Thai Airways boss loses authority in face of financial losses

BANGKOK, June 26 (TNA) - Thailand's national flag carrier Thai Airways International (THAI) on Thursday relieved the airline's president of his duties, but not his employment, putting in his place a subordinate who has assumed responsibility for management of the company.
THAI's board met Thursday, Board Chairman Chaisawat Kittipornpaiboon announced that Apinan Sumanaseni would remain president of the carrier but is relieved of his management duties effective Friday.
Named to succeed Mr. Apinan in function, if not title, Mr. Chaisawat said the board had appointed Lt. Norahad Ployyai, THAI vice president, to take over all management responsibilities while Mr. Apinan would look after only "general activities".
Lt. Norahad was a classmate of former prime minister Thaksin Shinawatra.
The board chairman claimed the company had been facing financial woes and the president's style of management failed to live up to board expectations and caused division within the company.
The airline posted a 47.6 per cent drop in its net profit in the first quarter of 2008, due to high fuel costs and the rising strength of the baht currency.
Meanwhile, THAI's Labour Union leader Chamsri Sukchoterat said the union disagreed with the move as it was not a solution to mounting problems. In addition, Lt. Norahad Ployyai was closely connected to Mr. Thaksin.
The Union will lodge a complaint on the issue with the prime minister, the finance minister, the House Speaker and the Senate Speaker.
The THAI board chairman denied the change was politically motivated.







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