Strategic Optimization &
Execution
Thai Airways International is one of Asia’s leading airlines, operating out of Bangkok, one of the aviation hubs of Asia and one of the world’s most popular tourist cities. Its founding partnership with SAS in 1959 was one of the earliest airline alliances ever signed. After the first flight on May 1, 1960, passenger volumes have increased tremendously, contributing to THAI’s 45th consecutive year of profitable operations in 2005. More than 15 million passengers have experienced its Royal Orchid Service across 73 destinations in 35 countries. Within Asia, it flies to more countries than any other airline, with convenient connections throughout Asia.
2004 proved to be a year of operational fluctuation, as a barrage of external factors impacted on the airline throughout the year. Among these were :
- Escalating fuel prices,
- War in the Middle East,
- The SARS crisis,
- Bird Flu epidemic,
- Intense competition in commercial aviation as the result of air traffic liberalization policies and aggressive marketing activities from low cost carriers.
- We developed a comprehensive Optimization program focusing on the followings:
– Cost Management
– Customer Satisfaction
– Optimal Network Management
– Safety
– People - We started with executive mobilization and continued cascading through to implementation to its Business Units and Support Units.
- Strategy Maps were developed with the Executive team to provide better focus on the strategy
- The Strategy maps & initiatives were also cascaded to 12 other Business Units/Support Units within an 8 week period
- With this cascading THAI was able to develop strategic alignment and create synergy within the units.
In 6 months the following results were achieved:
Financial Perspective
Cost Management via various initiatives eg:
- Fuel Management – savings of 150 Million THB
- Integration of Strategic planning & budgeting
Customer Perspective
- Customer Satisfaction Index average 3rd party ranking rose to 85%
Internal Process Perspective
- Optimized Route Planning – Improved hub density to an average of 25.3
Learning & Growth Perspective
- Customer Oriented Organization – 90% of the front-line staff surveyed has had a mindset shift from a product-oriented culture to customer-oriented culture.
Others :
- The BSC has brought clarity and focus to organizational priorities
