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President Piyasvasti Amranand said that through hard work the reductions came from various measures under THAI's cost reduction measures, which cover the cut in unnecessary expenses as well as revision in work processes to increase productivity and efficiency.  

The Bt11.84 billion amount is equivalent to 15 per cent of actual cost reductions in fiscal year 2009.

 

"The Company began implementing non-fuel related expenses at the start of the world economic recession that affected the commercial airline industry with a decline in passenger demand, as a means of managing its finances and remain competitive.   The cost reductions are in areas that may be reduced without impacting safety, quality, or standards of services.   As these reductions succeed in reducing corporate expenses, the company continues to implement these cost cutting measures," he said.

 

For the first nine months, the majority of cost reductions were achieved through areas such as personnel-related expenses, flight crew and cabin crew costs, marketing, sales, advertising, leases on aircraft, engines, and spare parts as follows:

  Ø      Personnel-related expense reduced by 12.5 per cent from last year

Ø      Overtime reduced by 47.7 per cent from last year

Ø      Flight crew and cabin crew expense reduced by 26  per cent from last year

Ø      Administration expenses reduced by 19.0 per cent from last year

Ø      Sales & Advertising expense reduced by 19.3 per cent from last year

Ø      Flight operational expense reduced by 67 per cent from last year

Ø      Flights service fee   (non-fuel expense) reduced by 15.6 per cent from last year

Ø      Aircraft maintenances reduced by 21.5 per cent from last year

Ø      Rental of aircraft and spare parts reduced 63.9 per cent from last year