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Bangkok Airways Embarks on Cost-Cutting Measures
1st Mar 2020
Bangkok Airways has embarked on a restructuring plan to offset the negative impact of the coronavirus disease 2019 (Covid-19) on its business.
In a statement last week, Bangkok Airways President Puttipong Prasarttong-Osoth said that the company will send employees on unpaid leaves for 10 to 30 days, cut the salaries of executive vice president and senior vice presidents, cancel and reduce the frequency of some flights, the suspension of salary raise, and reduced benefits for all workers. The cost-cutting measure takes effect today, Sunday, and will remain in effect until further notice.
“Due to the economic downturn and the outbreak of Covid-19 affecting various industries worldwide particularly the tourism and aviation sectors, Bangkok Airways has reviewed and adjusted its strategic plan in response to the current crises," he said.
Details of the reduced flight frequency were not divulged. Bangkok Airways flies to several destinations in Thailand as well as internationally such as Singapore, Hong Kong, Vietnam, Laos, Myanmar, and India, among others.
Bangkok Airways aside, other Thai-based airlines that have implemented cost-cutting measures were Thai Airways and Nok Air to tighten expenses. Last week, Nok Air said that it axed four of its pilots and reduced the per diem allowance of some 500 pilots and crew members as proposed by its employees.
Meanwhile, Thai Airways said it cancelled flights to nine countries such as Japan, South Korea, Singapore, Philippines, Bangladesh, China, Hong Kong, Taiwan, and United Arab Emirates effective this month and most days in March. It waived fees for booking changes for all affected passengers, and allowed for the rerouting or full refunding of payments.
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