Airline News
THAI facing biggest loss in history as management salaries are cut
November 13th 2015
A source at Thai Airways International (THAI) has told the Bangkok Post the carrier expected to post at least 11 billion baht in losses for the third quarter and also predicted losses for the financial year ending December 30 would be the largest in the flag carrier’s 56-year history. Read More » If correct, the 2015 results would surpass the 21.3 billion baht loss it posted in 2008 and the 15.6 billion baht loss last year. The results will be formally announced on Monday.
THAI has proposed trimming senior executive salaries on a voluntary basis in another attempt to slash costs, the Bangkok Post said, citing THAI labour union president, Damrong Waiyakanee.
The union chief said the plan affected approximately 2,000 staff, ranking from executive vice-presidents to department chiefs. The proposed cuts would 10% for those in top positions down to 1% at managerial level.
The THAI labour union has opposed the plan. It said the money saved would be minimal and would have no impact on solving the company's crisis. Narongchai Wongthanavimok, THAI’s executive vice-president of finance and accounting, tried to ease the union's concerns when he said it was only one of several measures planned and would not be compulsory. There would be more proposals to come to reduce the operating costs, he added.
Earlier this week, Thai transport minister, Arkhom Termpittayapaisith, said THAI executives must shoulder the blame and accept responsibility if they fail to rehabilitate the carrier by March.
