Thai Airways announces staff cuts in desperate bid to avoid bankruptcy
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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.
Questions & Answers
Q.What specific changes has Thai Airways made to its management structure?
What specific changes has Thai Airways made to its management structure?
The airline has cut its executive positions from 740 to approximately 500. Also, the number of supervisory levels within the company has been reduced from eight to five to improve efficiency.
Q.When will the airline's restructuring plan be presented to the court and its creditors?
When will the airline's restructuring plan be presented to the court and its creditors?
Thai Airways plans to submit its restructuring plan to the Central Bankruptcy Court on 2 March. Creditors are then expected to vote on this plan in May.
Q.What will happen if the majority of creditors do not approve the restructuring plan?
What will happen if the majority of creditors do not approve the restructuring plan?
If a majority of creditors vote against the proposed restructuring plan, the airline will proceed with full bankruptcy procedures as a consequence.
Q.Why has Thai Airways, like other airlines, been forced to reduce its capacity?
Why has Thai Airways, like other airlines, been forced to reduce its capacity?
Global travel restrictions and a significant drop in demand have rendered many commercial routes unprofitable during the coronavirus pandemic. This situation has led to widespread capacity reductions.
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