Thai Airways announces staff cuts in desperate bid to avoid bankruptcy

Thai Airways says it has cut around 240 executive positions as part of its bankruptcy restructuring process.

The airline said: “The number of executive positions has been reduced from 740 to about 500”, also confirming that the number of supervisory levels would go from eight to five to increase efficiency.

Thai Airways, like most of its rivals around the world, has slashed capacity as travel restrictions and falling demand make many commercial routes unviable during the coronavirus pandemic.

The airline will submit its restructuring plan to the Central Bankruptcy Court on 2 March and the plan is expected to be voted on by creditors in May.

If a majority of creditors vote against it then the airline will go ahead with bankruptcy procedures.

Acting president Chansin Treenuchagron said: “A successful restructuring will require cooperation from all parties, including creditors and employees.”

Thai Airways employs around 21,000 people and is Thailand’s national carrier, an important part of its vital tourism industry.