THAI introduces voluntary resignation scheme offering up to 30-month salaries

[webfact]

THAI introduces voluntary resignation scheme offering up to 30-month salaries, medical welfare, free tickets



BANGKOK: -- Thai Airways International (THAI) yesterday announced what it described as a special resignation programme that will retain rights for medical welfare and free tickets for participants.

Under such programme which it said is not an early retirement offer, 2,000 general staff members will be accepted, and not permitted to pilot and crew members.

Kanok Thongphueak, vice-president for human resources and management, said the special resignation programme will be open for application for one month, and expects to draw applications above the target.

He said the programme is special because it limits applicants at 2,000, and offers up to 30 months of salaries.

Besides, they still will enjoy medical welfare and free air tickets under the company’s regulation.

Qualified applicant must have at least 15 working years with the company, he said.

He reiterated that the programme is not early retirement programme as the company still has early retirement offer for staff.

But sources in the Transport Ministry said the programme is part of THAI’s plan to cut 5,000 jobs from the current 25,000 staff members. The 5,000 staff include its annual 500 staff retiring each year.

The redundancies are required under the rehabilitation plan adopted to resolve its huge losses.

The airline posted a net loss of 15.57 billion baht last year, and 12 billion baht in 2013.

Under the rehabilitation, unprofitable routes will also be terminated, while routes that suffers loss but have trend to recover will be have flights reduced for recovery in 6-12 months.

Flights will be increased in profitable routes, the source said.

Source: http://englishnews.thaipbs.or.th/thai-introduces-voluntary-resignation-scheme-offering-up-to-30-month-salaries-medical-welfare-free-tickets


-- Thai PBS 2015-04-03

[Costas2008]

Not surprised they are running at a loss when they are employing 5000 extra people not needed.

Hope things will change for Thai air as they are the national carrier.

But as I read that the people going can retain some benefits like medical welfare and free air tickets.....I have my doubts.

[Lupatria]

Instead- feed them your catering 5 times a day and they will leave freely

[FloridaExport]

It looks like they plan on running at a loss for the next 2.5 years at least. It will probably get worse when all these people without jobs start taking more free vacations. Not even taking into account the new sanctions that will require more cost by the airline.

[EyesWideOpen]

Silly idea. They may be losing good people as well as bad.

Instead bring in an outside farang manager who has never

heard the word face, and have him start trimming the dead

wood from this tree of Thai Airways. And for Christ's sake

stop with the free tickets !!!

Edited April 3, 2015 by EyesWideOpen

[Prbkk]

Not surprised they are running at a loss when they are employing 5000 extra people not needed.

Hope things will change for Thai air as they are the national carrier.

But as I read that the people going can retain some benefits like medical welfare and free air tickets.....I have my doubts.

The problem is they are employing at least 10,000 too many , probably more. But the snouts in the trough will continue with the free tickets. Powerful union supporting the establishment , so a good deal for staff.

[upena]

Stop serving terrible food on 45 minute domestic flights.

[greenchair]

In other countries, when a company is running at a loss.

Staff are layed off with a 6 month salary and most certainly no more benefits which were a large contributor to the losses anyway. Lay people have been telling them for years, that their fares are double and triple of other airlines.

It costs my family 150,000 baht for a return ticket on thai.

Compared to 65,000 on a cheaper airline. Even the wealthy, would choose the cheaper option for a family of four.

25,000 employees all with rights to free travel every year.

Most of their planes must be full of free thai staff.

It's simple really.

Lower fares = higher profits.

Higher fares = lower profits.

Even 7/11 employee can figure that out.

[klauskunkel]

2.5 years of salaries will not help "to resolve its huge losses", unless these salaries come from a totally different budget than THAI operating budget and since THAI is a state-run business..., enough speculation...

However:

Under the rehabilitation, unprofitable routes will also be terminated, while routes that suffers loss but have trend to recover will be have flights reduced for recovery in 6-12 months.
Flights will be increased in profitable routes, the source said.

,...somebody did complete Business 101, wonder who that was?

