Tuesday, September 21, 2021

business

Thai AirAsia shuts operations in August due to domestic flight ban


Thai AirAsia will temporarily cease all operations in August, due to zero revenue following the ban on domestic flights in the "dark red" provinces, in order to meet the conditions of social security assistance.

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Employees were paid 50 per cent of their salary in July and the balance payment is postponed to September.


Thai AirAsia Co Ltd announced on Sunday that the company’s board had approved a temporary closure of operations at a meeting on July 29.


At the meeting, the management team explained to the employees that the company had always done its best to manage and seek funds to mitigate the impact. But, due to the third wave of the pandemic since April and the flight prohibition order in the "dark red" zones since July 21, the company has encountered a lack of cash flow and the situation was worse than expected. Therefore, it became necessary to announce short-term measures to postpone employees' salaries for July-August.


In July, Thai AirAsia’s active employees were to be paid 50 per cent of their salary and another 50 per cent in September, while all managers and senior executives’ payments are postponed to September.
In August, the company will be temporary closed for all operations in order to receive social security compensation. The situation is expected to ease in September which will allow the company to receive funds, be able to operate flights, and pay its staff full salary, the compantly said.


At the end of the meeting, Thai AirAsia executives thanked the employees for their understanding, sacrifice, and cooperation. The management team promised to continue to resolve the issues and apologised for any impact they might have caused by not handling the situation well enough.

Published : August 01, 2021

By : The Nation