THAI's cost-cutting plan calls for sale of 30 properties
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Thai Airways International is selling properties overseas and in Thailand, as part of its rehabilitation plan that sets to turn around the loss-making airline.
THAI President Charamporn Jotikasthira told reporters that some of the 30 target properties are used as office while the rest as staff accommodation. Nineteen of them are in foreign countries.
"The plan is ready for the board of directors' consideration in September," he said, adding that the sale is to reduce the operating cost.
He did not reveal the combined value of the properties. Among the first lot to be sold, comprising 3-4 properties, is the office in Sydney, Australia.
He added that under the business rehabilitation plan, implemented in January, the company has cut the operating cost by 6 per cent. Yet, this is still far from the 20 per cent target, to be achieved in 18 months.
Nevertheless, he saw a brighter future in turning around the national airline, reflecting through the Bt51 billion revenue in the first quarter of this year. The amount was Bt16 billion higher than the same period a year earlier.
His aim is from January 2016, THAI will start record monthly operating profits.
