President Apinan sidelined

The board of Thai Airways International (THAI) has demoted president Apinan Sumanaseni with immediate effect, a move that raises concern over resurgent political intervention in the national carrier.

Although maintaining the title of president, Apinan was immediately transferred to oversee non-management issues. The board yesterday also appointed executive vice president Norahat Phloiyai as co-president.

Transport permanent secretary Chaisawat Kittipornpai-boon, as chairman of THAI, said there had been many internal management problems since Apinan took up the post. A management reshuffle is also necessary, due to business uncertainties springing from skyrocketing jet-fuel prices and higher operating costs.

"The board is not satisfied with his performance," said Chaisawat, adding that Norahat's long service at THAI should relieve the problems. He insisted the decision was not politically motivated and added that Norahat's performance would be evaluated.

Democrat MP Juti Krai-rirk yesterday accused the government of intervening in THAI by appointing the new co-president.

"The new president attended pre-military school in the same year as the former leader of a major political party. Now, I want all parties to take a close look at THAI's aircraft purchases and the bid for THAI Kitchen's management contract. This may entail corruption," he told Parliament yesterday.

THAI labour-union chief Chamsri Sukchotrat said politicians were again intervening in the company and that this would bring many problems like it did six years ago, when the Thaksin Shinawatra government appointed several outsiders to the board.

"During the Thaksin government, corruption was rampant," she said.

"THAI lost Bt1 billion for a wrong order for onboard equipment filed by an outside director. Many other decisions made by the previous board were wrong, so we urged management to be careful of further moves," she added.

In the statement, the union also urged management to reduce privileges given to influential people, mostly politicians and their relatives and fellow colleagues. The union plans to submit a petition to Prime Minister Samak Sundaravej, as well as the House Speaker, the Senate and several ministries.

Apinan said earlier that THAI's revenue would fall short of this year's Bt210-billion target. To cope with higher fuel prices, the company has implemented a reduction of flight frequencies, rerouted flights, particularly for its US operations, and installed other cost-cutting measures. As a result, service to New York will be suspended next Tuesday.

The demotion of the THAI president will not affect the company's share price, because the price has already been low, due to rising oil prices, said an Asia Plus Securities analyst.