Thread: Thai Airways: Chockchai appointed acting THAI president

Aircraft deal cost THAI head his job | Bangkok Post: news

Aircraft deal cost THAI head his job

Yingluck denies politics behind Piyasvasti firing

• Published: 23/05/2012 at 02:21 AM
• Newspaper section: News

The Transport Ministry says Thai Airways International president Piyasvasti Amranand was sacked because of a disagreement with the board over the multi-billion-baht acquisition of new aircraft for the national flag carrier.


Piyasvasti: At odds with THAI board

Transport Minister Jarupong Ruangsuwan said Mr Piyasvasti failed to see eye-to-eye with the board over the authorisation of the purchase.

Some seven years ago, THAI received cabinet approval to buy 75 new aircraft.

Under the plan, THAI expects to procure half of the fleet by 2018.

The minister said Mr Piyasvasti believed the THAI board and president had the authority to acquire any remaining aircraft after 2018 without seeking cabinet approval.

But the board disagreed and insisted that the programme must be tabled for cabinet approval, making Mr Piyasvasti's position untenable.

Mr Piyasvasti said he had submitted the aircraft procurement plan to the board for consideration, but it was concerned the purchase of the planes might affect THAI's financial position negatively.

The board then asked that the plan be sent to a risk management committee chaired by deputy transport permanent secretary Silapachai Jarukasemrat.

The committee resolved that the procurement plan should go ahead as it was established that the national carrier had the ability to cope with the financial risks.

The committee also urged the plan be adjusted and then submitted for cabinet approval, Mr Piyasvasti said, insisting he knew that ultimately it would have to go to cabinet. He said he and the board had agreed to act on the committee's recommendation for cabinet approval of the plan.

Meanwhile, Prime Minister Yingluck Shinawatra yesterday said there was no political interference in the removal of Mr Piyasvasti.

Ms Yingluck said the decision was made by the THAI board.

The members of the board, who were appointed during the last government, voted unanimously in favour of dismissing Mr Piyasvasti.

"There is no political interference in this issue and the government has no one in mind for the vacant position," the premier said.

"We should let the THAI board nominate the candidate."

Finance Minister Kittiratt Na-Ranong echoed Ms Yingluck, saying the government was not behind the dismissal of Mr Piyasvasti.

The decision to fire Mr Piyasvasti was at the discretion of the THAI board, Mr Kittiratt said.

However, Democrat Party and opposition leader Abhisit Vejjajiva believed an internal conflict was at play in the dismissal.

It was a shame that a capable person like Mr Piyasvasti had to be fired despite his many positive contributions to the THAI organisation, Mr Abhisit said.

Democrat list-MP Anik Amranand, Mr Piyasvasti's wife, said that her husband had only ever worked for the good of THAI and his removal from the post must have been politically influenced.The sacking could have resulted from the change in administration when the Pheu Thai-led government rose to power, she said.

Jamsri Sukchoterat, president of the THAI labour union, said it will submit a letter to THAI chairman Ampon Kitti-ampon today to ask him to explain to the airline staff why Mr Piyasvasti was sacked.

PM orders transport minister to explain decision to sack THAI president

PM orders transport minister to explain decision to sack THAI president

วันพุธ ที่ 23 พ.ค. 2555

PM orders transport minister to explain decision to sack THAI president Piyasvasti to labour union, believes issue will not escalate

Union wants answers on THAI axing | Bangkok Post: news

Union wants answers on THAI axing

Ampon gets deadline to clear air or stand down

• Published: 24/05/2012 at 01:45 AM
• Newspaper section: News

Thai Airways International's labour union is pressuring airline chairman Ampon Kitti-ampon to clarify the removal of president Piyasvasti Amranand or face an ouster bid.

Jaemsri Sukchoterat, the union chairwoman, said Mr Ampon needs to come up with an explanation that is better than Mr Piyasvasti having "communications problems".

She said THAI's operations under Mr Piyasvasti's leadership were satisfactory and the president passed his performance evaluation, so the reason given for his removal was not justified.

She said Mr Ampon has until tomorrow to clear the air over the issue, otherwise he will be considered unfit for the position.

