Debt-ridden Thai Airways to 'cut 5,000 staff'

[webfact]

Debt-Ridden Thai Airways To 'Cut 5,000 Staff'
By Khaosod English

BANGKOK — Facing huge financial losses, Thai Airways is slated to "encourage" 5,000 of its employees to resign in order to save operational costs, the director airline said.

Calls for Thai Airways to either privatise or drastically reform its structure have grown steadily in recent months as the state-owned national airline continues to post massive losses in revenue.

Chokchai Panyayong, President of Thai Airways International, told Matichon yesterday that airline executives have decided to downsize the company’s staff, chiefly by encouraging employees to resign or accept early retirement. These employees will receive a compensation package for their "voluntary cooperation," said Mr. Chokechai.

Mr. Chokechai said he expects the policy to help free up as many as 5,000 positions, but stressed that the cut will not be taken in an across-the-board manner.

"The adjustment will consider ability, age, and number of employees," Mr. Chokechai explained. "If a certain unit has too many employees, there must be cuts [in that unit]."

According to Mr. Chokechai, the airline has been facing bleak business prospects for the past few months: the number of incoming passengers has decreased, particularly those from China and South Korea, and Thai Airways has been unable to compete with private airline companies that have begun a fierce price-cutting race to draw customers.

Although the Emergency Decree in Bangkok was lifted last month, the number of tourists arriving in Thailand has not significantly increased, the Thai Airways president said.

Mr. Chokechai said these disadvantages have caused the airline to lose 30 million more baht in revenue than expected. He did not specify the total amount of loss.

Nevertheless, Mr. Chokechai said he remains optimistic that the company may experience positive changes once the political crisis is resolved.

"We may even manage to make small profit at the end of this year," Mr. Chokechai said.

Source: http://en.khaosod.co.th/detail.php?newsid=1398156797


-- Khaosod English 2014-04-22

[chainarong]

Well in all fairness ,no use applying at QANTAs, five thousand in staff cuts is an enormous amount for the people at Thai Airways to handle , one hopes that safety is not compromised with cut backs , always in these circumstances you need to Question the management to allow the extra five thousand in the first place.

[PatOngo]

How long before the inflight meal is reduced to 1 banana per passenger?

[worgeordie]

It needs to be from the top, downwards for this to work,too many jobs for

the boys,family,or just knowing someone that works there,they need to

start staffing with people who know the job, not who they know to get the job.

all the hangers on with the free flights and upgrades,needs now to be run

professionally, and thats not going to be an easy task

regards worgeordie

[tezzainoz]

Maybe look at your fare structure and service

4 years ago would not fly with any one else but Thai as it was non stop from Australia to Bkk

Now because of over priced flight and bad service

I put up with the stop over in KL or Singapore

They lost my family, how many other no longer prepared to waste money on this airline

[rreddin]

It needs to be from the top, downwards for this to work,too many jobs for

the boys,family,or just knowing someone that works there,they need to

start staffing with people who know the job, not who they know to get the job.

all the hangers on with the free flights and upgrades,needs now to be run

professionally, and thats not going to be an easy task

regards worgeordie

So Thai Airways International has had a dose of reality. It was a long time coming. I would have hoped that they cut the freebies before they cut jobs, but in reality both have to be reduced. That however, is not the entire solution. The airline has to be run professionally and profitably. If the existing executives cannot do that, they should be replaced and the airline put into the privare sector.

[ChrisY1]

With the dithering around that Thais are reknown for.....by the time a solution is close to being reached ...it'll be too late.....and there'll be no money left!....

And with a caretaker government running the show...it could crash sooner than later....use your FF miles!!

[Ricardo]

Fire employees if you need to, but starting with a nominal third of Board-level hangers-on, and ban all free-flights for anybody-at-all !

[The stuttering parrot]

Age?

Glad to see there's no discrimination at thai airways!

Wouldn't like to be one of the seniors in their units facing an uncertain future.

[Torkmada]

I guess Suthep will now award himself a golden whistle for nearly bankrupting the national airline.

He is the only Thai that is a bigger loser than Abhisit.

Well done!

Peanut.

Edited April 22, 2014 by Torkmada

[metisdead]

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[leggo]

It needs to be managed but as we all by now this country doesn't know how to do this. Privatise immediately and get rid of the free loaders,get competitive and get real. It's the last airline I would use to fly Bangkok to London and I used to fly only Thai , problem is that they have completely lost the plot!

Sent from my i-mobile IQ 2 using Thaivisa Connect Thailand mobile app

[Bluespunk]

I guess Suthep will now award himself a golden whistle for nearly bankrupting the national airline.

He is the only Thai that is a bigger loser than Abhisit.

Well done!

Peanut.

