Despite filing for bankruptcy with outstanding debts of 200 billion baht, Thailand’s national carrier said there will be no layoffs for now.
Thailand’s national carrier Thai Airways International (THAI) has assured its employees their jobs are safe for at least a year despite plans to downsize its fleet as part of a rehabilitation plan to keep the company afloat.
The embattled airline, which has outstanding debts totaling 200 billion baht, filed for bankruptcy last month seeking protection to continue business pending debt restructuring and rehabilitation, which is expected to take five years.
The Central Bankruptcy Court has agreed to examine its rehabilitation plan in August.
THAI president, Chakkrit Parapuntakul, gave an update to employees on the debt-rehabilitation process and reassured there will be no layoffs for the time being.
“We receive a lot of questions about layoffs and I can assure that the employment status of the staff remains intact. There will be no layoffs, for the time being, as we have to wait for a clear re-organisation plan,” he said.
“Once it is ready we’ll know how many jobs will be retained. Then we will come up with plans and remedies. It will take at least a year before we reach that point,” he added.