Bangkok: Thailand's troubled national carrier Thai Airways hopes to turn the corner by next year following the implementation of a business rehabilitation plan which entails divesting ageing aircraft and non-core assets and lowering the fleet size.
The plan will start to improve Thai Airways International Plc's earnings this year or next year, Kulit Sombatsiri, director-general of the State Enterprise Policy office, said.
The plan, approved by the State Enterprises Policy Commission, also known as the superboard, includes divesting ageing aeroplanes and non-core assets, scrapping unprofitable routes, lowering the size of its fleet and offering an early retirement programme.
The airlines has already suspended flights from Bangkok to Madrid, Moscow and Johannesburg and from Phuket to Seoul to stem losses.
The superboard earlier allowed the national carrier to cut its staff numbers to 20,000 from 25,000, selling 22 ageing aircraft from a combined 102 in its fleet, dispose of non-core businesses such as hotels, delay delivery of new aeroplanes and cut its annual capital expenditure.
The airline's net loss widened to 15.6 billion baht last year from 12.05 billion baht the previous year, according to the Stock Exchange of Thailand.
Kulit said the rehabilitation plan would cut operating costs and raise revenue. Falling fuel prices would also give a boost to airlines's bottom line.
