Thailand’s national air carrier Thai Airways announced that it would cut 240 executive positions as part of its bankruptcy restructuring plan.
“The number of executive positions has been reduced from 740 to about 500,” the ISRA News Agency reported on February 18, 2021. “The new organizational structure will take effect on March 1, 2021.”
The airline is currently under financial rehabilitation process approved by the Central Bankruptcy Court on September 14, 2020. The Court granted Thai Airways business reorganization petition and appointed the planners who were expected to submit the plan to the Court within the fourth quarter of 2020.
However, Thai Airways has already pushed back the deadline for submitting its rehabilitation plan for multiple times. The first time, the flag-carrier asked to postpone the submission until February 2, 2021. However, following the airline’s second request, the Court extended the deadline until March 2, 2021.
“A successful restructuring will require cooperation from all parties, including creditors and employees,” the airline’s acting president Chansin Treenuchagron said in response to the news.
On January 26, 2021, Thai Airways revealed the progress of the airline’s restructuring plan, which involved increasing revenue, cost reductions and preparation for future sustainable operations, including capital restructuring and debt repayment to all creditors.
“As of now, THAI has partially proceeded with the work plan such as granting voluntary leave without pay and making sacrifices for the organization projects in order to decrease the Company’s hiring expenses,” Thai Airways statement reads.