THAI to reduce international and regional flights to cut costs

Thai Airways International has agreed to reduce several international and regional flights to save costs and, at the same time, increase flights to Europe which have more potential to make profits.

THAI president Mr Jarumporn Chotikasathien disclosed over the weekend that the flights on four routes namely Bangkok-Seoul-Los Angeles, Bangkok-Rome, Bangkok-Calcutta and Bangkok-Hyder Rabat would be reduced effectively as of October 25.

Also, Bangkok-Luang Prabang and Bangkok-Chang Xa services will be suspended and the operations of these two routes will be taken over by Thai Smile low-cost airline.

Mr Jarumporn said that THAI sustained about 300 million baht a year from operating each of the aforementioned routes because of the unattractive air fares and improper types of aircraft used. The services cutback, he added, will reduce passenger load by an average of 6 percent.

Staff who are to be affected by the suspension of services will face layoffs or transferred to the head office or they can join the early-retirement programme, said Mr Jarumporn. He added that THAI might resume operating the suspended routes if its financial condition has improved in the next two years.

Overall, Mr Jarumporn said he expected improved performance for the second half of the year with over 100 percent growth in the Chinese market and steady improvement of the passenger’s growth on the European routes.

Thai PBS

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