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Thai Airways Will Sell Off 42 Planes And Cut Workforce To Cut Down On Costs


11/03/2021


Thai Airways Will Sell Off 42 Planes And Cut Workforce To Cut Down On Costs
Forty-two planes would be sold off by Thai Airways International Pcl while roughly one-third of its employees would also be laid off, said the president of the restructuring committee appointed for the revival of the airline.
 
These measures would be taken up as a part of a strategy of the company to reduce its fleet and save on expenses so that it can become a viable venture.
 
Currently, the airline is undergoing a bankruptcy-protected reorganization as the airline has been in financial trouble even before the outbreak of the Covid-19 pandemic.
 
The planes that the company is selling off are outdated and inefficient, said Piyasvasti Amranand, who is the leader of this effort of restructuring the company.
 
The company will also return 16 leased planes, he stated.
 
The airline would be left with 58 planes of four different kinds after the deal.
 
Almost every year since 2012, Thai Airways has been losing money.
 
As travel returns in the coming months, plans of adding additional flights have also been drawn up by the airlines, Piyasvasti said.
 
Thailand was opened up on Monday by the government for quarantine-free travel for travelers who have been completely vaccinated against Covid-19.
 
Thai Airways would also be downsizing its workforce from 21,300 to 14,500 employees by December 2022 so that it can cut down on costs, according to Piyasvasti.
 
He said that by next year, the airline would finish a 25 billion baht ($749.18 million) loan deal with a number of financial institutions in order to boost its cash flow, while it is still negotiating with the government for another debt worth 25 billion baht.
 
For the half-year that ended in June, a profit of 11.1 billion baht ($332.63 million) was booked by the airline, primarily by reducing its expenses,  as the company rebounded from a loss of 28 billion baht for the same period the year before when the pandemic was at its peak and international traveling was virtually non-existent.
 
(Source:www.usnews.com)


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