In a big cost-cutting drive, Thai Airways International may sell its Sydney office and about 30 other local and overseas office buildings and staff residences. Even the sale of its corporate headquarters has not been ruled out.
Nineteen overseas and 11 local buildings could be listed for sale, according to THAI president Charamporn Jotikasthira.
The office building in Sydney and the staff residence in London were likely to be among the first properties to be sold, he told the Bangkok Post.
The move would help reduce costs of managing and maintaining the assets, the paper quoted Charamporn as saying.
THAI’s Sydney office is located at 75 Pitt Street in the heart of the city’s CBD.
There was no plan to sell THAI headquarters on Vibhavadi Rangsit Road (the highway that connects Don Muang Airport with Bangkok) “for the time being”, Charamporn said.
That would be among the last to be sold, if need be.
The planned sales would be based on how much the airline needs each building and each location.
Charamporn acknowledged that asset sales were a sensitive issue that could affect the image of the airline. He plans to propose the sale plan to THAI’s board in September.
In other moves, Charamporn said THAI would introduce a quick-response revenue management system to match fares of rival airlines within the hour. Flight schedules and aircraft deployment would be improved as well. The developments will happen in October or November.
Although THAI posted heavy net losses is each of the past two years it posted a net profit of THB 4.54 billion (AUD 172 million) in the first quarter this year.
Written by Peter Needham