to hair cutting, washing and drying, but their services are still capped at two hours at a time and customers are not allowed to wait on the premises.
Child daycare centres can open only for the preparation of food and beverages for parents to take home to their children.
Beauty clinics and salons and tattoo and piercing parlours can reopen, but not provide facial services, and staff and customers must wear face masks.
Health-oriented massage parlours can reopen for two hours of service at a time. Sex massage parlours, steam and herbal saunas remain closed.
Fitness clubs in and outside malls will reopen from June 1 but visitors' numbers will be limited and sauna services are still suspended.
Stadiums for football, futsal, basketball and volleyball will resume for exercise and practice, on the condition the number of non-players is capped at 10.
Bowling and skating centres and the like can reopen for exercise and practice only. Ballroom dancing centres will reopen.
Ponds for sports and recreational activities - for jetskis, kitesurfing, banana boats and such-like - can reopen as long as the number of people is limited, but not for competition.
Theatres, including movie theatres, will reopen but the audience is limited at 200 at each place. Everyone must wear face masks, and double-seating is allowed. The ban on concerts continues.
Zoos can reopen but visitors must not gather for activities. Curfew hours will be shortened to 11pm-3am to facilitate more businesses.
Curfew hours shortened, more activities allowed
Bangkok Post PUBLISHED : 29 MAY 2020 AT 14:36
Customers enjoy returning to a shopping centre in Rangsit area of Pathum Thani province. The government will allow malls to extend opening hours from next Monday as part of its third-phase easing of the business and activities lockdown. (Photo: Apichit Jinakul)
The government has announced the third stage of the easing of the business and activity lockdown, effective from Monday.
It allows restricted activities at schools, theatres, beauty parlours, fitness clubs, sports fields, recreational ponds, ballroom dancing venues, convention halls and zoos.
The curfew is also shortened to 11pm to 3am from June 1.
Gen Somsak Rungsita, secretary-general of the National Security Council, said on Friday that school buildings can reopen for admission examinations and short training sessions, but not for normal classes. Private tuition schools for vocational training, arts and sports can resume.
Malls could remain open until 9pm. Exhibition and convention venues could also open until 9pm, but activity space at each would be limited to 20,000 square metres.
- Lockdown eased from Monday
- Complete end to lockdown on July 1
- Unease in Greece as restaurants, cafes reopen
Barbers and hairdressers will be allowed to dye hair in addition to hair cutting, washing and drying, but their services are still capped at two hours at a time and customers are not allowed to wait on the premises.
Child daycare centres can open only for the preparation of food and beverages for parents to take home to their children.
Beauty clinics and salons and tattoo and piercing parlours can reopen, but not provide facial services, and staff and customers must wear face masks.
Health-oriented massage parlours can reopen for two hours of service at a time. Sex massage parlours, steam and herbal saunas remain closed.
Fitness clubs in and outside malls will reopen from June 1 but visitors' numbers will be limited and sauna services are still suspended.
Stadiums for football, futsal, basketball and volleyball will resume for exercise and practice, on the condition the number of non-players is capped at 10.
Bowling and skating centres and the like can reopen for exercise and practice only. Ballroom dancing centres will reopen.
Ponds for sports and recreational activities - for jetskis, kitesurfing, banana boats and such-like - can reopen as long as the number of people is limited, but not for competition.
Theatres, including movie theatres, will reopen but the audience is limited at 200 at each place. Everyone must wear face masks, and double-seating is allowed. The ban on concerts continues.
Zoos can reopen but visitors must not gather for activities. Curfew hours will be shortened to 11pm-3am to facilitate more businesses.
https://asia.nikkei.com/Business/Co..._date=20200529190000&seq_num=2&si=%%user_id%%
In 1997, Thai Airways became the only Asian airline to be among the five founding members of the Star Alliance, now the world's largest airline alliance. After more than a decade of poor financial performance and the impact of the coronavirus, Thai faces a major overhaul under Bankruptcy Court supervision. © AP
Thai Airways: pandemic delivers final blow to mismanaged carrier
Stripped of state protection, national icon faces drastic recovery overhaul
MASAYUKI YUDA, Nikkei staff writerMay 29, 2020 04:02 JST
BANGKOK -- These days, Bangkok's normally bustling main international airport feels like a museum dedicated to displaying Boeing and Airbus jets owned by Thai Airways International, with the national flag carrier's fleet largely grounded as the novel coronavirus pandemic paralyzes global air travel.