[Soutpeel]

My advice to some working for Thai right now take the money and run as if they don't come back to profitability the next round of lay offs may not be so " generous "

[bangkokfrog]

In other countries, when a company is running at a loss.

Staff are layed off with a 6 month salary and most certainly no more benefits which were a large contributor to the losses anyway. Lay people have been telling them for years, that their fares are double and triple of other airlines.

It costs my family 150,000 baht for a return ticket on thai.

Compared to 65,000 on a cheaper airline. Even the wealthy, would choose the cheaper option for a family of four.

25,000 employees all with rights to free travel every year.

Most of their planes must be full of free thai staff.

It's simple really.

Lower fares = higher profits.

Higher fares = lower profits.

Even 7/11 employee can figure that out.

Not unless they can use a calculator !!!

[doremifasol]

Where is the catch?

[Daniel Ingalls]

Stop giving out to 5,000 staffers free air fare tickets! Then maybe you could make a profit!

[useronthenet]

Really needs an independant enquiry, as to how they got themselves into so much debt? Where has all the money gone ?

[realenglish1]

Thai airways still does not get it and I can see there never will. I was going to book a flight from BKK to Hong Kong The average price was about 9000 baht except Thai aways was offering a fair for 16,000 baht

Why should I pay 16,000 baht for a second rate airline when I can fly for 9000. Reducing staff with save some money that is without question however unless Thai reduces rates on regional flights this so called restructuring idea is a waist of time.

Everyone please bookmark this page and 2 years from now revisit it and tell me what day Thai filed for bankruptcy It is going to happen as long as managment cling to the idea that people what to fly with the flag carrier airline instead of another .

People don't care. They care about getting from point A to point B unless it is a long haul flight then depending on the level of service people will pay a slight premium for it but not 75%

WAKE UP THAI AIRWAYS

[trainman34014]

Typical Gutless way Thai's go about what they call ''business''. The pretenders now running the Airline know only too well what really needs to be done....Mass redundancy.

Any capable CEO/MD who runs a business knows that taking out heads is the fastest way to save money but these twits are hamstrung by the fact that almost all Thai employees are 'connected' and they don't have the moral courage to clear out all the unwanted and unneeded staff for fear of upsetting Daddy's, Mummy's, Uncle's and Grandparents of these time and space wasters.

Thai Airways is no more than a club airline for The Elite and all its own employee's. There is no way back to profitability and the best thing ANY sensible passenger can do is boycott the company from any future travel plans and let them continue 'playing with it' until the logo is painted out once and for all.

[MobileContent]

Not surprised they are running at a loss when they are employing 5000 extra people not needed.

Hope things will change for Thai air as they are the national carrier.

But as I read that the people going can retain some benefits like medical welfare and free air tickets.....I have my doubts.

The problem is they are employing at least 10,000 too many , probably more. But the snouts in the trough will continue with the free tickets. Powerful union supporting the establishment , so a good deal for staff.

+1 and on top of that they have over 350 executives including a hundred Vice Presidents, 20 Executive Vice Presidents and then a few hundred Directors and Executive Directors. For me THAI shows that the Thai Army (Airforce) have sucked that baby dry and now they need a bailout.

The management should be all charged from the day THAI was launched. My former neighbor a retired AirForce official had to pay 120,000 Baht to get his son approved as an inflight crew-member on THAI flights.

[geriatrickid]

Thai airways still does not get it and I can see there never will. I was going to book a flight from BKK to Hong Kong The average price was about 9000 baht except Thai aways was offering a fair for 16,000 baht

Why should I pay 16,000 baht for a second rate airline when I can fly for 9000. Reducing staff with save some money that is without question however unless Thai reduces rates on regional flights this so called restructuring idea is a waist of time.

Everyone please bookmark this page and 2 years from now revisit it and tell me what day Thai filed for bankruptcy It is going to happen as long as managment cling to the idea that people what to fly with the flag carrier airline instead of another .

People don't care. They care about getting from point A to point B unless it is a long haul flight then depending on the level of service people will pay a slight premium for it but not 75%

WAKE UP THAI AIRWAYS

No.

YOU SHOULD GET REAL INSTEAD.

