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Thai Airways cuts another 4,250 staff, offering them early retirement

Tim Newton

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4,250 Thai Airways employees have been pushed into an early retirement after failing a screening process for remaining employees. The process was a necessary result of the national airlines’ dire financial situation and current debt restructuring program. Remaining staff are being forced into new, leaner contacts.

The 13,554 remaining Thai Airways staff went through the screening program. 9,304 passed, according to the Bangkok Post. The 4,250 staff who failed will be able to receive early retirement benefits or apply for the next round of staff screening. Employees who passed the screening will continue to work for the legacy airline will sign contracts that start on May 1. Many of the ‘cushy’ contractual staff benefits are now missing from the new contracts, and more in line with modern aviation businesses.

People who missed out on the first round of screenings have been informed that they can apply for the second round, starting next Monday. The results are being announced on April 28. Otherwise they have until the end of today to apply for the early retirement benefits. They won’t be replaced as Thai Airways continues to find the best way to reduce its past inflated staff numbers.

The retirement packages are being paid in 4 instalments over 12 months. The first payment will be made in June this year.

Meanwhile union representatives are disputing the terms of the new contracts for Thai Airways staff. The labour union claims the changes have removed, or diluted, many former staff entitlements and welfare benefits. The union called on Thailand’s Department of Labour Protection and Welfare to review the changes and check if they align with the debt-restructuring plan submitted to the Central Bankruptcy Court.

Thai Airways, with its fleet mostly grounded since April last year, is still in the midst of a lengthy bankruptcy proceedings. Most of its creditors are overseas aircraft leasing companies. There’s also tens of thousands of ticket holders who are demanding refunds for flights that were cancelled as a result of the groundings in 2020.

The Thai government cut Thai Airways free after bailing them out of debt every year over the decade before 2020 by selling their controlling stake in the airline.

SOURCE: Bangkok Post

 

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10 Comments

10 Comments

  1. Avatar

    Hungry Farang

    Saturday, April 10, 2021 at 1:48 pm

    One time in lifetime I bought a ticket at this airline. I will *never ever* fly with thai airways again.

  2. Avatar

    Gosport

    Saturday, April 10, 2021 at 3:22 pm

    It is better to get early retirement, put money in new business in this time, just wait for recovery, you will surely be a millionaire in 2 years. Thai Air debts has been piling for many years, even good years. The problem won’t be solved in 5 years, even solved, it will go to it in two good years. Selling papaya salad is much better.

  3. Avatar

    Timmytime

    Saturday, April 10, 2021 at 3:34 pm

    Just shut down this misery once and for all. Thai Airways cant even afford to pay their licence for their IFE onboard and has to pay everything in cash since their credits are ZERO, fuel, cleaning, catering etc. And so far, not one single customer has got a single baht in refund for tickets bought before the pandemic hit. But still Thai has the nerve to campaign for their Orchid memberships credit cards around the country in shopping malls etc. Those who fall for that must be dumber then a rock, a 100% scam. Shut your pathetic operations down Thai and face the reality.

  4. Avatar

    toby andrews

    Saturday, April 10, 2021 at 5:06 pm

    I do not understand.
    Have they been given early retirement with no benefits, not even a golden goodbye sum?
    Not even a Thai Airways clock?
    Seems to be there is a slow wind down, and when there is very little money left, the executives will take it as severance pay.
    The government share in the company will be lost, which is the Thai peoples’ money.
    All that will be left will be the realisation that no refunds for tickets will be made, international resolve never to trust anything Thai, and never to pay money up front to Thais.

  5. Avatar

    Wayno

    Saturday, April 10, 2021 at 5:37 pm

    “The retirement packages are being paid in 4 instalments over 12 months. The first payment will be made in June this year.”

    Good luck with that

  6. Avatar

    A Web Revolution

    Saturday, April 10, 2021 at 10:42 pm

    Employees who passed the screening will continue to work for the legacy airline will sign contracts that start on May 1.

  7. Avatar

    Baroness

    Saturday, April 10, 2021 at 10:52 pm

    Not only the Thai government and the Thai people will loose everything but many other international institutional investors. Looking at the shareholders list, it’s impressive to see so many “shrewd investment banks, hedge funds and other financial institutions have been caught in these demises.

    Many of us may have been shareholders without knowing it through our pension funds.

