Thai Airways to cut costs, re-route flights

[Admin]

Thai Airways to cut costs, re-route flights 
Bangkok Post: 1 Jul 2009
www.BangkokPost.com

THAI plans to cut B10bn in costs

Thai Airways International Plc yesterday reaffirmed its plan to reduce costs by as much as 10 billion baht and cut its investment budget by 2.5 billion this year to maintain income with last year.

The plan is part of a larger business rehabilitation programme by the national carrier, which lost money last year for the first time in its history.

Prime Minister Abhisit Vejjajiva, speaking after a cabinet meeting at which the plan was discussed, said it would need to be reviewed again by Piyasvasti Amranand, who was appointed as president last month.

According to Supachai Jaisamut, deputy government spokesman, the THAI plan involves re-routing flights, marketing and management cost control, promoting more online ticketing, and delaying pay increases and bonuses.

THAI forecasts earnings before interest, tax, depreciation and amortisation (EBITDA) at 38.81 billion baht this year, 45.13 billion next year and 46.2 billion baht in 2011.

In a related development, the cabinet approved a proposal by the Department of Civil Aviation to extend reduced aircraft landing and parking fees until September 2010 from this September. The aim is to promote tourism by helping all airlines reduce costs in a difficult business environment.

Exemptions of landing and parking fees for charter flights would stay in place until Oct 31, 2010 as planned.

THAI shares closed yesterday on the SET at 14.20 baht, down 10 satang, in trade worth 106.9 million baht.

[nookiebear]

One of Thai's main problems is the 'outdated ' inflight entertainment systems on the B747 fleet.They are the only airline I kinow of that are operating into Europe still with only the one large screen in economy,no choices of movies etc etc.A friend of mine arr in BKK recently & flew Thai for the first time,usually uses EVA,but he said he won't fly Thai again