The mixed collection of Boeing 747-400s, Airbus A330s, Boeing 787-9s and Airbus A380s sitting silently on the tarmac or inside hangars at Suvarnabhumi Airport might appeal to aviation enthusiasts and photographers looking for a rare and dramatic shot. But the inertness of the fleet highlights not just the impact of COVID-19 but the airline's decades of financial inefficiency.
"Thai Airways troubles started in the 1990s when it decided to diversify and buy every type of plane that was being manufactured," said an airline industry insider in Thailand. Different models have different specs using different engines, the person told the Nikkei Asian Review, forcing the airline to train an army of engineers to keep the General Electric and Rolls-Royce engines flightworthy, inflating maintenance costs.
The inefficiency manifest at Suvarnabhumi is just one part of a history of mismanagement, corruption, and political interference that has now plunged the airline into overhaul proceedings. The kingdom's Bankruptcy Court on Wednesday accepted a petition from Thai, as the airline is commonly known, for rehabilitation under the court's supervision, with the first hearing scheduled for August.
A source in the Prime Minister's Office said that the coronavirus is what exposed Thai's underlying corporate culture and financial weaknesses. But for aviation analysts, the airline becoming the first national flag carrier in the world to go through legal rehabilitation was no surprise. The pandemic was simply the last straw that ultimately broke its wings.
CreditRiskMonitor, a New York-based credit research company, on March 11 named Thai along with Virgin Australia Holdings, Sweden-based SAS and Malaysia's AirAsia X as airlines with a risk of bankruptcy 10 to 50 times greater than the average public company. Of those, Virgin Australia entered voluntary administration -- equivalent to Chapter 11 bankruptcy in the U.S. -- ahead of Thai.
Ahead of the filing, the Ministry of Finance on May 22 trimmed its shareholding to 47.86 from 51.03%, selling 3.17% to state-run Vayupak Fund 1. Thai's second vice chairman and acting president Chakkrit Parapuntakul admitted that the airline had ceased to be a state enterprise under relevant laws, which have long hindered a thorough restructuring.
The slow collapse occurred in layers. Management was inconsistent as presidents and board members frequently came and went for political reasons. And employees were not blameless, taking advantage of executive mismanagement to feather their own nests.
It wasn't that the need for reform went unrecognized, just that efforts by past presidents, when they came, were inevitably cut short. Piyasvasti Amranand took the helm in October 2009 after serving as energy minister. Within Thai, he is still spoken of as the only true reformer, launching cost-cutting measures such as salary cuts for senior executives.
Despite helping the airline fill its deficit in 2009, directors suddenly voted him out in June 2012 in what was seen as a politically motivated ballot. His spouse was a senior member of the Democrat Party and the kingdom was under the premiership of Yingluck Shinawatra from then-rival-Pheu Thai Party controlled by her brother, the exiled former Prime Minister Thaksin Shinawatra.
Piyasvasti expressed exasperation at receiving no explanation for the apparent boardroom coup. "The performance of the company during my term has improved in every aspect," he said at the time.
Charamporn Jotikasthira, former president and chief executive officer of the Stock Exchange of Thailand, took the helm in 2014. But Charamporn's reforms faced a major revolt from the airline's union and made little progress. He ended up retiring in February 2017. Sumeth Damrongchaitham took over the position in September 2018, but resigned March this year in the middle of his tenure.
Unprofessional boards also did not help. After a military coup in 2014, a trend emerged when Air Chief Marshal Prajin Chatong, who later became a deputy prime minister in the junta, was appointed chairman. Five civilian members were purged and replaced with five Royal Thai Air Force officers.
The appointments marked an end to the management culture of only appointing technocrats to board management positions that Thaksin had introduced around 2001 and Yingluck abided by. Three air chief marshals are currently on the board and have no experience in running listed companies or restructuring loss-making airlines.
Unions are guardians of workers' rights, but employees at Thai are seen as overprotected. Salary increases are based on length of employment. "At times, senior captains were getting paid more than the president of the company," a former board member told Nikkei Asian Review.
