BANGKOK, 19 October 2020: Thailand’s national airline is offering staff what it calls a “mutual separation” deal as part of the rehabilitation process under the supervision of the bankruptcy court.
Thai Airways International acting president Chansin Treenuchagron, confirmed at the weekend that the airline would offer employees two mutual separation programme plans as it struggles to “maintain its cash flow and drive operational cost efficiency in the long run.”
Earlier in the year, the airline filed for protection with the country’s bankruptcy court. The court subsequently approved the adoption of a rehabilitation process that will result in the introduction of a full-fledged rehabilitation Plan during the second quarter of next year.
According to the media statement, the airline is offering two options.
A Mutual Separation Plan
The option A is open for application 19 to 28 October 2020, and the separation will be effective 1 December. Employees will receive payments according to the package in a 12-month installment plan, with the first payment due in June 2021.
Mutual Separation Plan B
The Take Leave with 20% Pay option is on the table for applications 19 to 28 October. Employees will receive a monthly payment of 20% of their salary during the leave period for six months, 1 November 2020 to 30 April 2021.
Employees who joined the Leave with 20% Pay scheme will be entitled to apply for the Mutual Separation Plan B starting sometime in March 2021 after the Central Bankruptcy Court approves the rehabilitation plan.
Their separation will be effective on 1 May 2021. Employees will receive payments according to the package in a 12-month installment plan, with the first installment due to be paid in June 2021.