A different perspective-Thai Airways Sends 5000 Employees Into Early Retirement, Financial Reserves To Run Out By December

[4wheels 119]

In part,"

We have covered Thai Airways for years and I’ve always said that the company has WAY too much staff which is a result of their “fat cat” management style where people are being hired and put into positions with good pay packages even though the company doesn’t really have much need for more employees.

Normally companies would just grow out excessive staff by natural retirements but the Thai Airways modus operandi has always been to serve as an ATM for connected individuals and families. It doesn’t just include employment and pay but also generous benefit packages for employees, former management and the countless dignitaries in the country. These chickens have now come home to roost and unfortunately the staff is in the firing line.

I’m not sure how the pension / retirement funds are structured as far as old staff is concerned or what would happen to existing employees. Knowing Thailand there would be an upheaval if they left everything with a wet towel in their hand, especially since the former state enterprise has many well connected employees.

https://loyaltylobby.com/2020/11/05/thai-airways-sends-5000-employees-into-early-retirement-financial-reserves-to-run-out-by-december/?omhide=true

[midlifecrisis 4,048]

If they have a company pension plan they are behind the times. I can't speak for Europe and Asia but US companies saw the writing on the wall decades ago. They understood they couldn't earn enough to pay the liability.

[DangerRuss 17]

...just posted on bangkok post that they are looking to unload their older planes to help keep the company afloat.  Very dire situation moving forward 

[midlifecrisis 4,048]

1 hour ago, DangerRuss said:

...just posted on bangkok post that they are looking to unload their older planes to help keep the company afloat.  Very dire situation moving forward 

They have had a number of "bailouts" from on high. Is there any hope of another?

[TheFiend 1,181]

8 hours ago, DangerRuss said:

...just posted on bangkok post that they are looking to unload their older planes to help keep the company afloat.  Very dire situation moving forward 

10 x B747-400
6 x 777-200
6 x 777-300
6 x A340-600
5 x A340-500
1 x A300-600
2 x 737-400

The A340's have been in storage for years, the 772s and 773s have been in service until recently but are old and looking their age and along with the 747 were coming up to retirement anyway, the global COVID situation has brought forward their retirement.

 

[DangerRuss 17]

48 minutes ago, TheFiend said:

10 x B747-400
6 x 777-200
6 x 777-300
6 x A340-600
5 x A340-500
1 x A300-600
2 x 737-400

The A340's have been in storage for years, the 772s and 773s have been in service until recently but are old and looking their age and along with the 747 were coming up to retirement anyway, the global COVID situation has brought forward their retirement.

 

...cannot be any worse than the worst flight I ever took on Russian Aeroflot

So, a colleague and I left Moscow back to bkk.  The plane had no business or 1st class...all coach seats.  My seat was old and stained and had springs protruding out, had to use my jacket in order to actually be able to sit in my seat. All the fold down tables were duck taped shut as they were all broken. There were 4 bathrooms on the plane but 2 of them were broken and boarded up with particle board. When the plane took off, the entire plane shook violently as if it would break apart.  There wasn’t a single beverage or food service the entire flight.  I was lucky that my work colleague had a couple water bottles and snacks on him that he shared with me.  During flight, the rattle and shaking within the plane was severe.  The landing wasn’t pleasant either

[4wheels 119]

He is the article I was about to post:

https://thepointsguy.com/news/thai-airways-boeing-747s-for-sale/?utm_source=TPG%20Daily%20Newsletter&utm_medium=email&utm_campaign=1694136&utm_usr=c7d890faeb5d7513b2d5ce72548d4b16522e03d7a469a7aea52607bf059a91e1&utm_msg=6380297e830146118843271344842693&utm_date=2020-11-06

[4wheels 119]

On 11/5/2020 at 5:59 PM, midlifecrisis said:

If they have a company pension plan they are behind the times. I can't speak for Europe and Asia but US companies saw the writing on the wall decades ago. They understood they couldn't earn enough to pay the liability.

My airline must be an exception. I have received a pension check every month since October 2005. The PBGC guarantees airline pensions if the carrier goes belly up.It applies to those making a certain amount and my category is protected to 95% of what I'm making. Pilots were not so fortunate. Many of us became very familiar with the PBGC when airlines were filing bankruptcy in 2005,including mine, but my company is well ahead of what is needed to keep the payments coming. We receive a letter showing what % is in the fund annually. 

[sailingbill 1,035]

Probably a minor thing compared to fuel but i saw the staff having a difficult time getting those Pad Krapao boxes out on our way to Issan. A minor savings but why bother for a less than an hour flight.    There were thousands of people, families in KK for Loy Krathong. I hear very quiet in Pattaya.

[midlifecrisis 4,048]

9 hours ago, 4wheels said:

My airline must be an exception. I have received a pension check every month since October 2005. The PBGC guarantees airline pensions if the carrier goes belly up.It applies to those making a certain amount and my category is protected to 95% of what I'm making. Pilots were not so fortunate. Many of us became very familiar with the PBGC when airlines were filing bankruptcy in 2005,including mine, but my company is well ahead of what is needed to keep the payments coming. We receive a letter showing what % is in the fund annually. 

That's great! Most companies bailed. I worked for HP for a time. They grandfathered in many of us but new employees were excluded. All of us were offered the ability to be in the 401K plan. HP had a company contribution for those in the 401K plan. Plus they had a discounted employee stock purchase plan. I forget the percentages for both. Company matches for most companies were based on company profitability. Ebb and flow.

The other thing about company pension plans was you needed to be vested. With layoffs you could lose out on a percentage of retirement. This applies in the government employee sector but there are fewer layoffs generally. My son wanted to move out of California but postponed that until he was 100% vested (ten years) in the state's pension plan that was applicable to his union. He worked in a county hospital. Now he works in private hospital and has a 401K.

A very complicated subject