Politics
Thai Airways to lay off 30% of its staff
“THAI will stop repaying all debt and start from scratch.”
The government announced today that Thai Airways will have to dismiss more than 6,000 employees after entering into receivership proceedings and a debt moratorium of 200 billion baht. The Cabinet decided to push Thai Airways into a bankruptcy procedure under the Bankruptcy Act and ordered the Ministry of Finance to relinquish their majority stake in the airline, thus stripping it of its state-enterprise status and enabling the proceeding under civil law.
A spokesman said the troubled national flag carrier, which racked up billions of baht in losses for years, will “stop repaying all debt and start from scratch”. 30% of its more than 20,000 employees, or some 6,000 people, are to be dismissed. They will receive 10 months salary as compensation as per the Thai labour laws.
Sources say the ‘rehabilitation’ of the airline could take at least one year. The bankruptcy must be declared in the US as well as in Thailand to avoid planes being seized or other asset forfeiture.
Yesterday it was reported that Airbus were chasing repayments for some of the leased planes. But today Airbus denied local reports that it had notified the airline of debts the struggling carrier owes for 30 rented aircraft, according to Nation Thailand.
The 53 Airbus aircraft used by Thai Airways includes six Airbus A380-800,12 A350-900s, 15 A330-300s and 20 A320-200s.
SOURCE: Nation Thailand
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Michael Lewis
Thursday, May 21, 2020 at 7:42 pm
A company that gas more Chiefs than Indians was bound to hit the deck sooner or later. Lets hope the 6000 redundances are the pencil roller chiefs who wrecked the company.
MJ
Friday, May 22, 2020 at 11:27 am
The only way to get back to Business is to sweep the stairs from up to down.
The Top positions must be Business men. It will not work with a Pilot or Government people in the Top Management.
Wish them Good Luck
Mr D G Apswoude-Director, Australian Investment & Development proprietary l.
Friday, May 22, 2020 at 5:50 pm
Thai airways was, and still is, a Thai Government-non private-run airline that operated under strict Thai Govt direction achieved maximum financial benefit to the Thai travel and tourism industries for past twenty years in generating income of 20% of a 30 Trillion Thai Baht GDP per year. That’s correct-around 100 trillion baht was underwritten by an airline who’s sole aim was to benefit Thai travel and tourism, with a secondary Business plan to try to make a profit or limit losses. Now it’s employees, management, and creditors are told that Thai Government will not honour anything and will seek to act as a corporate entity going forward. This may very-well bring all of Thailand and it’s business community into disrepute. The “Road to perdition” is about to be travelled Thai-duly elected Government, the consequences may permanently damage Thailand and it’s perception by the world at large. Staff losing life savings does not=LOS .
Peter mccann
Saturday, May 23, 2020 at 10:12 am
Have I lost my credit for flights