Thai saves 10.3bn baht on non-fuel expenses
[Flight Global : 4 DEC 209]
Thai Airways International has saved 10.3 billion Thai baht ($310 million) on non-fuel expenses in the first three quarters of this year, as the airline works to reduce its debt.
It
expects to achieve 11.84 billion Thai baht in savings, or a 15%
reduction in costs, in the whole of 2009, says the carrier.
"Cost reductions resulted from cutting unnecessary expenses as
well as revising work processes to increase productivity and
efficiency," adds the airline.
The cuts were in areas like personnel-related expenses, flight
crew and cabin crew costs, marketing, sales, advertising, leases
on aircraft, engines and spare parts.
For example, overtime was reduced by 48% from a year ago, and
flight operational expenses were cut by 67%.
The Star Alliance carrier, which has a 160 billion Thai baht
debt, says it will continue to implement the cost cutting
measures.
Thai appointed a new president in June and embarked on a
four-year plan to turn the airline around.