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Saturday, January 28, 2023

Thai Airways aiming to recover 25 billion baht by reducing staff

The Cabinet acknowledges the progress of the rehabilitation plan of Thai Airways International Plc. to borrow 25 billion baht by reducing the number of additional employees.

On March 1, 2022, Deputy Spokesperson for the Prime Minister’s Office, Ms. Ratchada Thanadirek, announced that the Cabinet acknowledged the progress report of the Monitoring Committee related to the economic problems of Thai Airways International Public Company Limited.

These are the main steps to be implemented following the business rehabilitation plan. 

  1. Adjust the fleet by reducing the number of old, inefficient, or cost-effective aircraft from 116 to 58. 
  2. Restructuring the company’s business by reducing the personnel costs by 23,100 million baht per year compared to 2019
  3. To cut down the organization size from the management level to the operational level to 15,200 people.
  4. Implementation of business reform initiatives especially projects to reduce expenses and increase revenues.
  5. To transport and distribute goods and food other than in-flight food. 
  6. Plan a network of routes to major cities in each region through cooperation with partner airlines connecting flights.
  7. To elaborate a plan of selling real estate in Thailand and abroad. Although, to sell aircraft that the company does not wish to use.
  8. Accelerate the acquisition of new loans, which must be supported to be used to maintain liquidity in the fiscal year 2021-2022
  9. To elaborate a strategy to restructure debt according to the rehabilitation plan framework. Thai Airways International Co., Ltd. has extended the repayment period.

Ms. Ratchada said that Thai Airways International Public Company Limited has accelerated financing with new loans of 25 billion baht from financial institutions.

The airline said last year’s operating loss was down 44% from the previous year but revenue from operations fell by 51% from 2020 to 23.75 billion baht.

Income from passengers and cargo decreased by 59.9% to 24.60 billion baht.

Operating expenses were 43.45 billion baht, down by 48.2%.

Apart from asset sales, the 81.52 billion baht revenue from one-time transactions included income from debt restructuring, the sale of investments, and restructuring and downsizing. 

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