BA, Qantas lay off Don Muang staff
Two major carriers, British Airways and Qantas, plan to lay off all 60 employees at Bangkok's Don Muang airport to cut operating costs.
The airlines have sent an internal letter to all departments, saying they will terminate the employment of 60 staff working at Don Muang airport on ground services and land operations on September 29. According to the letter, the airlines - which run joint operations in Thailand - need to reduce operating costs by cutting all employees there. However, the carriers will keep on all staff at their city offices. BA and Qantas have hired a local outsourcing company - SA Services Co Ltd - to manage their human resources when they move to Suvarnabhumi Airport next month. A source working at BA said the airline had informed employees of its lay-off plans late last month. The 60 staff will receive 10 months' severance pay. The same source questioned whether the lay-offs were reasonable given the companies' performance. According a statement by the joint Qantas and BA Bangkok office, the lay-offs coincide with the move from Don Muang to Suvarnabhuni Airport on September 28 and a transfer of their customer and lounge services to SA Services. As a result there the carriers' customer service staff will no longer be needed and their positions will become redundant. The airlines are working with the 60 staff to assist them in finding new jobs. The decision follows an evaluation of the needs of both businesses to consolidate activities and create increased flexibility and efficiency in line with the corporate strategy of both airlines, the statement said, adding that the transfer will have no impact on customers. It was based on costs and efficiency and was not down to the performance of the current Qantas and BA team, it said. Meanwhile, airlines continue to be affected by ripples from the recent alleged foiled terrorist plot in Britain. BA said future bookings had been hit, and Continental Airlines said security concerns had dampened its per-seat revenue growth. BA and other carriers reported strong August traffic results as fliers had largely stuck to their original travel plans despite the terrorism scare. However, they are watching new ticket purchases to see whether such fears or concerns over the inconvenience caused by heightened security measures cause travellers to stay at home, or seek alternate modes of transportation. Industry analysts say the impact is unlikely to slow the worldwide resurgence in air travel, but that more time is needed to gauge the full effect. - Suchat Sritama, The Nation
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