Thai Airways International's board approved a restructuring plan aimed at cutting costs and strategising routes to help return the loss-making airline to profit as soon as the middle of next year, at a meeting held on Thursday.
Thailand's new military rulers have singled out the country's troubled national carrier as the first state enterprise to undergo reform after seizing power in May from a government accused of corruption. Thai Airways, which employs 25,000 people and another 5,000 in subcontracted staff, has racked up four quarters of losses partly due to high operating costs.
The carrier is planning early retirement of hundreds of employees and aims to cut overtime shifts, acting President Siwakiat Jayema told reporters after a board meeting on Thursday. "It's quite challenging for Thai Air. The cost-cutting scheme should be done immediately, while the airline needs to come up with a clearer strategy to boost revenues," said Amnart Ngosawang, an analyst at Finansia Syrus Securities.
