Thai Airways International Plc (THAI) said that 4,997 employees have signed up for an early retirement program called “Mutual Separation Plan”, or MSP, as part of the company’s plan to reduce cost in operations and to cope with declining revenues.
The upcoming retirement numbers can be divided into the following:
- 1,918 of MSP Plan A (the first round) which will come to effect on December 1,
- 2,699 of Leave with 20 per cent pay or “LW20”, and
- Another 360 applying for both programs.
The LW20 scheme will provide participants 20 per cent of their salary for six months starting from November 1, 2020 to April 30, 2021. After that, they can decide to sign up for the MSP Plan B around March 2021 to retire on May 1, 2021.
As of October 2020, Thai Airways has around 19,000 employees in total, according to local media. This means that the early retirement program will reduce the company’s employees by around 26 per cent.
Earlier in September, THAI’s rehabilitation plans were approved by Thailand’s Central Bankruptcy Court. The court appointed Ernst and Young as well as six of the current TG board to help oversee the plan.
All of the airline’s international flights have been suspended and they have shut down their overseas offices since March 25 due to the coronavirus pandemic and economic fallout.
Chansin Treenuchagron, THAI’s acting president, said that the company couldn’t match previous revenue through cargo flights, repatriation flights, domestic routes, and souvenir shops.
“The company has consistently communicated with employees and the programs have been welcomed,” Chansin added.
THAI stock price traded at 2.92 baht per share at 11.52 a.m. on Friday, equal to its prior price, with a traction value of 616,240 baht.