At one time, the airline had 300 engineers reporting 8 hours overtime for all 365 days of the year, "which does not make sense," the former board member said. And, he added, when changes were introduced to reduce such compensation anomalies, staff were able to get around them through special allowances.
Thus, inconsistent management and overpaid, unmotivated workers spoiled the flag carrier's profitability. Thai reported a net loss of 12 billion baht ($376 million) in 2019, the third straight annual loss. Total shareholder equity was at 11 billion baht as of December 31, down 84.5% from the end of 2010, the last time it raised capital.
The coronavirus impact was so massive that the carrier could not report its quarterly financial results ending March on time. The Stock Exchange of Thailand granted a special extension until Aug. 14. But reports already say the net loss for the current fiscal year may balloon to as big as 60 billion baht, five times larger than last year.
The virus clearly shattered any business reboot hopes that Thai had. Its plan to open an aircraft maintenance yard in eastern Thailand fell into jeopardy after its partner Airbus missed a March deadline to submit a contract proposal. The two had agreed in 2017 to build a maintenance, repair, and overhaul facility -- a plan that may justify its long experience in maintaining a wide range of planes -- at U-Tapao International Airport in Rayong Province. But pandemic-induced uncertainty in the aviation industry prompted Airbus to back out from the 11-billion-baht project, said a senior official at Thai.
Compared with other Asian full-service peers, Thai was the worst-positioned by average passenger yield. Full-service airlines all experienced fierce competition with low-cost carriers, but Thai was hit harder compared to Southeast Asian rivals like Garuda Indonesia and Singapore Airlines. Thai's average passenger yield for 2019 was only half of Japan Airlines'.
Under rehabilitation unqualified board members will automatically be replaced. That leaves cushy employee perks as the last hurdle to overcome for a thorough restructuring and is where the 3% share sale will have a big effect.
Stripping Thai of its state enterprise status will terminate worker privileges, including the right to form a union, which was allowed under related state enterprise acts. Charamporn, when working on his reforms, complained of the limitations Thai faced as a state enterprise. "You cannot easily fire people," he said in an interview with Nikkei at the time.
Naturally, the union's reaction to rehabilitation is fierce. "Thai Airways is the national carrier and it shall remain only [that]," said Nares Puengyam, union president. The union said that creditors lent money based on Thai's status as a state enterprise, and the 3% divestment at a time of restructuring would make them lose faith.
But the 3% share sale to the state-run fund was a carefully calculated act. A majority of shares are still under the strong influence of the government, even as the state enterprise status was successfully stripped away.
Nares took a hard stance, vowing the union will "oppose to the end" the process. But when confronted with the government's decisiveness in completely overhauling the carrier, the union relented, saying it will not stand in the way.
"The Bankruptcy Court will appoint professionals to supervise its rehabilitation and restructuring in a professional way," said Prime Minister Prayuth Chan-ocha, who chaired the State Enterprise Policy Committee in deciding to send the airline to court-supervised rehabilitation.
Thai on Monday said that it has replaced four board members. Among the new ones is none other than Piyasvasti, the former president whose reform efforts were once blocked. Pailin Chuchottaworn, former deputy transport minister until December 2019, resigned the day after he was appointed, as Thailand's anti-corruption authority bans a cabinet minister from sitting on the board of a private company for two years after leaving the office.
Thai proposed on Wednesday that the current chairman, acting president and three new board members, along with consultant EY Corporate Advisory Services, be appointed as rehabilitation planners.
Earlier, a number of names had come up, including former president Charamporn as well as state enterprise executives such as Tevin Wongwanich, president and chief executive of state-owned resources producer PTT Exploration and Production, and Chartchai Payuhanaveechai, president of Government Savings Bank.
Nikkei Asian Review has learned that an invitation to join the planning team will also be sent to Chumpol NaLamlieng, currently an independent director of industrial conglomerate Siam Cement. After serving as the president of Siam Cement from 1993 to 2005, Chumpol joined British Airways as a director until 2009. These names still may contribute to Thai's rehabilitation.
