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BANGKOK, THAILAND - THAI budget carrier Nok Air has cut 200 staff to cope with heavy losses due to high global oil prices and political turmoil in the kingdom, an official from the airline said on Thursday.
Mr Sehapan Chumsai, executive vice president of the low-cost offshoot of flag carrier Thai Airways, said slashing jobs among pilots, crew and ground staff would leave 540 employees in its operations.
'This is the last measure that we have to do to enable the company and the majority of staff to move forward. We have suffered from high oil prices and political turmoil in the country,' Mr Sehapan told AFP.
The Thai stock market has fallen more than 25 per cent since anti-government street protesters began a campaign to unseat the government in late May, taking over the grounds of the Thai prime minister's offices.
Nok Air will pay 20 million baht (nearly S$710,000) in compensation as well as one-month's salary to staff who had lost their jobs, Mr Sehapan said.
The job cuts are the latest measures by the airline to reduce losses, which were reported at around 100 million baht two months ago.
Nok Air has already slashed 200 outsourced workers, cut the size of its fleet, reduced flights and raised ticket prices to cut losses, which have mainly been brought about by high oil prices.
Aviation officials predict high fuel prices could change the industry's landscape after Asian airlines ambitiously expanded their fleets years ago when demand for low-cost carriers looked brighter. -- AFP
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