THAI plans huge cost-cutting exercise
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Thai Airways International (THAI) is planning a huge financial rehabilitation programme it believes will cut costs by THB4 billion (US$111 million), the Bangkok Post reported.
The national carrier’s plan will be submitted to Thailand’s Finance Ministry for approval by the end of the month.
Pichai Chunhavajira, THAI’s Senior Vice President Corporate Finance and Accounting, and Chairman of the committee managing the rehabilitation plan, was reported saying that the plan involve the airline revamping its ticket pricing structure, and reassessing its fleet utilisation. Pichai added that the airline would also closely monitor the currency exchange situation.
Pichai added that the airline would need about 40 new aircraft in the next 10 years to replace its ageing fleet, and that it wants to reduce the type of aircraft it operates, to cut pilot and maintenance costs.
“THAI will also review the purchase of 20 Airbus A321-200s for which it has already paid a down payment,” the Bangkok Post quoted Pichai as saying, adding that the airline still plans to sell off four Airbus A340-500.
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