The board of Thai Airways (THAI) has asked the carrier’s management to devise a new series of cost-cutting measures as it continues its attempt to stave off the affects of the global economic crisis. The Bangkok Post reported that the cost reduction is part of an overall survival bid which also includes the delay of new plane deliveries.
THAI Chairman, Surachai Tansitpong, was reported saying that all units of the airline needed to submit cost-cutting plans within one month. The Bangkok Post reported Surachai saying that the cost cuts would be across the entire spectrum of THAI’s operation and even some of the privileges given to the airline’s board of directors would be scrutinised.
Earlier this week Thailand’s Transport Minister, Sopon Zarum, suggested that perks given to directors and fringe benefits to staff, including free air tickets, come under close scrutiny.
The report added that THAI’s board this week instructed management to ask the European manufacturer Airbus to delay the delivery of the six new A330-300 aircraft due for delivery this year. The delay would mean that the airline could defer payment for new planes, thus providing some relief on financing costs.