National airline to downsize and reduce routes
The State Enterprise Policy Committee has approved in principle Thai Airways International's rehabilitation plan, which was discussed in a meeting on Monday chaired by the prime minister.
Measures will include a reduction of the airline’s staffing by 5,000 and cancellation of its non-performing routes.
THAI is one of even troubled state enterprises. In the first nine months of 2014, the airline suffered losses of Bt9 billion. It recorded a loss of Bt12 billion in 2013.
THAI is one of even troubled state enterprises. In the first nine months of 2014, the airline suffered losses of Bt9 billion. It recorded a loss of Bt12 billion in 2013.
The rehabilitation plan will see its workforce slashed from 25,000 to 20,000.
The BangkokJohannesburg route was already cancelled on January 15 and the BangkokMadrid, BangkokMoscow, BangkokLos Angeles routes are likely to be axed in the second quarter of this year.
Decisions on routes that do not make a profit but are considered to have potential will be made in the fourth quarter. They include Bangkok-Rome, Bangkok-Milan, Bangkok-Brussels, Bangkok-Brisbane, Bangkok-Sapporo, Bangkok-Colombo, Bangkok-Denpasar and Bangkok-Hyderabad.
Under the rehabilitation plan, THAI's fleet will also be revised. It will sell 22 old aircraft and decommission 14 Boeing 747-400 and Airbus A 340-600 craft.
THAI also plans to sell its stakes in Nok Air, BAFS and Novotel Suvarnabhumi Airport Hotel. THAI holds a 39-percent stake in Nok Air, a 22.59-percent stake in BAFS and a 30-percent stake in Novotel Suvarnabhumi Airport Hotel. THAI also plans to sell its shares in the Amari Airport Hotel and Royal Orchid Sheraton Hotel as part of its business restructuring.
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