February 26, 2020 / 9:19 AM / a month ago

Thai Airways executives take pay cut because of coronavirus

BANGKOK (Reuters) - Thailand’s national carrier announced salary cuts for management and other airlines lowered targets as travel slowed from the coronavirus outbreak and the number of cases in the country reached 40 on Wednesday.

Thai Airways Pcl (THAI.BK) said senior management voluntarily reduced their salaries by 15% to 25% for six months beginning March in a bid to cut expenses amid reduction of passenger travel.

“Thai Airways has implemented measures such as reduction of operational expenses and delayed unnecessary investments,” said the airline president, Sumeth Damrongchaitham.

Senior management, including the president and vice presidents, would also reduce their transport allowances by 20% to 30%.

Thai health officials urged the public to refrain from traveling abroad and asked airlines to tone down promotions after two more patients tested positive for the virus following a trip to Japan, bringing the total number of cases in the country to 40.

“Even though tickets are cheap, it could be your last holiday,” Health Minister Anutin Charnvirakul told reporters.

Last week, the Thai Airways reduced flights to major cities including those in China, Japan and South Korea.

Asia Aviation Pcl (AAV.BK), the joint owner of the low-cost carrier Thai AirAsia, revised its target for 2020 to 20.5 million passengers, lower than the 22.15 million passengers it carried in 2019.

Reporting by Chayut Setboonsarng; Editing by Raju Gopalakrishnan

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