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Tuesday, June 28, 2022

Airline Thai AirAsia suspends its flights, lowers salaries while the fat writes red numbers in its accounts


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As Thailand’s airlines continue to struggle with the financial impact of Covid-19, Thai AirAsia has suspended all flights for this month as of today. The carrier also cuts staff salaries or defers partial or full payment until September.

According to a report by Bangkok Post, the airline’s financial problems are worsening as the low passenger numbers show no signs of improvement and cash flow has taken a huge dent.

Following restrictions on domestic travel introduced last month, the TAA is grounding its fleet and saying it has suspended flights after failing to get a loan. As is the case with all domestic airlines, TAA faces deteriorating liquidity issues, impacting staff salaries.

The Bangkok Post reports that TAA has had to postpone all or part of the payment of some salaries. Obviously, from July, management salaries will not be paid until September, while operational-level employees will only receive 50% of their salary in July this month, hoping to receive the remainder in September. In addition, the inactive employees receive only 25% of their salary in September.

The airline is counting on the current crisis to ease next month and hopes to obtain a loan to resume flights.

Meanwhile, the International Association of Air Carriers has criticized the high cost of Covid19 PCR testing in other aviation news, calling it a barrier to travel. IATA is also urging the government to be more flexible in allowing the use of cheaper antigen testing. A recent IATA survey shows that 86% of participants like to be tested. However, 70% believe that the high costs are a barrier to travel and 78% believe that the government should cover the costs of mandatory tests.

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