MIAMI – Bangkok Airways (PG) has announced it will take extensive cuts in staff and operating costs to cope with the downturn in business due to the novel coronavirus outbreak.
The proposed cutbacks will include decreasing flight frequencies, cutting salaries for airline executives, reducing employee benefits, returning station managers to Bangkok and ordering a leave without pay from 10-30 days for all staff.
The cutbacks will be put into place on Sunday and will remain in effect until further notice.
In a press release published today, Bangkok Airways president Puttipong Prasarttong-Osoth announced that, “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 to the current crisis.”
PG currently operates a fleet of Airbus a319’s, a320’s and ATR 42/72’s, totalling 40 aircraft.
COVID-19’s impact on international aviation
We can expect smaller airlines in Asia without extensive capital to cut costs in the coming months due to the Coronavirus outbreak.
Many airlines in Asia have already waived cancellation fees and have cut flight frequencies to accommodate the reduction in travel to and from Asia.
Airways will continue to post detailed reports on the deadly virus fallout and how the epidemic is dramatically affecting the commercial aviation industry.