FRIDAY, March 29, 2024
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THAI grounds 12 more planes to cut costs amid slump in demand

THAI grounds 12 more planes to cut costs amid slump in demand

Thai Airways International Plc (THAI) is grounding 12 planes to reduce operational cost amid the Covid-19 situation.

The airline’s flight demand has fallen by some 30 per cent, Cherdphan Chotikhun, executive vice president of THAI's Technical Department, said.
The 12 planes to be grounded under this plan are: three Airbus A380s -- to be grounded for seven months; six Boeing 777-200s -- to be grounded from Monday (March 16) onwards and will not be recommissioned; an Airbus 330-300 HS-TEU, which has been grounded since March 10; an Airbus 330-300 HS-TES and a Boeing 777-300 HS-TKE -- both will be grounded from Friday (March 20) onwards.
“The Boeing 777-200s will not be used again as they have high maintenance cost up to Bt1 billion,” he added.
This plan will raise the total number of THAI jets grounded to 24; 12 planes were earlier grounded for engine maintenance, resulting in the company having 54 planes in operation from the 80-strong fleet
“Grounding the planes will help the company save on engine depreciation fee, which is usually at $600-$900 or Bt17,000-2,800 per flight hour,” said Cherdphan. “We will also save expenses on crews, pilots and ground services for these planes.”
Last Friday (March 13), the Civil Aviation Authority of Thailand (CAAT) asked the Civil Aviation Board to consider measures proposed by airlines suffering the effects of the Covid-19 outbreak. One proposal is for a 50-per-cent reduction till the year-end in fees charged for landing, parking, office rentals and other services. Others would see the two-week process for approving requests for flight adjustments shortened and passenger-service charges halved to encourage more people to fly.

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