Airline News
THAI board approves retirement scheme, sell-offs
June 22nd 2015
According to an insider speaking to the Bangkok Post, Thai Airways International’s (THAI’s) board last week approved aircraft selloffs and a plan to offer early retirement to 2,000 employees. Read More » The $5.5 billion baht ($163 million) voluntary retirement scheme will be aimed at cabin crew aged 45 or above, with different packages offered to employees in other departments.
THAI will dispose of its fleet of four B737-400s and four additional A330-300s this year, all older than 20 years. The sales will bring the number of aircraft sold this year to date to 18, still lagging far behind its target of 42 for the beginning of 2016. Speaking at the IATA AGM in Miami, THAI’s president, Khun Charamporn, said he was committed to the carrier’s turnaround plan and insisted the task would not be as insurmountable as many critics believed. "Our mission is not so much different from what Japan Airlines and Garuda Indonesia have done, or what Malaysia Airlines is undergoing. Why can't we be as successful in our endeavour as they are," Charamporn asked. The THAI chief added the carrier could post a profit this year, depending on two key factors: fuel cost and the Euro exchange rate. The Thai national carrier made a net loss of 15.6 billion baht in 2014, and 12 billion in 2013.
Charamporn said he did not expect the International Civil Aviation Organization's (ICAO’s) audit identifying "significant safety concerns" to lead to a ban of THAI flights to and from foreign destinations. "We can guess what the outcome of the ICAO declaration will be, but I don't believe THAI faces the worst-case scenario of being grounded," he said.
In the interim, local competitor, Thai Lion Air, is gearing up for international expansion. The Don Mueang-based carrier operates an extensive Thai domestic network and is preparing to launch Singapore in the next two months. The budget offshoot of Indonesia’s Lion Air Group plans to add services to Taiyuan as well as destinations in Japan, towards the end of this year, according to its ground handling manager, Nas Wongteerathaweeporn.
