THAI Soars 13% to ฿10.20, Highest in One Month, in the Response of the Recovery Plan!

The share price of Thai Airways International Public Company Limited (THAI) rose ฿1.20/share or 13.33% to close the morning session at ฿10.20/share with a trading value of 112 million baht. The highest share price of the morning session was 10.40/share and the lowest was 9.00/share. THAI’s share price has risen the highest in one month.

 

Earlier, Mr. Sumeth Damrongchaitham, President of Thai Airways International Public Company Limited (THAI) has made a statement after THAI reported a deficit in the second quarter of 2019 financial statement, introducing strategies to lower expenses and heighten revenue amid global crisis such as baht appreciation, trade war between the U.S. and China, economic slowdown and the closing of Pakistan airspace which led to lower passengers and demand as well as the delay of maintenance, causing an insufficient aircraft in operation.

Even though the company had used the lowering expenses strategies in the previous quarter, but with the external factors, it is unavoidable to face a deficit as well as other airlines.

Thus, Mr. Sumeth has come up with new strategies to make a turnaround possible for THAI, which are:

1) “SaveTG Co-Creation” is an expense-saving strategy that allows all departments and employee of all positions to send feedback to THAI’s executives.

2) Zero Waste Management will save while creating a circular economy, starting from food waste.

3) A new strategy in 4Q19 to penetrate the market by opening a new direct route to Sendai, a city in Japan with beautiful scenery of the Tohoku region.

4) Using digital marketing as one of the strategies to increase revenue by announcing THAI’s promotions through all channels in order to acquire an online customer base. The Thai Airways mobile application will allow customers to book, search for flights and promotions along with introducing special deals and benefits for THAI’s customers.

The application will also offer customers to add additional weight for baggage, issue travel insurance, airport limo, car rent, hotel service, etc. In addition, more languages will be added as well as a new look of the application for a better impression.

The company has also made a deal with eCommerce Vendor, who is familiar with an eCommerce business with the world’s leading airlines, to help THAI create an online marketing project. The project is expected to be launched in October 2019.

5) THAI Synergy is the strategy of THAI looking for potential allies very soon, such as the domestic and Asia region expansion of Cafe Amazon.

6) TG Group strategy. THAI aims to cooperate with Thai Smile Airlines in order to focus more on regional flights in 4Q19 while targeting to promote Thai Smile as a Connecting Partner in Star Alliance within 2019.