AviationNew planes may be put on hold, routes under review

THAI looks to cut costs by 20 per cent

Thai Airways will reconsider an order for 38 new aircraft.
Thai Airways will reconsider an order for 38 new aircraft.

BANGKOK - Thai Airways plans to cut expenses  by around 20% in  a bid to reduce debt.

The cost-cutting is likely to impact workers’ overtime payments along with the operations of THAI Smile, where extra flying hours are expected to boost income.

The airline’s president Sumet Damrongchaitham said the first step will be to restructure THAI’s management and finances as well as reconsider its plan to buy 38 new aircraft.

Sumet said that though the airline’s original rehabilitation plan had a set framework, the situation had now changed due to the appreciation of the Thai baht.

“We are now in the process of analysing new markets,” he said.

THAI’s board chairman Aek-Niti Nitithan-Praphas said the carrier’s financial status needed to be reviewed in line with strong competition and routes that were no longer popular.

“It’s better to carefully revise the plan instead of exposing the airline to greater risk,” he said, adding that the target should be to reduce THAI’s expenses by 20%.

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