I would like to extend my warm wishes to our shareholders, customers and patrons. I am proud to be part of THAI, this world-renowned organization that has made significant contributions to promoting Thailand and the unique Thai identity to the world for the past 55 years.
I am well aware of the challenges from both external and internal factors that have continued to affect the Company's performance, preventing THAI from achieving its goals. However, THAI is built on a solid foundation of knowledge and well-equipped with experienced and competent staff, therefore, initiation of suitable strategies and business developments will enable THAI to regain its position as a leading organization.
Following my appointment as the President of THAI in December 2014, I could see that there were opportunities for THAI to improve and develop despite the problems of organizational structure and management practices, radical change was needed. The application of the uniform business approach employed during the past few years cannot continue as THAI's performance has remained stagnant, at the mercy of external factors. The Board of Directors unanimously agreed upon the need for a "big change" which means THAI must undergo an urgent transformation. Careful studies were conducted to identify various problems affecting THAI, and the THAI Transformation plan was drawn up in the latter part of the third financial quarter. The plan was completed in December 2014, and approved by the State-Enterprise Policy Committee at the end of January 2015. I am confident that this will help THAI resolve the problems in a sustainable manner.
THAI's reorganization plan covers three stages. The first stage is to prevent any further losses. The second stage is to focus on strengthening the Company's competitive business advantage; and the third stage is to build long-term sustainable growth. The Transformation plan also includes revenue generation, rigorous financial disciplines, customer service improvement and human resource development. Six strategies were outlined to achieve the goals set in the Transformation plan: 1) Improving airline network strategy by reducing the number of loss-making routes and enhancing those with profit-making potential; 2) Fleet improvement through reduction of aircraft types and models to increase operational efficiency; 3) Improving commercial operations by increasing revenues from sales via different channels, expansion of customer groups and improved Internet sales including comprehensive service improvement; 4) Improving operations and costs to help enhance operational efficiency, controlling costs and expenses; 5) Improving human resource management by restructuring the organization to be compatible with the size of business, including developing and promoting employee potential, and creating a remuneration scheme to correspond with the Company's performance; 6) Managing business and operations of subsidiaries and associated companies in accordance with, and supportive of, the core business operations. These six strategies will be driven through the 18 main initiatives. Each initiative has a leader to facilitate the actual implementation. The Transformation Plan will further increase efficiency in the service quality and safety standards.
The success of the THAI Transformation requires concerted efforts and cooperation from all THAI employees. Therefore I have continued to place special emphasis on the importance of communication between the management and employees, building better understanding of the need for the transformation, the plan, and possible impact on all the stakeholders while creating better understanding and building confidence in THAI's operations among THAI investors.
By working with THAI's Board of Directors and meeting with THAI staff from various departments during the past three months, I am confident that THAI will be able to move forward into the future with employees' loyalty and willingness to collaborate at the helm of the Company's success. Additional implementation is needed for adjusting business operations to be in line with the restructuring plan, and promoting collaboration and teamwork to ensure the success of THAI's Transformation plan.
On behalf of the Management and staff of THAI, I would like to thank the Company's shareholders, customers and patrons for their confidence and unwavering support for THAI. The Company is undergoing a big change and moving towards sustainable growth in the future, and will continuously create satisfactory returns for all the stakeholders. I strongly hope that THAI will continue to garner support from all its patrons.