Is your comparison valid? No it is not.

Yes Air Asia offers a base fare that is lower than TG. Add in the extra fees. and the fare is nothing spectacular. TG's fare is similar to Cathay and is less than Bangkok Airlines and Emirates. It is more expensive than the budget carriers like Hong Kong Airlines who fly out of BKK. It also offers a better schedule You can score a decent fare on Thai Orient as well, but you get what you pay for in life. If you want to fly with a 15 kg baggage allowance, a 29 inch seat pitch, and pay for seat selection, and have no service, then by all means go on one of the LCCs out of DMK. TG is a full service airline. FD and the others who cater to the budget oriented customers are not. Please, by all means, stay with the low end carriers characterized by the gate lice, the pax who clip their toenails while overflowing in their seats, and who piss on the toilets. Please enjoy the cramped conditions and ambience, TG is not for you.

[MobileContent]

Munich - Berlin - Munich

Depart Thu 07 May 2015 - Return Fri 22 May 2015

Aeroflot $854‎

Emirates $905

Finnair $928

KLM $934‎

KLM, Air France $940

Turkish Airlines $990

Air France $991‎

Lufthansa, Austrian Airlines $999‎

Air Berlin, Finnair $1,036‎

Etihad $1,039‎

Aeroflot, Thai Airways Intl $1,050‎ (16 hours Stopover in Munich)

Air Berlin, Thai Airways Intl $1,063 (14 hours Stopover in Munich)

Lufthansa $1,114‎

Qatar Airways $ 1290

Thai Airways Intl $2,821‎

I am not sure what happen to Lufthansa but looks they stopped the code sharing or due to the fact that no flights can be sold.

For a rubbish economy ticket on THAI the price is 2821 USD per person.

THAI's problem is that they don't have an IT strategy. and they use ebookers and edreams exclusive. THAi should do the same as Emirates and Qatar Airways and direct price the tickets with the large meta engines.

[geriatrickid]

The severance package is not unusual.

Under Thai labour law the basic starting point is.

Jor. An employee who has worked for more than 10 years consecutively shall be paid severance pay for not less than 300 days at the most recent rate of basic pay or the basic pay received in respect of the preceeding 300 days in the case of an employee who receives his basic pay based upon his output.

Considering the intent of the airline to remove higher seniority employees voluntarily, the offer is not that unusual and will result in a savings to the airline. if 20+ year employees take it instead of waiting for redundancies. Under the collective agreement(s), the severance would be slightly higher.

As for the free tickets, they are subject to conditions and are nothing special. Users of the option will be flying off peak, in the lowest fare bucket and will have a tough time getting anywhere other than hotspots like Surat Thani, Udon or Ubon via craptacular Thai Smile.

[geriatrickid]

Munich - Berlin - Munich

Depart Thu 07 May 2015 - Return Fri 22 May 2015

Aeroflot $854‎

Emirates $905

Finnair $928

KLM $934‎

KLM, Air France $940

Turkish Airlines $990

Air France $991‎

Lufthansa, Austrian Airlines $999‎

Air Berlin, Finnair $1,036‎

Etihad $1,039‎

Aeroflot, Thai Airways Intl $1,050‎ (16 hours Stopover in Munich)

Air Berlin, Thai Airways Intl $1,063 (14 hours Stopover in Munich)

Lufthansa $1,114‎

Qatar Airways $ 1290

Thai Airways Intl $2,821‎

I am not sure what happen to Lufthansa but looks they stopped the code sharing or due to the fact that no flights can be sold.

For a rubbish economy ticket on THAI the price is 2821 USD per person.

THAI's problem is that they don't have an IT strategy. and they use ebookers and edreams exclusive. THAi should do the same as Emirates and Qatar Airways and direct price the tickets with the large meta engines.

The TG flight to Frankfurt is USD $1116.

The TG flight to Munich is USD $1099.

This is as per the Thai Airlines website.