On Tuesday, the Transport Ministry claimed Mr Piyasvasti had communications problems with the board over its authority to acquire aircraft. Mr Piyasvasti believed acquisitions could proceed without cabinet approval while the board saw otherwise.

Ms Jaemsri stressed the union was not resisting or objecting to the removal of Mr Piyasvasti and it has no objection to whoever will succeed him.

"The board has the authority to remove [the president], but its decision must be justified. Every policy of THAI comes from the board's decision-making. All financial decisions are made by the board. When a question arises, the board must answer," she said.

"If Mr Ampon wants to stay on as board chairman, he needs to clear all the doubts."

Ms Jaemsri yesterday lodged a petition with Prime Minister Yingluck Shinawatra in a bid to step up the pressure on Mr Ampon, who is secretary-general of the cabinet.

"The government has appointed him as the board chairman, so it has to take responsibility for his actions," she said.

Ms Jaemsri also dismissed as untrue criticism that the move is personal. She and Mr Piyasvasti were primary school classmates. "That we went to the same school has nothing to do with this. I am acting as the union president," she said.

Mr Piyasvasti said yesterday he could not make sense of the board's decision. He insisted he did not object to the board's new fleet acquisition programme.

He declined to say if the removal was politically motivated, saying Mr Ampon would know best.

Ms Yingluck said the government would leave it to the THAI board to clarify the matter. "The government is not in a position to clarify the issue because the THAI board made the decision. The decision was unanimous and we must respect it," she said.

She said the government would assign Transport Minister Jarupong Ruangsuwan to communicate with the union to ensure fairness and impartiality.

"There might be some misunderstanding, so I ask all sides to talk and I believe all Thai people have good intentions towards their organisation and the country," Ms Yingluck said.

She also urged the union to hold talks before making any move to pressure the government.

Meanwhile, THAI has appointed national police chief Priewpan Damapong and finance permanent secretary Areepong Areepong Bhoocha-oom as vice-chairmen of the board.

The new appointments, effective from Monday, were reported to the Stock Exchange of Thailand yesterday.

The exchange was also told that THAI has appointed Chokchai Panyayong, executive vice-president for strategies and business development, as acting president, also effective on Monday.

The national flag carrier reported the appointment of three members to its audit committee _ chairman Chulasingh Vasantasingh and committee members Weerawong Chittmittrapap and Chutinant Bhirom Bhakdi.

According to the report, the employment contract between the company and Mr Piyasvasti ends on June 21.

PT wants their hand in the deal, as part of their regular commissions

Thaksin and friends are back to the trough, as expected

Problems loom in wake of sacking at THAI - The Nation

Comment

Problems loom in wake of sacking at THAI

Achara Deboonme
The Nation May 25, 2012 1:00 am

Piyasvasti

Thai Airways International Chairman Ampon Kittiampon owes explanation to the general public over the board's decision on Monday and leaving the press conference to acting president Chokchai Panyayong will only worsen the sentiment.

THAI calls for a press conference today, to reveal the hidden reason behind the premature termination of President Piyasvasti Amranand’s employment contract. Ampon was expected to chair the event, but it was announced later that Chokchai would handle it. A source said that it could involve differing opinions of the board and the management over THAI's pending acquisition of 38 aircrafts.

It is unfortunate that Ampon, as chairman of the board, avoids meeting the press. Yet, wherever he goes, if Chokchai could not clearly satisfy the media, Ampon would be kept asking these three main questions.

Without the clear answer, he and other 13 directors would remain criticised as political appointees who do not serve state enterprises they supervise. More importantly, without clear answers, they are setting a poor new management standard for state enterprises as a whole.

The press conference will be held after the board unanimously agreed to dismiss Piyasvasti, who would complete his term in less than a year. The premature dismissal resulted in a compensation of Bt5.94 million that THAI must pay to Piyasvasti.

Rumour has it for some time that he would be dismissed after Pheu Thai Party formed the government, but the possibility was in doubt as Piyasvasti took office in October 2009 during the Democrats-led government under a special term to ensure no political meddling. He is entitled to a compensation package worth 6 months of salary in light of premature dismissal, and he is subjected to similar compensation if leaving before the term ends. More importantly, Piyasvasti, the second outsider chief, has won respects from employees and investors over his strategies that financially revived THAI and sustain the airline's growth amid fierce competition and higher fuel prices.

