Announced today a major restructuring plan for Thai Airways has been approved by the military-led Thai government in a bid to restore profits for the national airline.
The state controlled Thai Airways is one of a number of state companies to undergo major reform after the military took over from the elected government in a coup last May. The restructuring of Thai Airways will see drastic measures implemented to cut down operating costs, boost revenue and will also see some non-core assets sold off.
Thai Airways President Charumporn Jotikasthira announced to a packed news conference that the airline would reduce the number loss-making routes, both in the domestic and international markets by around 10 % by the end of the year. Thai will sell off up to 22 older aircraft whilst taking delivery of three new planes during this two year restructuring initiative. Thai Airways had seen its financial position crumble after its debt jumped with high operating costs and outlay for new aircraft. Thai Airways had been on a major fleet renewal programme, having received 41 aircraft in the last four years alone.
JShaw