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Wednesday, May 18, 2022

Thai Airways to sell 42 aircraft and lay off staff to cut costs

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The head of Thai Airways International Plc’s restructuring committee announced yesterday that it will sell 42 aircraft and cut nearly a third of its workforce as part of a plan to downsize its fleet and cut costs.

The airline, which was in financial difficulties long before the pandemic hit, is undergoing protected restructuring from bankruptcy.

Piyasvasti Amranand, who leads structuring, said the planes being sold are old and not energy efficient. He said 16 jets will be returned on lease.

After the sale, the airline will have 58 aircraft in four types available. Thai Airways has been losing money almost every year since 2012.

Piyasvasti further stated that the airline plans to add more flights in the coming months, especially from Europe, as travel recovers.

Piyasvasti also announced that Thai Airways will reduce its workforce from 21,300 to 14,500 by December 2022.

To help cash flow, the airline will sign a 25 billion baht credit agreement with financial institutions by next year and is in talks with the government to borrow another 25 billion baht, he said.

The airline booked after cost savings in the six months of this year. ending in June a profit of 11.1 billion baht against a loss of 28 billion baht in the same period a year earlier.

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