More staff reductions planned for Thai Airways

March 22, 20168:00 am434 views

THAI AIRWAYS International plans to trim more staff this year to stop the financial bleeding.
“The company has set a budget of Bt2.2 billion for the new cost-cutting plan,” Narongchai Wongthanavimok, chief financial officer, said yesterday.

There is still no targeted number nor time frame for this round, but it should begin in one or two months.

Last year, the national carrier laid off 1,401 employees and spent more than Bt3.7 billion on the staff-reduction programme.

Management will ask each department to reveal its business plan along with resource management and any surplus that needs to be eliminated.

The airline posted a consolidated operating loss of Bt13.0 billion last year, although the final quarter showed a net profit of Bt5.4 billion.

A major factor for the improvement was an 11.2-per-cent reduction in expenses, resulting from rigid cost controls.

The company is also selling up to 30 properties at home and abroad, such as office buildings and staff accommodation, to slash operating costs.

The airline’s new agent management and online reservation system will be ready next month. It is designed to be more user-friendly and more efficient for real-time ticket booking.

The airline will finalise its fleet management by the end of this month.

Fleet management is based on the airline’s rehabilitation plans. These plans are 70 per cent complete.

THAI’s executive board met yesterday to reveal the progress of its business and revitalisation plans. All the progress will be reported to a rehabilitation committee on April 17.

By October, the airline will resume Moscow flights to cash in on the tourism high season. It expects to return to the United States next year.

It will also add routes or increase frequencies to Asean countries this year.

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