Thai AirAsia to furlough 75 per cent of workers
Struggling Thai AirAsia is furloughing three-quarters of all employees in a drastic move to stay in business.
With a resurgence of Covid-19 infection across several Thai provinces since late last year, the aviation sector has been dealt a hammer blow.
It is asking 75% of the workforce to take leave-without pay for four months from February.
Before the pandemic Thai AirAsia had nearly 6,000 workers.
It is the second round of furloughs but is more severe than the first.
The airline says only 10 of its 62 plane fleet have been operational since April 2020 when Thailand imposed its first lockdown.
"Before the resurgence, we had 40 planes serving domestic flights. But since the re-emerging of the outbreak, some provincial lockdowns have made it impossible for people to travel and passenger demand has dropped significantly at every airport," said Tassapon Bijleveld, Executive Chairman of main shareholder Asia Aviation Plc.
With little hope of financial assistance from the government any time soon, Tassapon said the airline is trying to secure loans from banks.
"The International market should recover in the last quarter of this year, but only slowly. Half of the global population must be vaccinated before international travel can resume," Tassapon added.
In the first nine months of 2020, the budget airline flew 6.6 million passengers, which is a 60% year-on-year decline.
Written by Ray Montgomery, Asia Editor
TravelMole Editorial Team
Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
TAP Air Portugal to operate 29 flights due to strike on December 11
Qatar Airways offers flexible payment options for European travellers
Airlines suspend Madagascar services following unrest and army revolt
Air Mauritius reduces frequencies to Europe and Asia for the holiday season
Major rail disruptions around and in Berlin until early 2026