Bangkok--30 Jul--Thai Airways
Thai Airways International Public Company Limited has successfully controlled non-fuel expenses during the first 5 months of 2009, with an 8,100 million Baht reduction when compared to the same period last year. The Company has set a goal to achieve 10,840 million Baht in cost reduction this year.
Flg.Off. Norahuch Ployyai, THAI’s Executive Vice President, Operation Department, in his role as Chairman of the Company’s Business Turnaround Cost Reduction Working Group, said that 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. These cost reductions would not affect safety standards nor lower quality of service.
During the first 5 months of 2009 (January-May), the Company has reduced non-fuel expenses by approximately 8,100 million Baht or 18.9%, compared to the same period last year. The majority of the cost reductions were achieved in the areas of leases on aircraft, engines, and spare parts, flight crew and cabin crew, marketing, sales, and advertising, operational non-fuel expenses and personnel-related expenses. These savings were achieved due to a concerted effort and dedicated sacrifices by THAI employees.
The Company’s Executive Board has also appointed a working group to review catering expenses of overseas stations. This working group will negotiate with international catering services companies on the rate of services and make consideration to service provision operations based on each situation.
Due to the world economic crisis and the spread of Influenza A (H1N1), passenger demand has declined, which is why the Company must continue to implement cost control measures. THAI is confident that it will be able to reduce operational expenses in non-fuel related areas as targeted, which is the established goal, for effective cost management and to enhance competitiveness.
Press Release issued by M.L. Ajcharaporn Na Songkhla,
Director of Corporate Communications and Public Relations
Thursday, 30 July 2009 at 16:30 hrs.
International Public Relations Department
Thai Airways International Public Company Limited
Tel : (662) 545-2662 / 2663 / 1711 / 4686 / 1705 / 2720
Fax : (662) 545-3891