Thai Airways International Pcl plans to cut 1,401 jobs through voluntary retirement this year and suspend its loss-making flights to Los Angeles and Rome as it pushes ahead with a restructuring plan, its president said on Sunday.
Thailand’s national carrier aims to reduce operating costs and capacity by 20 per cent under the two-year plan, which also calls for aircraft sales and a reduction in staffing.
The firm is one of several state-controlled companies that the military government has targeted for reform since seizing power in May 2014.
The flight suspension will reduce Thai Air capacity by 5 per cent, President Charumporn Jotikasthira told Reuters in a telephone interview. The company aims to cut capacity by 15 per cent in 2015.
"It’s normal that we have to cut costs and adjust flights to suit changing situation," he said adding the airline has set budget of 5.3 billion baht (US$151.86 million) for the voluntary retirement scheme.
The number leaving excludes those that will reach retirement age in 2015, he said.
Thai Airways aims to cut operating costs by up to 9 billion baht this year, Charumporn said.