Tuesday, 02 January 2024 12:17 GMT

Thai Airways CEO Fired Over Baggage Crisis In Bangkok


(MENAFN- Bangladesh Monitor) Dhaka: Thai Airways International (THAI) has removed Chief Executive Officer Chai Eamsiri with immediate effect after a week of flight disruptions and a severe baggage backlog at Bangkok's Suvarnabhumi Airport, caused by flooding.

Local media reports said the airline's board made the decision at a special meeting on October 2. Board Chairman Lavaron Sangsnit appointed Director and Executive Committee Member Samrit Samniang as acting CEO. Chai will stay on as a director while a fact-finding investigation into the disruption is conducted.

Heavy rain and flooding hit Bangkok and nearby provinces from September 25. Many of THAI's ground-handling staff could not report for work because their homes were flooded or because they stayed to protect their families and property, even after the airline sent vehicles to collect them.

The shortage of staff quickly disrupted baggage handling, flight operations, and ground services at Suvarnabhumi, the carrier's main hub. On September 28 alone, 34 THAI flights were delayed. Bags from 52 flights operated on September 26 and 27 had not been sorted and delivered two to three days later.

Chai said the airline was hit harder than other carriers because Suvarnabhumi is its busiest base and THAI also handles ground services for partner airlines. He apologized publicly and said the airline "offers no excuses."

To clear the backlog, Airports of Thailand arranged extra manpower from the Royal Thai Air Force, other military personnel, and Thailand Post, who helped deliver bags directly to passengers' homes and hotels. THAI also shifted part of its third-party ground-handling work to other providers and expanded its call center from two lines to 24.

On September 30, Tourism and Sports Minister Surasak Phancharoenworakul inspected the airport and urged THAI executives to consider resigning if they were unwilling to resolve the crisis, saying it was damaging Thailand's image.

He accused the airline of assigning its limited ground staff to partner airlines to avoid contractual penalties, leaving its own passengers without enough support. Local media carried similar reports. The minister also criticized how the airline coordinated with the soldiers sent to help, arguing they were not provided food or accommodation.

Surasak and Deputy Transport Minister Siripong Angkasakulkiat both called for an urgent board meeting. The Finance Ministry is THAI's largest shareholder.

To stabilize operations, the airline cut its schedule further, canceling 15 flights on October 1 and nine on October 2. It plans to resume full operations on October 3.

The board cited persistent operational failures, including flight delays, baggage handling problems, and wider ground service breakdowns. Chai now faces two internal investigations.

The first examines the operational breakdown, including concerns that ground and cargo work was outsourced through several layers of subcontractors. The second concerns the purchase of about 860,000 bottles of in-flight wine from a single supplier, worth more than THB 800 million, equivalent to USD 24 million.

The airline said it will review its management structure and its employment arrangements for ground and warehouse staff to prevent a recurrence.

Chai told local press he had not been given a clear explanation for his removal. He said the non-executive directors continued the meeting without him and that he learned of the decision before returning to the room. "I found out from the news," he said.

He stressed that the removal came as operations were nearly back to normal, with most of the baggage backlog expected to be cleared within two days. He declined to say whether internal politics played a role.

Chai, who has worked in the industry for 41 years, rose through THAI's finance function. He became Chief Financial and Accounting Officer in 2021 and chaired the airline's former subsidiary, Thai Smile Airways, from 2023 to 2025.

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