Sumeth set to take the top spot at THAI
The board of Thai Airways International Plc (THAI), the flag carrier of Thailand, has tentatively named Sumeth Damrongchaitham president two years after the retirement of its former head.
The board meeting on Saturday also assigned its remuneration subcommittee to negotiate employment conditions and salary before proposing it to the board for approval.
Mr Sumeth, 53, is a managing director of state-owned property company Dhanarak Asset Development Co, a unit of the Treasury Department. He was also chief operating officer of music and entertainment group GMM Grammy Plc.
Krittaphon C Chantalitanon, vice-president for the alliance and commercial strategy department, said the appointment of the new president should be completed this year.
He said additional negotiations and the date for the final decision will depend on the president’s remuneration subcommittee, which will forward its decision for the board’s approval.
“The company should have someone to take the top post and run the business,” said Mr Krittaphon.
He said the airline has many strategies and business plans moving for ward, including a plan to purchase 20 new aircraft. The airline is likely to purchase 10 Boeing and 10 Airbus aeroplanes.
“We are open to both [firms] as they have comparable products,” he said.
Mr Sumeth’s selection is the culmination of a search that began in September 2016 after Mr Charamporn retired.
Usanee Sangsingkea, vice-president of the aviation business unit, has served as acting president, while the airline has struggled to find a qualified replacement.
If Mr Sumeth is appointed, he will take control of an airline struggling for growth in an environment of high fuel costs and competition from low-cost carriers.
Thai Airways reported a 14% drop in net profit for January-March after booking a loss for 2017.
Investors and analysts said potential candidates may have been deterred by the airline’s lack of independence. THAI’s board is comprised of civil servants and former members of the air force.
Amnart Ngosawang, an analyst at KTB Securities Co, said as Thai tourism has continued to grow, domestic and regional airlines have expanded their networks both locally and regionally. Some full-service foreign airlines have spread their wings into Thailand, intensifying the competition.