Bangkok to Munich

Flight 1 Thursday, May 07, 2015

Departure: 00:50 Bangkok, Thailand - Suvarnabhumi International

Arrival: 07:05 Munich, Germany - Munich International, terminal 2

Airline Thai Airways International TG924

Aircraft: Boeing 747 All Series Passenger

Fare type: Economy Restricted

Munich to Bangkok

Flight 1 Friday, May 22, 2015

Departure: 14:25 Munich, Germany - Munich International, terminal 2

Arrival: 06:05 +1 day(s) Bangkok, Thailand - Suvarnabhumi International

Airline Thai Airways International TG925

Aircraft: Boeing 747 All Series Passenger

Fare type: Economy Restricted

Legend: = Operated by THAI Smile, THB = Thailand Baht ,USD = U.S. Dollar

Price

Travellers Fares * Surcharges/Taxes

1 adult(s) x (22,485.00 + 13,205.00) = 35,690.00 THB (1,099.61 USD)

total for all travellers 35,690.00 THB (1,099.61 US

Direct flights are always more expensive than connecting flights.

Not everyone wants to experience the misery of connecting in IST, CDG, AUH, DOH. And as nice as Helsinki is, the schedule sucks, and is a waste of time to connect.

Edited April 3, 2015 by geriatrickid

[tingtongfarang]

Munich - Berlin - Munich

Depart Thu 07 May 2015 - Return Fri 22 May 2015

Aeroflot $854‎

Emirates $905

Finnair $928

KLM $934‎

KLM, Air France $940

Turkish Airlines $990

Air France $991‎

Lufthansa, Austrian Airlines $999‎

Air Berlin, Finnair $1,036‎

Etihad $1,039‎

Aeroflot, Thai Airways Intl $1,050‎ (16 hours Stopover in Munich)

Air Berlin, Thai Airways Intl $1,063 (14 hours Stopover in Munich)

Lufthansa $1,114‎

Qatar Airways $ 1290

Thai Airways Intl $2,821‎

I am not sure what happen to Lufthansa but looks they stopped the code sharing or due to the fact that no flights can be sold.

For a rubbish economy ticket on THAI the price is 2821 USD per person.

THAI's problem is that they don't have an IT strategy. and they use ebookers and edreams exclusive. THAi should do the same as Emirates and Qatar Airways and direct price the tickets with the large meta engines.

The TG flight to Frankfurt is USD $1116.

The TG flight to Munich is USD $1099.

This is as per the Thai Airlines website.

Bangkok to Munich

Flight 1 Thursday, May 07, 2015

Departure: 00:50 Bangkok, Thailand - Suvarnabhumi International

Arrival: 07:05 Munich, Germany - Munich International, terminal 2

Airline Thai Airways International TG924

Aircraft: Boeing 747 All Series Passenger

Fare type: Economy Restricted

Munich to Bangkok

Flight 1 Friday, May 22, 2015

Departure: 14:25 Munich, Germany - Munich International, terminal 2

Arrival: 06:05 +1 day(s) Bangkok, Thailand - Suvarnabhumi International

Airline Thai Airways International TG925

Aircraft: Boeing 747 All Series Passenger

Fare type: Economy Restricted

Legend: = Operated by THAI Smile, THB = Thailand Baht ,USD = U.S. Dollar

Price

Travellers Fares * Surcharges/Taxes

1 adult(s) x (22,485.00 + 13,205.00) = 35,690.00 THB (1,099.61 USD)

total for all travellers 35,690.00 THB (1,099.61 US

Direct flights are always more expensive than connecting flights.

Not everyone wants to experience the misery of connecting in IST, CDG, AUH, DOH. And as nice as Helsinki is, the schedule sucks, and is a waste of time to connect.

Can you explain why thai airways are in so much debt? Truth is although i know so many frequent travelers i dont know any who use thai air any more including myself.

