Thailand's national airline began reducing its workforce in 2020. With 29,000 people, Thai Airways was one of the airlines with the largest number of employees in Asia, compared with carriers of a similar size. Singapore Airlines, for example, has 17,000 employees and Cathay Pacific 19,500. The carrier already reduced its workforce to 21,000 last year.
The company's acting chairman, Chansin Treenuchagron, revealed that other cost-cutting measures on 2 March after the airline submitted its financial recovery plan. The carrier is complying...
Thailand's national airline began reducing its workforce in 2020. With 29,000 people, Thai Airways was one of the airlines with the largest number of employees in Asia, compared with carriers of a similar size. Singapore Airlines, for example, has 17,000 employees and Cathay Pacific 19,500. The carrier already reduced its workforce to 21,000 last year.
The company's acting chairman, Chansin Treenuchagron, revealed that other cost-cutting measures on 2 March after the airline submitted its financial recovery plan. The carrier is thus complying with the order of the Central Bankruptcy Court.
Thai Airways will once again be cutting its workforce. With 6,000 to 7,000 fewer jobsThai should be limited to some 14,000 employees. The number of aircraft types will be reduced from 12 to 5 and the number of engines from 9 to 4. The following aircraft will be permanently withdrawn from the fleet Airbus A380s, A340s and Boeing B747s. The airline has also negotiated a new billing system with the leasing companies. Billing is now based on the hourly use of the aircraft: a measure that considerably reduces costs.
The rehabilitation plan has created a post of 'transformation' manager. This aims to transform Thai Airways into a a high value-added private company with a strong Thai identity. Some 600 initiatives have been proposed. As soon as the court has approved the recovery plan and the covid crisis eases, the first measures will be put in place.
Culture of competence instead of nepotism
They will help re-establish Thai's status as a the preferred airline for all journeys to and from Thailand. The pricing structure will also become more flexible. " It will involve rethinking our product to offer a high-quality experience at a lower cost than today. By decoupling tariffs, customers can access cheaper pricing. Plus additional purchases (choice of seat, luggage)." explained the current President.
The revision of the network seems to be complete, with a probable concentration lines on the most profitable bundles. Around twenty destinations could disappear as a result. The online saleswhich has been neglected in the past, will become the driving force behind Thai's recovery in the face of passengers.
Above all, Thai Airways will attempt to introduce a new working culture which will move it away from the nepotism in which it has been immersed for years. This has often resulted in positions of responsibility being awarded to people with few skills. The carrier will be introducing a new set of Key Performance Indicators (KPIs) and governance measures based on international private sector practices..
Thai Airways confirmed the names of Piyasvasti Amranand and Chakkrit Parapuntakul, appointed by the court as administrators of the plan. Piyasvasti Amranand was remembered 10 years ago as a very tough but also very competent company chairman.
Thai currently operates a number of charter flights to a handful of international destinations. These include Copenhagen, Frankfurt, London, Sydney, Tokyo, Osaka, Seoul, Taipei and Hong Kong.
Thai Airways has also announced that it will soon be operating two special flights between Paris and Bangkok. The first will take place on 25 March, the second on 17 April. The airline is offering special fares on these flights. These are €495 one-way in Economy and €1,840 one-way in Business.
