BA Introduces Measurement to Mitigate Impact from Coronavirus Outbreak

30/03/2020

Bangkok Airways Public Company Limited (BA) addressed regarding to the outbreak of Covid-19 continues to spread and intensify, global aviation has been severely affected from reduced volume of travel, therefore as to adjust for business survival, BA was absolutely necessary to announce the measure to maintain operation of the business, details as follows

The suspension of all 30 flight routes, including suspend all 20 international routes from March 29 to October 24, 2020 and 10 domestic routes (from totals 17 routes) in summer schedule (from April to October 2020) i.e. Bangkok-Chiang Rai, Bangkok-Krabi, Chiang Mai-Mae Hong Son, Chiang Mai-Phuket, Chiang Mai-Krabi, Chiang Mai-Samui, Krabi-Samui, Phuket-at Yai, Phuket-U-tapao and Samui-U-tapao.

While continues to operate 7 domestic routes i.e. Bangkok-Chiang Mai, Bangkok-Phuket, Bangkok-Lampang, Bangkok-Trat, Bangkok-Sukhothai, Bangkok-Samui and Samui-Phuket with reduce flight’s frequency and adjust fleet by utilizing ATR aircraft fleet.

Although, BA would likely to be impact by decreasing revenue, but the company already settled a measurement to deal with revenue reduction and expense management as follows: the reduction of salary and remuneration of all employees at 10-50% based on employment level and position, compliance with Leave-Without-Pay policy, reduce or cancel welfare and benefit of all employees, and reduce operation expenses in all stations by relocating staffs back to head office.

For the operation costs such as trading, advertisement and other activities including information technology, will be reduced as well. Moreover, BA will negotiate ro reduce flight operation expenses (i.e., rental free, ground handling charge, parking fee, air navigation fee, and fuel excise tax) together with reduce number of aircraft in operation and negotiate with aircraft lessors and request for additional credit line from Financial institutions and negotiate to adjust repayment profile.