Due to the impact of the COVID-19 pandemic, Thai AirAsia has announced a mass layoff and furlough extension, despite Thailand’s official reopening of borders on November 1.
According to Tassapon Bijleveld, executive chairman of Asia Aviation (AAV), the announcement made to the airline’s employees explained the company’s hardships and struggles during the pandemic, forcing it to scale down its fleet size and workforce, so as to keep the company afloat.
Mr Tassapon said due to the Covid crisis, Thai AirAsia had to maintain furloughs and pay cuts, and would assess the situation every two months and would gradually remove the cuts when its financial situation improves.
He added the airline had already reached the lowest point which was in the third quarter, and it estimated that domestic flights should fully recover by mid-2022, while international flights would gradually resume. The best-case scenario for the airline is that 50% of international flights resume by the end of next year.
According to the announcement, the airline is deciding on the number of employees to be laid off and will make an official announcement next week. The company is also offering an early retirement program. (NNT)