United Kingdom
United States
Asia Pacific
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
Related News Stories:
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.
Kittipong Prapattong’s Plan for Thailand’s Tourism Growth: Taxes, Visas, and Campaigns
James Jin: Didatravel’s Journey from China to Global Reach and the Impact of AI on Travel
Darien Schaefer on Pensacola’s Evolution: From Small Town to Global Destination
Florida Tourism’s Next Frontier: Dana Young on Expanding Beyond the Classics
Patrick Harrison on Tampa Bay Tourism’s Resilience and Marketing Strategy
Bubba O’Keefe on Clarksdale’s Vibrant Music Scene
Commemorating Elvis and Embracing Tupelo’s Culture with Jennie Bradford Curlee
Craig Ray and the Expansion of the Blues Trail
Presenting Mississippi’s Cultural Trails with Katie Coats
Robert Terrell: A Journey Through BB King’s Influence
Rochelle Hicks: Celebrating Mississippi’s Musical Legacy
Exploring Jacksonville with Katie Mitura: The Flip Side of Florida
Dozens fall ill in P&O Cruises ship outbreak
Turkish Airlines flight in emergency landing after pilot dies
Boy falls to death on cruise ship
Protestors now targeting Amsterdam cruise calls
Unexpected wave rocks cruise ship