The State Enterprise Policy Committee has approved in principle Thai Airways International's rehabilitation plan, which was discussed in a meeting on Monday chaired by the prime minister.
Measures will include a reduction of the airline's staffing by 5,000 and cancellation of its non-performing routes.
THAI is one of even troubled state enterprises. In the first nine months of 2014, the airline suffered losses of 9 billion THB. It recorded a loss of 12 billion THB in 2013.
The rehabilitation plan will see its workforce slashed from 25,000 to 20,000.
The Bangkok-Johannesburg route was already cancelled on January 15 and the Bangkok-Madrid, Bangkok-Moscow, Bangkok-Los Angeles routes are likely to be axed in the second quarter of this year.
Decisions on routes that do not make a profit but are considered to have potential will be made in the fourth quarter. They include Bangkok-Rome, Bangkok-Milan, Bangkok-Brussels, Bangkok-Brisbane, Bangkok-Sapporo, Bangkok-Colombo, Bangkok-Denpasar and Bangkok-Hyderabad.
Under the rehabilitation plan, THAI’s fleet will also be revised. It will sell 22 old aircraft and decommission 14 Boeing 747-400 and Airbus A 340-600 craft.
THAI also plans to sell its stakes in Nok Air, BAFS and Novotel Suvarnabhumi Airport Hotel. THAI holds a 39-percent stake in Nok Air, a 22.59-percent stake in BAFS and a 30-percent stake in Novotel Suvarnabhumi Airport Hotel.
It also plans to sell its shares in the Amari Airport Hotel and Royal Orchid Sheraton Hotel as part of its business restructuring.-VNA/NNT
Measures will include a reduction of the airline's staffing by 5,000 and cancellation of its non-performing routes.
THAI is one of even troubled state enterprises. In the first nine months of 2014, the airline suffered losses of 9 billion THB. It recorded a loss of 12 billion THB in 2013.
The rehabilitation plan will see its workforce slashed from 25,000 to 20,000.
The Bangkok-Johannesburg route was already cancelled on January 15 and the Bangkok-Madrid, Bangkok-Moscow, Bangkok-Los Angeles routes are likely to be axed in the second quarter of this year.
Decisions on routes that do not make a profit but are considered to have potential will be made in the fourth quarter. They include Bangkok-Rome, Bangkok-Milan, Bangkok-Brussels, Bangkok-Brisbane, Bangkok-Sapporo, Bangkok-Colombo, Bangkok-Denpasar and Bangkok-Hyderabad.
Under the rehabilitation plan, THAI’s fleet will also be revised. It will sell 22 old aircraft and decommission 14 Boeing 747-400 and Airbus A 340-600 craft.
THAI also plans to sell its stakes in Nok Air, BAFS and Novotel Suvarnabhumi Airport Hotel. THAI holds a 39-percent stake in Nok Air, a 22.59-percent stake in BAFS and a 30-percent stake in Novotel Suvarnabhumi Airport Hotel.
It also plans to sell its shares in the Amari Airport Hotel and Royal Orchid Sheraton Hotel as part of its business restructuring.-VNA/NNT
