Salary halved for boss of Bangkok Airways
Bangkok Airways Plc (BA) will impose stringent cost-reduction measures, including cutting the salaries of high-ranking executives, in response to the global economic slowdown and the impact of the Covid-19 virus, it said on Friday (February 28).
Thai Airways International (THAI) had earlier also announced a reduction of between 15 and 25 per cent in salaries and other perks for executives, from the president down, to trim costs in the midst of the virus outbreak.
“Due to the economic downturn and the outbreak of Covid-19 affecting various industries worldwide, particularly the tourism and aviation sectors, Bangkok Airways has reviewed and adjusted its strategic plan in response,” said BA president Puttipong Prasarttong-Osoth.
The plan includes measures to reduce expenditures in order to continue effective business operations. The measures will be in effect from Sunday “until further notice”.
They include:
• A decrease in flight frequency and flight terminations on certain routes according to passenger demand
• Salaries halved for the CEO/president, executive vice president of corporate administration and senior vice president of finance and accounting
• No salary increments in 2020 for department heads
• Certain benefits reduced for all management and employees
• All station managers (overseas and elsewhere in Thailand) to return to Bangkok
• All staff take leave without pay of 10-30 days depending on job level
The airline said the measures will not affect aviation and flight operation safety or passenger services.
BA’s total revenue last year was Bt28.6 billion, up by 2.4 per cent compared to 2018. Net profit was Bt356.7 million, up by 35.3 per cent.
The airline carried 5.86 million passengers last year, down 1.6 per cent from 2018.