  8. Avatar

    Mr cynic

    Saturday, April 10, 2021 at 11:22 pm

    I’m surprised anybody is trying to resurrect this company.

    Would have thought”never let a good crisis go to waste”school of thought would be used.
    Could have just closed up shop with no loss of face and blame everything on the pandemic.

    My suspicions are the attempt to raise the phoenix from the ashes may well be for the vultures to pick the remains of the carcass completely clean.

  9. Avatar

    LondonAl

    Sunday, April 11, 2021 at 12:58 am

    It’s not in the interests of anyone if Thai Air goes under, the carriers that are left will increase their prices big time on all routes, in my case London to Bangkok will have one direct carrier left which is Eva Air.

  10. Avatar

    Ben

    Sunday, April 11, 2021 at 7:06 pm

    It’s about time this company started acting a bit more responsibly financially. I doubt the Thai government is going to fund future losses indefinitely so it needs to right size to be able to compete. Many of its competitors don’t have cushy benefits and crippling fixed costs so those will have to go otherwise the company should just liquidate now. The labor unions are delusional if they think those cushy benefits will be preserved.

    Those being let go are lucky to be getting severance pay. Those remaining are lucky to have jobs.

    They need to figure out other cost cutting steps asap as the clock has been ticking.

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Read more headlines, reports & breaking news in Thailand. Or catch up on your Thailand news.

Tim Newton has lived in Thailand since 2012. An Australian, he has worked in the media, principally radio and TV, for nearly 40 years. He has won the Deutsche Welle Award for best radio talk program, presented 3,900 radio news bulletins in Thailand alone, hosted 450 daily TV news programs, produced 1,800 videos, TV commercials and documentaries and is now the General Manager and writer for The Thaiger. He's reported for CNN, Deutsche Welle TV, CBC, Australia's ABC TV and Australian radio during the 2018 Cave Rescue.

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Disease Control Department back-peddled saying that that foreigners living in Thailand WILL also be vaccinated, governor of Chiang Mai is calling for the ban on dining in at restaurants in the northern city to be lifted and for eateries to be allowed to serve food on-site until 9pm, Tourism and Sports Minister insists the southern island of Phuket must record zero Covid-19 cases if a planned July re-opening is to go ahead, and 150 million baht worth of methamphetamine pills were impounded in Nakhon Phanom yesterday

 

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Economy

Stimulus package gives more back the more you spend

Neill Fronde

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PHOTO: A new stimulus package aims to get the middle class spending. (via Flickr - Marco Verch)

A new stimulus package targeting middle and high-income people aims at increasing spending by offering more e-voucher the more you spend. Ying Chai Ying Dai, which translates to “the more you spend the more you get”, will reward those who spend between 46,000 and 70,000 baht with a 7,000 baht e-voucher. This part of the government’s 225 billion baht stimulus package hopes to encourage 4 million qualifying middle- to upper-class people to spend more money by refunding 10-15% back, according to the Finance Ministry’s Fiscal Policy Office.

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A third phase of the “Khon La Khrueng” stimulus plan is expected to begin in July with participants getting a maximum of 3,500 baht each to spend, and opening the program to 16 million new people. This massive expansion though will stipulate that anyone participating in this program cannot also participate in the Ying Chai Ying Dai scheme.

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SOURCE: The Phuket News

 

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Covid UPDATE: 2,044 new cases and 27 deaths, provincial totals

Thaiger

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Deputy spokesperson for the Ministry of Foreign Affairs Natapanu Nopakun / Photo courtesy of the Royal Thai Government

2,044 new Covid-19 cases and 27 coronavirus-related deaths were reported today in the Centre for Covid-19 Situation Administration’s daily briefing. There are now 29,320 active Covid-19 cases. 1,170 Covid patients are in critical condition including 367 on ventilators.

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Nonthaburi 201 3,032
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Samut Sakhon 69 1,299
Surat Thani 60 1,035
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Districts in Bangkok with the highest number of confirmed cases…

District New cases
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Bang Khae 24
Lat Phrao 13
Ratchathewi 10
Pom Prap Sattru Phai 9
Bueng Kum 9
Phasi Charoen 8
Bang Khun Thian 8
Din Daeng 8

Covid UPDATE: 2,044 new cases and 27 deaths, provincial totals | News by Thaiger

 

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