The plan calls for THAI to shed 20 per cent of its employees. The carrier also says it will make decisions on whether to keep flying from Bangkok to Los Angeles, Madrid and Moscow in the near future. Management scrapped Bangkok to Johannesburg services two weeks ago.
Other routes that may be axed later this year include those from Bangkok to Rome, Sapporo and Brisbane. Flying less routes will also enable THAI to streamline its fleet and the master-plan calls for 36 of its older aircraft to be either sold off or decommissioned.
The restructuring process will also see THAI sell its 39 per cent stake in Nok Air as well as its shares in hotels including the Amari Airport and the Novotel Suvarnabhumi Airport. The airline’s management outlined the cost reduction and downsizing plan to the Thai cabinet on Monday.
The Enterprise Policy Committee has agreed to the measures and is said to be ready to give the green light once the smaller details have been ironed out. THAI has incurred operating losses averaging THB12 billion per annum over the last few years.
Thai Airways to cut routes and workforce
News in Asia
The management of Thailand’s national airline have formulated a plan to cut operating costs and reverse its spiralling annual losses. The cost-cutting measures will see Thai Airways’ 25,000-strong staff downsized and loss-making routes axed.