Thai Airways targets profitability by 2016

Thai Airways International president Charamporn Jotikasthira has said various cost cutting measures and strict budget control will be implemented before staff cuts are considered as the carrier aims to return to profit in 2016.


Thai Airways targets profitability by 2016


Thai Airways International president Charamporn Jotikasthira has said various cost cutting measures and strict budget control will be implemented before staff cuts are considered as the carrier aims to return to profit in 2016.

Speaking to Thai media, Jotikasthira said Thai’s two-year long restructuring programme would initially focus on reducing expenditure in less sensitive areas and that if any cuts were to be made, they would be done so on a voluntary basis.

The statement appears to backtrack on statements made when the restructuring was announced in July last year, at which time management stated it would cut over one-quarter of Thai’s 25,000-strong workforce by 2018, starting with 1,500 jobs by the end of 2014.

“If we have good discipline in reducing other unnecessary expenditure, then reducing staff overhead will be one of the last factors as a cost-cutting measure. They have worked with us for a long time and if we need to lay off people in our organisation, appropriate packages will be offered to them and it will be voluntary,” he said.

The Thai Government Super Board approved the airline’s restructuring programme in wake of a THB9.2 billion (US$280.98 million) loss for the first nine months of 2014, ending September 2014.