Idle Thai Airways jets are parked on the tarmac at Bangkok's Suvarnabhumi Airport. The company became the first national flag carrier in the world to face court-sponsored bankruptcy rehabilitation amid the coronavirus pandemic. (Photo by Akira Kodaka)
The planners' overhaul proposal must be endorsed by a majority of creditors for it to be put into action by the executors. "The rehabilitation process can potentially be protracted and acrimonious," said Joseph Tisuthiwongse, a partner at Bangkok-based law company Chandler MHM. Layers of legal steps and the varied interests of concerned parties make it "unclear how Thai will emerge from the process," he added.
But the national flag carrier must emerge clean from rehabilitation to remain a trusted brand for Thais. Such a wrenching overhaul is not uncommon in the aviation industry, especially after a major economic or security shock. Japan Airlines filed for rehabilitation in 2010 and after scrapping over 60 money-losing routes and laying off one-third of its workforce, it returned to profitability.
Since 2000, United Airlines, Delta Air Lines, Northwest Airlines, US Airways, and American Airlines have all been overhauled after filing Chapter 11 bankruptcies. U.S. banks and investors were forced to pay the price through debt write-offs, while the airlines experienced massive restructuring. Thai's struggle may be signaling another global trend of aviation overhauls induced by the coronavirus pandemic.
Downsizing fleets and scrapping unprofitable routes should be on the Thai rehabilitation agenda. Reports said the plan will ask as much as 50% of its more than 20,000 employees to leave with a 10 months of salary as severance.
The plan is expected to involve requests for debt forgiveness to creditors. Local credit rating agency Tris Rating has downgraded Thai's company rating and its senior unsecured debentures to default on Wednesday. Investors -- including the Ministry of Finance -- will likely be required pay their share of the cost to ensure fairness through capital reduction or equity dilution.
"If Thai really reforms, the gravy train for many is over," said the source from the Prime Minister's Office.
Additional reporting by Marwaan Macan-Markar and Apornrath Phoonphongphiphat in Bangkok.
In 1997, Thai Airways became the only Asian airline to be among the five founding members of the Star Alliance, now the world's largest airline alliance. After more than a decade of poor financial performance and the impact of the coronavirus, Thai faces a major overhaul under Bankruptcy Court supervision. © AP
Thai Airways: pandemic delivers final blow to mismanaged carrier
Stripped of state protection, national icon faces drastic recovery overhaul
MASAYUKI YUDA, Nikkei staff writerMay 29, 2020 04:02 JST
BANGKOK -- These days, Bangkok's normally bustling main international airport feels like a museum dedicated to displaying Boeing and Airbus jets owned by Thai Airways International, with the national flag carrier's fleet largely grounded as the novel coronavirus pandemic paralyzes global air travel.
The mixed collection of Boeing 747-400s, Airbus A330s, Boeing 787-9s and Airbus A380s sitting silently on the tarmac or inside hangars at Suvarnabhumi Airport might appeal to aviation enthusiasts and photographers looking for a rare and dramatic shot. But the inertness of the fleet highlights not just the impact of COVID-19 but the airline's decades of financial inefficiency.
"Thai Airways troubles started in the 1990s when it decided to diversify and buy every type of plane that was being manufactured," said an airline industry insider in Thailand. Different models have different specs using different engines, the person told the Nikkei Asian Review, forcing the airline to train an army of engineers to keep the General Electric and Rolls-Royce engines flightworthy, inflating maintenance costs.
The inefficiency manifest at Suvarnabhumi is just one part of a history of mismanagement, corruption, and political interference that has now plunged the airline into overhaul proceedings. The kingdom's Bankruptcy Court on Wednesday accepted a petition from Thai, as the airline is commonly known, for rehabilitation under the court's supervision, with the first hearing scheduled for August.
A source in the Prime Minister's Office said that the coronavirus is what exposed Thai's underlying corporate culture and financial weaknesses. But for aviation analysts, the airline becoming the first national flag carrier in the world to go through legal rehabilitation was no surprise. The pandemic was simply the last straw that ultimately broke its wings.
CreditRiskMonitor, a New York-based credit research company, on March 11 named Thai along with Virgin Australia Holdings, Sweden-based SAS and Malaysia's AirAsia X as airlines with a risk of bankruptcy 10 to 50 times greater than the average public company. Of those, Virgin Australia entered voluntary administration -- equivalent to Chapter 11 bankruptcy in the U.S. -- ahead of Thai.