Nope. This situation has been a long time in coming.

[WhizBang]

How about the entire board of directors resign and true businessmen, with a working knowledge of airline operations, and no connection to any politicians be assigned to run the airline?

Then, and only then, might Thai Air become viable again.

[Gunna]

I guess Suthep will now award himself a golden whistle for nearly bankrupting the national airline.

He is the only Thai that is a bigger loser than Abhisit.

Well done!

Peanut.

Take you one eyed rose tinted glasses off - The airline was profitable a couple of years ago, but the PT wanted one of their guys in the top job and ever since he took over it has been losing money, ie well before Suthep

[GentlemanJim]

<script type='text/javascript'>window.mod_pagespeed_start = Number(new Date());</script>

How about the entire board of directors resign and true businessmen, with a working knowledge of airline operations, and no connection to any politicians be assigned to run the airline?

Then, and only then, might Thai Air become viable again.

ooousa!

You'll go to hell for that one!

[Bel Mondo]

All these Educated, English-speaking Thai staff, now out of job?. Such a waste of high-end talent!

Thais are such well-educated, responsible employees. Guess this is why more and more Filipinos and Malaysians are getting all the hotel jobs and hospital jobs since the AEC is just around the corner.

Well, I guess the Pattaya Go-Go's and Beer Bars will have no shortage of new employees.

[samtam]

It needs to be managed but as we all by now this country doesn't know how to do this. Privatise immediately and get rid of the free loaders,get competitive and get real. It's the last airline I would use to fly Bangkok to London and I used to fly only Thai , problem is that they have completely lost the plot!

Sent from my i-mobile IQ 2 using Thaivisa Connect Thailand mobile app

as long as they haven't lost the pilot...through their job cuts.

Mr. Chokechai said these disadvantages have caused the airline to lose 30 million more baht in revenue than expected. He did not specify the total amount of loss.

why can't he specify the amount of the losses? doesn't he know? perhaps that's why there's a problem at THAI.

Edited April 22, 2014 by samtam

[Mentors]

I would not be surprised if THAI would be grounded in the nearer future and passengers will be stranded all over the world.

[seabass69]

Maybe look at your fare structure and service

4 years ago would not fly with any one else but Thai as it was non stop from Australia to Bkk

Now because of over priced flight and bad service

I put up with the stop over in KL or Singapore

They lost my family, how many other no longer prepared to waste money on this airline

They lost your family? I know tickets for a seat on THAI are stupidly expensive, but you shouldn't put valuables in your check-in luggage. I hope they turn up soon

[bigbamboo]

How long before the inflight meal is reduced to 1 banana per passenger?

And with the staff cuts those Thai trolley dollies are going to have to spread themselves around more than ever.

[JoeThePoster]

Does this mean I will no longer have 3 minions hovering around me at the coffee machine in the ROP lounge telling me to "pret thit buttun"?

[transam]

It needs to be from the top, downwards for this to work,too many jobs for

the boys,family,or just knowing someone that works there,they need to

start staffing with people who know the job, not who they know to get the job.

all the hangers on with the free flights and upgrades,needs now to be run

professionally, and thats not going to be an easy task

regards worgeordie

From the TOP, thats blasphemy...........

[PaullyW]

How long before the inflight meal is reduced to 1 banana per passenger?

And with the staff cuts those Thai trolley dollies are going to have to spread themselves around more than ever.

And spread they will do. Few of em live in m'building. I suspect the market price of bjs will face some downward pressure

[55Jay]

Sure, the tip of the whip eventually comes around and whips you in the arse.

It's not welfare so cut out fraud, waste and abuse. Then bring your prices in line with relevant competition (you ain't 5 star baby), get bums in seats and build your reputation back up. Will take time. Years. Eventually, you can pull through.

Or don't, be a welfare case and suck eggs.

I would love to fly Thai but I fly everybody else except Thai, just because of price and product.

[PaullyW]

And stop with the disgusting ladyboys as FAs

[Johpa]

As others have noted, Thai Airways provides far too many complimentary flights to higher ranking RTAF and other government officials who feel the free flights confirms their sense of self-importance. In addition to free airfare, many of these same people go way overboard on luggage, especially on international flights where they declare the same exulted status for their multitudes of luggage that go through Thai customs without a glance. And then there is the constant delays and cancellations of flights related to <hrmmmph, guffaw, ummmm, nanu nanu>. Bottom line is that Thai Airways should be privatized and removed from the yolk of government corruption.

[Thai at Heart]

Wow. 5000 employees. That is an enormous amount of people.

[englishoak]

I will bet there are a few people making calls to daddy and flicking through the little book of contacts to assure they arnt one of the "cuts"

[Noi657]

THAI is the perfect example that being more expensive doesn't represent better quality!