Given Piyasvasti's 31-month track record, "Lack of unity in communications with the board" sounded a lame reason to back the board's decision on Monday. Thus, here is the first question for Ampon: What's the exact meaning of the reason? Or is this just a reason to back a politically-motivated action?

If it is not to back a politically-motivated action, this will lead to the second question: What’s the weight of "communications with the board" in the key performance index (KPI) for Piyasvasti? Given Ampon's reason on the day, it seems state enterprises' bosses now have to take it as a priority to forge efficient communications with the board of directors - mostly constituting of political appointees, rather than the performance.

It is true that state enterprises are set up to implement the government's policies. State-owned banks are designed to accommodate the government's grand economic policies. PTT's mission is to ensure energy security. Set up in 1959, THAI's objective is to safeguard domestic sky and compete against foreign players in the international skies.

Through the long history, THAI has welcomed 15 presidents. As witnessed, some presidents who answered only to the board not the overall benefits of the airline had led the carrier to the abyss. At one point, without the government's loan guarantee, THAI could not seek financing for its own aircrafts.

Given the long history of such inefficiency, is Ampon serious in putting "communications with the board" before the airline's performance? Without clear KPI on how to evaluate the communications efficiency, it seems he is setting a precedent cause for the THAI board in the future as well as the boards of other state enterprises on how to sack capable chiefs.

Lack of explanation led to the third question involving the appropriateness of the board's decision to sack Piyasvasti and pay him the compensation.

As it seems Piyasvasti displeased only the board of directors, not other stakeholders who range from employees, stock investors and the general public through the 2 years and 7 months in office, why THAI - which also belongs to other stakeholders - have to shoulder the extra cost?

The amount is tiny, compared to the Bt6 billion earning target this year. But if a tiny pay can be made without a good reason, who can guarantee that it would not lead to something bigger? In time, this will ruin THAI's image. History showed that as THAI leaders were irresponsible for stakeholders' interests, it was not only them that were punished. When THAI showed losses, other stakeholders including taxpayers suffered.

As Piyasvasti is leaving, the first sign of old bad things at THAI emerged. Agreeing to benefits cuts to assist Piyasvasti's goal in turning around the airline, the labour union is now pressuring for the return of all benefits. It is not difficult to imagine that without a frugal boss like Piyasvasti, soon we have heard about lavish meals served during the board's meetings. More are to come when corporate governance is breached.

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Former PTT head tipped for top Thai Airways post

• Published: 25/05/2012 at 01:44 AM
• Newspaper section: News

Former PTT CEO Prasert Bunsumpun is tipped to take over as president of Thai Airways International, says a source close to Prime Minister Yingluck Shinawatra.


Prasert: Rumoured as frontrunner

He said that Mr Prasert has the best chance of snaring the job.

"We need an expert to help THAI manage risks in our energy hedging plan," the source said.

Oil accounts for 38% of THAI's operating costs.

However, he acknowledged that Mr Prasert's age does not meet the eligibility requirements for the post. Anyone nominated as THAI president must not be over 58 years old.

Mr Prasert, 61, retired as CEO and president of PTT Plc late last year.

The source also denied reports that Somprasong Boonyachai, chairman of the executive committee of InTouch Group, founded by ousted prime minister Thaksin Shinawatra, is also a prospective candidate for the seat.

"Personally, I don't think he is qualified for the job. More importantly, he's too close to Thaksin, and that can lead to criticism," he said.

Mr Somprasong yesterday said he had not yet received any contact from anyone regarding the post.

A committee selecting the THAI president to replace the outgoing president Piyasvasti Amranand will finalise a shortlist of names over the next two months, Areepong Poocha-um, permanent secretary for finance, said.

The selection committee comprises himself, the permanent-secretary for transport, the director of the State Enterprises Policy Office, and a representative from THAI, he said.

"Finding a new president for THAI is an urgent matter, so the committee will screen potential candidates for the THAI board to consider over the next two months," Mr Areepong said.