Ahead of the filing, the Ministry of Finance on May 22 trimmed its shareholding to 47.86 from 51.03%, selling 3.17% to state-run Vayupak Fund 1. Thai's second vice chairman and acting president Chakkrit Parapuntakul admitted that the airline had ceased to be a state enterprise under relevant laws, which have long hindered a thorough restructuring.
The slow collapse occurred in layers. Management was inconsistent as presidents and board members frequently came and went for political reasons. And employees were not blameless, taking advantage of executive mismanagement to feather their own nests.
It wasn't that the need for reform went unrecognized, just that efforts by past presidents, when they came, were inevitably cut short. Piyasvasti Amranand took the helm in October 2009 after serving as energy minister. Within Thai, he is still spoken of as the only true reformer, launching cost-cutting measures such as salary cuts for senior executives.
Despite helping the airline fill its deficit in 2009, directors suddenly voted him out in June 2012 in what was seen as a politically motivated ballot. His spouse was a senior member of the Democrat Party and the kingdom was under the premiership of Yingluck Shinawatra from then-rival-Pheu Thai Party controlled by her brother, the exiled former Prime Minister Thaksin Shinawatra.
Piyasvasti expressed exasperation at receiving no explanation for the apparent boardroom coup. "The performance of the company during my term has improved in every aspect," he said at the time.
Charamporn Jotikasthira, former president and chief executive officer of the Stock Exchange of Thailand, took the helm in 2014. But Charamporn's reforms faced a major revolt from the airline's union and made little progress. He ended up retiring in February 2017. Sumeth Damrongchaitham took over the position in September 2018, but resigned March this year in the middle of his tenure.
Unprofessional boards also did not help. After a military coup in 2014, a trend emerged when Air Chief Marshal Prajin Chatong, who later became a deputy prime minister in the junta, was appointed chairman. Five civilian members were purged and replaced with five Royal Thai Air Force officers.
The appointments marked an end to the management culture of only appointing technocrats to board management positions that Thaksin had introduced around 2001 and Yingluck abided by. Three air chief marshals are currently on the board and have no experience in running listed companies or restructuring loss-making airlines.
Unions are guardians of workers' rights, but employees at Thai are seen as overprotected. Salary increases are based on length of employment. "At times, senior captains were getting paid more than the president of the company," a former board member told Nikkei Asian Review.
At one time, the airline had 300 engineers reporting 8 hours overtime for all 365 days of the year, "which does not make sense," the former board member said. And, he added, when changes were introduced to reduce such compensation anomalies, staff were able to get around them through special allowances.
Thus, inconsistent management and overpaid, unmotivated workers spoiled the flag carrier's profitability. Thai reported a net loss of 12 billion baht ($376 million) in 2019, the third straight annual loss. Total shareholder equity was at 11 billion baht as of December 31, down 84.5% from the end of 2010, the last time it raised capital.
The coronavirus impact was so massive that the carrier could not report its quarterly financial results ending March on time. The Stock Exchange of Thailand granted a special extension until Aug. 14. But reports already say the net loss for the current fiscal year may balloon to as big as 60 billion baht, five times larger than last year.
The virus clearly shattered any business reboot hopes that Thai had. Its plan to open an aircraft maintenance yard in eastern Thailand fell into jeopardy after its partner Airbus missed a March deadline to submit a contract proposal. The two had agreed in 2017 to build a maintenance, repair, and overhaul facility -- a plan that may justify its long experience in maintaining a wide range of planes -- at U-Tapao International Airport in Rayong Province. But pandemic-induced uncertainty in the aviation industry prompted Airbus to back out from the 11-billion-baht project, said a senior official at Thai.
Compared with other Asian full-service peers, Thai was the worst-positioned by average passenger yield. Full-service airlines all experienced fierce competition with low-cost carriers, but Thai was hit harder compared to Southeast Asian rivals like Garuda Indonesia and Singapore Airlines. Thai's average passenger yield for 2019 was only half of Japan Airlines'.
Under rehabilitation unqualified board members will automatically be replaced. That leaves cushy employee perks as the last hurdle to overcome for a thorough restructuring and is where the 3% share sale will have a big effect.
