For an airline whose primary market is tourism, a military junta and terrorist bombings definitely impact the bottom line. While those events have affected Thai Airways' financial situation, they are not the main problem. The real issue, according to its new president, is a decade of management chaos. The results being a 2014 net loss of THB15.57 billion ($441.5 million) on revenues ofTHB203.89 billion, following a THB12 billion loss in 2013. Passenger traffic dropped 12.5% to 19.1 million in 2014, while load factors dropped three points to 62.4% in 2014. The problem began with a steady erosion of the airlines profitability when its ecosystem started to change 10 years ago, according to Thai Airways president Charamporn Jotik-asthira. In an interview with ATW in Bangkok, Jotikasthira said that outside interference and changes in politics created an environment of decisions constandy changing. This, in turn, produced what he called a lot of silos: divisions within the airline with each silo just taking care of its own business.
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