He said THAI's operating loss last year resulted from a combination of factors such as a slowdown in the world economy, the floods, and stiff competition from no-frills airlines.

"Overall, the number of tourists increased by 1 million last year. But the floods, the euro zone crisis and tight competition from low-cost airlines hit THAI's profits," Mr Areepong said. "All this points to the need for THAI to significantly improve its business strategy."

The THAI board decided to sack Mr Piyasvasti on Monday, citing communication problems with the board.

Ampon Kitti-ampon, the THAI board chairman, yesterday said he hoped arguments about the board's decision to dismiss Mr Piyasvasti would end after he discloses details behind its decision today.

Mr Ampon said he would release minutes of the board meeting held on Monday, which should explain what happened. The THAI labour union has given Mr Ampon until today to clarify the reasons for the dismissal, or face a concerted push to have him leave the job.

House hears explanation on sacking of Piyasvasti | Bangkok Post: news

House hears explanation on sacking of Piyasvasti

• Published: 15/06/2012 at 08:41 AM
• Newspaper section: News

Thai Airways International chairman Ampon Kitti-ampon has reiterated that the THAI board decided to sack the airline's president because of "communications problems".


Ampon: firing result of procurement row

Mr Ampon was explaining the board's decision to dismiss Piyasvasti Amranand to a parliamentary committee on transport yesterday.

He said the dismissal was approved by the board and was in line with Mr Piyasvasti's employment contract.

He told the committee that the main reason for the dismissal was a lack of communications over a plan to procure aircraft between 2011 and 2022.

He referred to Mr Piyasvasti's proposal in March for the airline to order 12 planes without seeking cabinet approval.

The board disagreed with the proposal and had wanted to postpone the acquisition because it feared the procurement would affect the financial status of the airline, which posted a loss of 10.19 billion baht last year.

Mr Ampon said the aircraft acquisition proposal was carefully considered by the airline's risk management committee.

The THAI board sacked Mr Piyasvasti on May 21. It attributed its decision to communication problems and later to a plane procurement conflict.

Thirteen members of the 15-member board were present at the meeting, during which 12 of them voted to dismiss Mr Piyasvasti.

Union president Jaemsri Sukchoterat said it was obvious Mr Piyasvasti had not opposed the board's resolution that the aircraft procurement programme must be tabled for cabinet approval.

She said Mr Ampon failed to explain the real reason behind the sacking and said the union will continue its call for Mr Ampon's ouster as THAI chairman.

Piyasvasti wins THAI sacking fight
Amornrat Mahitthirook
24/04/2014

Former Thai Airways International (THAI) president Piyasvasti Amranand has won a court battle with his former firm over being unfairly sacked from the post.


Then-THAI president Piyasvasti Amranand, right, joined then-board chairman Ampon Kittiampon in introducing Thai Smile airline in April 2012 before he was sacked in June.
(File photo by Apichart Jinakul)

Mr Piyasvasti said he was informed by the Central Labour Court on Thursday about the ruling, which found no grounds for the airline to terminate his employment contract.

The court ordered the company to pay him 1 million baht in compensation for the dismissal, he added.

The THAI board axed him in June 2012, citing that he proposed that the firm buy 12 planes in March by bypassing cabinet approval.

The board opposed the plan for fear that the proposed purchase would add more financial burden to the airline.

But the court said Mr Piyasvasti only made a comment on the proposal in a board meeting and that was not sufficient for the company to end the contract.

"I think my case will set a precedent for executives of state-owned enterprises to be aware that they can seek justice to protect their rights in the Labour Court," he said.

Acting THAI president Chokchai Panyayong confirmed the ruling and said the company will appeal the case to the Supreme Labour Court.

THAI will pay him only when the case is finalised, he added.

Thai Airways International Labour Union president Damrong Waikhanee said union members will press for the board, not the company, to take financial responsibility for the payment to Mr Piyasvati at a meeting of shareholders on Tuesday.

The union will renew its demand for Ampon Kittiampon to resign as a board member and oppose his return to the airline as the decision to sack Mr Piyasvasti was made when he was the board chairman.

Mr Ampon was absent from the board meeting when the board members decided to terminate Mr Pivasvasti's contract.

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