Edited April 3, 2015 by tingtongfarang

[geriatrickid]

Munich - Berlin - Munich

Depart Thu 07 May 2015 - Return Fri 22 May 2015

Aeroflot $854‎

Emirates $905

Finnair $928

KLM $934‎

KLM, Air France $940

Turkish Airlines $990

Air France $991‎

Lufthansa, Austrian Airlines $999‎

Air Berlin, Finnair $1,036‎

Etihad $1,039‎

Aeroflot, Thai Airways Intl $1,050‎ (16 hours Stopover in Munich)

Air Berlin, Thai Airways Intl $1,063 (14 hours Stopover in Munich)

Lufthansa $1,114‎

Qatar Airways $ 1290

Thai Airways Intl $2,821‎

I am not sure what happen to Lufthansa but looks they stopped the code sharing or due to the fact that no flights can be sold.

For a rubbish economy ticket on THAI the price is 2821 USD per person.

THAI's problem is that they don't have an IT strategy. and they use ebookers and edreams exclusive. THAi should do the same as Emirates and Qatar Airways and direct price the tickets with the large meta engines.

The TG flight to Frankfurt is USD $1116.

The TG flight to Munich is USD $1099.

This is as per the Thai Airlines website.

Bangkok to Munich

Flight 1 Thursday, May 07, 2015

Departure: 00:50 Bangkok, Thailand - Suvarnabhumi International

Arrival: 07:05 Munich, Germany - Munich International, terminal 2

Airline Thai Airways International TG924

Aircraft: Boeing 747 All Series Passenger

Fare type: Economy Restricted

Munich to Bangkok

Flight 1 Friday, May 22, 2015

Departure: 14:25 Munich, Germany - Munich International, terminal 2

Arrival: 06:05 +1 day(s) Bangkok, Thailand - Suvarnabhumi International

Airline Thai Airways International TG925

Aircraft: Boeing 747 All Series Passenger

Fare type: Economy Restricted

Legend: = Operated by THAI Smile, THB = Thailand Baht ,USD = U.S. Dollar

Price

Travellers Fares * Surcharges/Taxes

1 adult(s) x (22,485.00 + 13,205.00) = 35,690.00 THB (1,099.61 USD)

total for all travellers 35,690.00 THB (1,099.61 US

Direct flights are always more expensive than connecting flights.

Not everyone wants to experience the misery of connecting in IST, CDG, AUH, DOH. And as nice as Helsinki is, the schedule sucks, and is a waste of time to connect.

Can you explain why thai airways are in so much debt? Truth is although i know so many frequent travelers i dont know any who use thai air any more including myself.

I responded to a post that contained erroneous information. I am certainly not privy to TG's financials outside of those which are publicly filed, however, what I do know is that the losses are to a certain extent not all of TG's doing. Sometimes I am amazed that people living in Thailand are oblivious to the obligations some Thai nationalized companies assume and the impact it has on their finances. Thai Airlines is in a difficult position because it can't control some of its costs because there are transferred obligations.

If I was more blunt, I could be arrested under the computer crimes act.

[NCFC]

Mate, learn a little bit about Geriatric kid before u post.

[Srikcir]

Thai's financial problems go beyond operational mismanagement and this scheme will do little to make the company profitable in the forseeable future. The cause is that it is a majority State-owned company. The State considers the airlines as part of its national security and personal asset. As such normal business decisions are not driven by purely stakeholder equity interests.

All of the State's ownership in the airlines should be sold to investors who have experience owning and operating airlines in the Asian market and with long-haul carriers. But the State cannot sell its interests because of the Foreign Business Act that restricts foreign ownership to a maximum of 49%.

After considerable pressure from many foreign embassy finance attaches last year, the Prayut has made implicit approval of the use of a loophole in the law that allows Thai-owned stock to be pledged to foreign owners that effectively gives foreign investors control of a Thai company. But there is no guarantee such a loophole will remain, especially after the Junta's enactment of Article 44.

This arilines economic plight won't end anytime soon.

[jerojero]

Employees better take this golden opportunity, because after bankruptcy nobody gets anything, except a boot in the rear on the way out!

[maidee]

being thai and living for today

they will soon start fights to get a place in this winning lottery

30 months of salary + stuff, to quit ?

[ChrisY1]

Stop serving terrible food on 45 minute domestic flights.

Why does anyone need a meal on a 45min. Flight??.......

Maybe because they can??

