Thai Airways says cost reduction plan working

After five months of their new cost reduction plan, Thai Airways says that it has managed to save THB8.1 billion (USS238 million), well on its way to save THB10.8 billion for the full year.

In the January to May period, Thai reduced non-fuel expenses by approximately 8,100 million Baht or 18.9% compared to the same five months last year, says Thai Airways.

“These cost reductions would not affect safety standards nor lower quality of service,” said Norahuch Ployyai, Thai Airways Executive Vice President Operations.

“THAI has aimed to reduce non-fuel related costs of 10,840 million Baht during 2009 by cutting unnecessary expenses, personnel-related costs, as well as revising work processes to increase productivity and efficiency.”

Thai Airways said that the savings have been achieved through several areas including leases on aircraft, marketing and advertising cuts, as well as personnel-related expenses.

A new review group has been appointed by the Thai Airways board to look at catering expenses overseas to see if operations can be reassessed.



Source = e-Travel Blackboard: 
To read this article online, please visit
http://www.etravelblackboardasia.com/article.asp?nav=2&id=63745