Stripping Thai of its state enterprise status will terminate worker privileges, including the right to form a union, which was allowed under related state enterprise acts. Charamporn, when working on his reforms, complained of the limitations Thai faced as a state enterprise. "You cannot easily fire people," he said in an interview with Nikkei at the time.
Naturally, the union's reaction to rehabilitation is fierce. "Thai Airways is the national carrier and it shall remain only [that]," said Nares Puengyam, union president. The union said that creditors lent money based on Thai's status as a state enterprise, and the 3% divestment at a time of restructuring would make them lose faith.
But the 3% share sale to the state-run fund was a carefully calculated act. A majority of shares are still under the strong influence of the government, even as the state enterprise status was successfully stripped away.
Nares took a hard stance, vowing the union will "oppose to the end" the process. But when confronted with the government's decisiveness in completely overhauling the carrier, the union relented, saying it will not stand in the way.
"The Bankruptcy Court will appoint professionals to supervise its rehabilitation and restructuring in a professional way," said Prime Minister Prayuth Chan-ocha, who chaired the State Enterprise Policy Committee in deciding to send the airline to court-supervised rehabilitation.
Thai on Monday said that it has replaced four board members. Among the new ones is none other than Piyasvasti, the former president whose reform efforts were once blocked. Pailin Chuchottaworn, former deputy transport minister until December 2019, resigned the day after he was appointed, as Thailand's anti-corruption authority bans a cabinet minister from sitting on the board of a private company for two years after leaving the office.
Thai proposed on Wednesday that the current chairman, acting president and three new board members, along with consultant EY Corporate Advisory Services, be appointed as rehabilitation planners.
Earlier, a number of names had come up, including former president Charamporn as well as state enterprise executives such as Tevin Wongwanich, president and chief executive of state-owned resources producer PTT Exploration and Production, and Chartchai Payuhanaveechai, president of Government Savings Bank.
Nikkei Asian Review has learned that an invitation to join the planning team will also be sent to Chumpol NaLamlieng, currently an independent director of industrial conglomerate Siam Cement. After serving as the president of Siam Cement from 1993 to 2005, Chumpol joined British Airways as a director until 2009. These names still may contribute to Thai's rehabilitation.
Idle Thai Airways jets are parked on the tarmac at Bangkok's Suvarnabhumi Airport. The company became the first national flag carrier in the world to face court-sponsored bankruptcy rehabilitation amid the coronavirus pandemic. (Photo by Akira Kodaka)
The planners' overhaul proposal must be endorsed by a majority of creditors for it to be put into action by the executors. "The rehabilitation process can potentially be protracted and acrimonious," said Joseph Tisuthiwongse, a partner at Bangkok-based law company Chandler MHM. Layers of legal steps and the varied interests of concerned parties make it "unclear how Thai will emerge from the process," he added.
But the national flag carrier must emerge clean from rehabilitation to remain a trusted brand for Thais. Such a wrenching overhaul is not uncommon in the aviation industry, especially after a major economic or security shock. Japan Airlines filed for rehabilitation in 2010 and after scrapping over 60 money-losing routes and laying off one-third of its workforce, it returned to profitability.
Since 2000, United Airlines, Delta Air Lines, Northwest Airlines, US Airways, and American Airlines have all been overhauled after filing Chapter 11 bankruptcies. U.S. banks and investors were forced to pay the price through debt write-offs, while the airlines experienced massive restructuring. Thai's struggle may be signaling another global trend of aviation overhauls induced by the coronavirus pandemic.
Downsizing fleets and scrapping unprofitable routes should be on the Thai rehabilitation agenda. Reports said the plan will ask as much as 50% of its more than 20,000 employees to leave with a 10 months of salary as severance.
The plan is expected to involve requests for debt forgiveness to creditors. Local credit rating agency Tris Rating has downgraded Thai's company rating and its senior unsecured debentures to default on Wednesday. Investors -- including the Ministry of Finance -- will likely be required pay their share of the cost to ensure fairness through capital reduction or equity dilution.
"If Thai really reforms, the gravy train for many is over," said the source from the Prime Minister's Office.
Additional reporting by Marwaan Macan-Markar and Apornrath Phoonphongphiphat in Bangkok.
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