Sent from my GT-P7510 using Thaivisa Connect Thailand mobile app

[madmitch]

There's nothing wrong with this in principle, though perhaps 30 months severance is a bit excessive. If they are over-subscribed they can pick who they want to let go, though they'll probably just choose the cheapest options rather than get rid of some older deadwood.

As for free flights, it isn't uncommon for retirees, for example, to keep their free flight perks if they've worked for an airline. What we don't know is what the free flights entail. I doubt if it's free flights for life all over the world, like Government officials seem to have. It's probably more like a few free flights a year but taxes and fees have to be paid. Anyone know?

They are making an effort. Lower domestic fares and voluntary redundancies is a start. There's a long way to go.

[fritzzz25]

Thai airways still does not get it and I can see there never will. I was going to book a flight from BKK to Hong Kong The average price was about 9000 baht except Thai aways was offering a fair for 16,000 baht

Why should I pay 16,000 baht for a second rate airline when I can fly for 9000. Reducing staff with save some money that is without question however unless Thai reduces rates on regional flights this so called restructuring idea is a waist of time.

Everyone please bookmark this page and 2 years from now revisit it and tell me what day Thai filed for bankruptcy It is going to happen as long as managment cling to the idea that people what to fly with the flag carrier airline instead of another .

People don't care. They care about getting from point A to point B unless it is a long haul flight then depending on the level of service people will pay a slight premium for it but not 75%

WAKE UP THAI AIRWAYS

No.

YOU SHOULD GET REAL INSTEAD.

Is your comparison valid? No it is not.

Yes Air Asia offers a base fare that is lower than TG. Add in the extra fees. and the fare is nothing spectacular. TG's fare is similar to Cathay and is less than Bangkok Airlines and Emirates. It is more expensive than the budget carriers like Hong Kong Airlines who fly out of BKK. It also offers a better schedule You can score a decent fare on Thai Orient as well, but you get what you pay for in life. If you want to fly with a 15 kg baggage allowance, a 29 inch seat pitch, and pay for seat selection, and have no service, then by all means go on one of the LCCs out of DMK. TG is a full service airline. FD and the others who cater to the budget oriented customers are not. Please, by all means, stay with the low end carriers characterized by the gate lice, the pax who clip their toenails while overflowing in their seats, and who piss on the toilets. Please enjoy the cramped conditions and ambience, TG is not for you.

Comparing THAI Airways to Cathay or Emirates is like comparing a Yugo ok, a Camry to a Beemer or a Benz. The quality of service on the former compared to the latter is night and day. I flew in THAI biz class twice this year on long haul routes, and once in Emirates long haul in biz class and the difference was extreme. You speak of "full service airlines" but TG service is not in the same standard as CX or EK. The LCC's are exactly that.... low cost, cramped, uncomfortable, charge for everything (Air Asia likely has a credit card swipe machine on the oxygen masks to start the flow).

I just think that you are giving TG way too much credit.

Avg WIDE BODY ages in service

Cathay 8.2 yrs - Net Income - HK$ 5,501 million (2011) (todays rate www.xe.com in THB 22.9 billion)

Emirates 6.36 yrs - Net Income - 829 million AED (2014 )(todays rate www.xe.com in THB 7.315 billion)

THAI 9.71 yrs - Net Income - LOSS of12.04 billion THB (2013)

When you look that CX and EK have hundreds of new aircraft on order, and TG is struggling to off load some boat anchors (the A340-500's they left to rot as they didn't want to take the lowball offers that they received a few years ago which was 1/3 of the "book price") which they will be lucky to get 10 million for each of them in this market.

THAI

Prices for Wi-Fi Packages

Smart Phone Package 3 MB = USD 4.50

10 MB = USD 14.50

Laptop/iPad Package 10 MB = USD 14.50

20 MB = USD 28.50

EK

Enjoy 10MB of data for free, or buy 500MB for just USD 1.

Three of our A380s don’t have free Wi-Fi yet. But you can buy 500MB for USD 1, and also on select Boeing 777s

Cathay wifi is not listed as of yet.

TG needs some serious outside help, and cleaning up the slugs that many previous posters mentioned as well as bringing change to the culture (hierarchy) of the workforce.