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Friday 9 July 2021

Forensic study on Thai Airways reveals a lot

Sun Tzu said: “Disorder came from order, fear came from courage, and weakness came from strength.” To my mind the best illustration of his paradigm is Thai Airways which started in 1960 as a well-designed organisation moving forward courageously in the contested air travel with moral and material strength, taking the contrarian direction finally. Forensic study unearths major pitfalls: 

Here are the highlights of the forensic study of Thai Airways referred to by its ICAO code as TG that hovering around the topic of business manoeuvre within and without: 

1. Justin Hayward of Simple Flying reports (Here)There are allegations that at least 26 staff have faked their own death to claim significant funeral pay outs from the airline. This is even more alarming as these claims could have been made as early as 2013, and the staff continued to work for the airline.

2. In 2005, TG wanted to add long- distance travel to her travel schedule. Configuring one of the world’s longest non-stop flight from Bangkok to New York, a move that was praised as best business manoeuvre at that time, TG ordered 10 A 240 gas-guzzling planes to operate this flight. Well and good, except for two failings: the cost of fuel was drowning so was the maintenance cost. What was alarming is below the table transaction made between concerned parties that greenlighted this purchase.

3. Malpractice was so deeply entrenched that cost of running the airline became overburdening.  At administrative level employees wont to make fictitious claims of working hours. A hilarious incident was found out when an employee fudged his overtime claim as 419 days in a calendar year of 365 days. You know what happened? The claim was duly paid.

4. In addition to frauds related to purchase of planes and parts thereof, something sinister was going on for quite some time. The repair and maintenance division artificially increases the cost sheet per work order and employees there, pocketed the difference often sharing the loot among fellow men amicably.

5. Public outcry over the worst scandal of TG happened when Rolls Royce admitted in a statement in 2017 that it paid pounds sterling 671 million as inducement to government and TG officials regarding the purchase of RR T800 engines for aircrafts.

 

Cheers! 

 

Muthu Ashraff Rajulu

Business Strategist

Mobile: + 94 777 265677

E-mail:   cosmicgems@gmail.com

Blog:   Business Strategist

 

 

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