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Temporary salary cut for THAI boss, top execs

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Temporary salary cut for THAI boss, top execs 

By THE NATION

 

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THAI president Sumeth Damrongchaitham

 

Thai Airways International (THAI) will announce a reduction in salaries and other perks of between 15 and 25 per cent for executives from president down to trim costs following the impact from the novel coronavirus outbreak.

 

THAI president Sumeth Damrongchaitham said the cut would take effect from March 1 and last for six months.

 

The national flag carrier has felt the pinch of the outbreak, which has resulted in a decline in passenger numbers. It has also reduced its flights on many routes, including those to China and Japan. This situation has prompted the carrier to cut costs.

 

The salaries of those in the executive vice president level will be slashed by 20 per cent and their travelling expenses cut by 30 per cent.

 

Vice presidents will see their salaries cut by 15 per cent and travelling expenses by 20 per cent.

 

The president’s salary will be cut most, Sumeth said.

 

The carrier will launch additional measures if the situation does not improve after six months, he added.

 

Source: https://www.nationthailand.com/business/30382821

 

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-- © Copyright The Nation Thailand 2020-02-26

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The national flag carrier has felt the pinch of the outbreak

 

I would say it has also felt the pinch for about the last half a dozen years. 

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these cuts don't go far enough ....  this airline is losing billions of baht year after year.

They will go belly up real soon ... 

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3 minutes ago, steven100 said:

They will go belly up real soon ... 

 

The powers that be will NEVER allow THAI to fold. The loss of face would be immense. The Minsitry of Finance is the majority shareholder.

 

Total debt (owned no doubt by local banks) is estimated at 240 billion baht.

 

Each Board of Director member (15 in total) make ~ 1 million baht per year for attending meetings. Sweet gig, considering its just one of hundreds of "boards" available.

 

See pg 76 - 2018 Annual report...  http://thai.listedcompany.com/misc/ar/20190409-thai-ar2018-en.pdf

 

 

tgbod.jpg

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10 minutes ago, mtls2005 said:

 

The powers that be will NEVER allow THAI to fold. The loss of face would be immense. The Minsitry of Finance is the majority shareholder.

 

Total debt (owned no doubt by local banks) is estimated at 240 billion baht.

 

Each Board of Director member (15 in total) make ~ 1 million baht per year for attending meetings. Sweet gig, considering its just one of hundreds of "boards" available.

 

See pg 76 - 2018 Annual report...  http://thai.listedcompany.com/misc/ar/20190409-thai-ar2018-en.pdf

 

 

tgbod.jpg

I hear ya ... but no one is using TG or very few especially from Thailand. 

I think they will have a pretty rough ride through 2020.

No company can survive on face alone. 

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I don't read anything about curtailing those complimentary seats. Turn them into revenue generating and there's some more savings.

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5 hours ago, webfact said:

The salaries of those in the executive vice president level will be slashed by 20 per cent and their travelling expenses cut by 30 per cent.

 

Vice presidents will see their salaries cut by 15 per cent and travelling expenses by 20 per cent.

Have to laugh at the cutting travelling expenses bit in an apparent travel ban climate

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I do not see many airlines that are expecting to have a good year for 2020. In fact it would not surprise me to hear of routes being cancelled, and other routes only available 3 days per week, instead of 7 days per week. The China based airlines must be suffering a lot as well.

Geezer

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4 minutes ago, Stargrazer9889 said:

I do not see many airlines that are expecting to have a good year for 2020. In fact it would not surprise me to hear of routes being cancelled, and other routes only available 3 days per week, instead of 7 days per week. The China based airlines must be suffering a lot as well.

Geezer

 

THAI (TG) have already announced significant cuts in service, as have most other airlines.

 

Service cuts do limit expenses a bit but leave many other issues, like staffing and servicing debt. One assumes staff will have to be temporarily furlowed (forced vacation, no pay) with line staff suffering first. Pilots will be unhappy at some point but what can they do?

 

Not too many people "want" to fly these days.

 

Not so much worried about CV19, but rather getting stuck somewhere for an extended period of time.

 

 

 

 

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