Thai Airways International (TG, Bangkok Suvarnabhumi) management says it will lay off 1'500 workers this year as part of plans to cut THB4billion (USD126million) in overheads over the next two years. The new Thai military junta prioritized a restructuring plan for the loss-making carrier last month which, among other things, aims to cut over 6'000 posts by 2018. At present, Thai employs 25'000 staff with an additional 5'000 employed via third party contractors.

"The recovery plan will take root over the next two to three months and we will see in the next five years that Thai Airways will return to become a world-class carrier once more," Montri Chamrieng, vice president of Thai Airways Engineering, told Reuters.

Last week, Thai announced it had revised its financial outlook with it now expecting to post a profit in the last quarter of this year - its first in five successive quarters. However, it still expects to post an overall net loss for the current financial year.

The airline has attributed losses to high operating costs and a continued decline in passenger numbers exacerbated by the country's recent political and social unrest.

Thai has also moved to rationalize its route network which will see the rationalization of its European route network coupled with the expansion of services to Japan and China.

"Japanese and Indian customers are returning and European routes are doing better," Chamrieng said. "The route that is (still) of concern is the Australian route."

Thai Smile (Bangkok Suvarnabhumi) has also begun to reorient its business model with all flights to be transferred from Bangkok Suvarnabhumi to Bangkok Don Mueang by late October. The move will allow Thai to better fight Low Cost Carriers such as Thai AirAsia (FD, Bangkok Don Mueang) and Thai Lion Air (SL, Bangkok Don Mueang).

A meeting last week between Thai, Thai Smile and Nok Air (DD, Bangkok Don Mueang) executives culminated in the signing of a joint cooperation agreement between Thai Smile and Nok Air (DD, Bangkok Don Mueang) in which the two carriers agreed to coordinate their respective schedules so as to avoid route duplication.

According to the Thai media, Nok will likely continue to concentrate on serving domestic routes and a limited regional network in the Mekong area while forging ahead with its longhaul LCC venture, NokScoot (Bangkok Don Mueang), set to launch on September 1.

Thai Smile and Thai meanwhile, will reassign their routes according to traffic patterns and demand. Effective October 28, Thai will take over Thai Smile's Hyderabad International and Delhi International routes "due to a high number of transfer passengers". In return, Thai Smile will launch flights to Hong Kong International and Vientiane from Don Mueang.

In the long-term, Thai Smile's Bangkok Don Mueang operations will comprise 23 domestic destinations alongside 12 international.