Airlines are scrambling to shave costs as the slump in travel demand caused by the coronavirus cuts deep into revenue, with some airlines opting to reduce pilots' and crew members' salaries.
Business plans and revenue targets have to be revised after flights to China and other destinations were affected by the outbreak.
The International Air Transport Association expects passenger traffic in Asia-Pacific to decline by 8.2% this year, with revenue slumping $27.8 billion.
Nok Air chief executive Wutthiphum Jurangkool said the carrier reduced operating costs by 50% last year, but the sudden spread of the virus has prompted the airline to further tighten expenditure.
He said almost all of the 500 pilots and crew members agreed to reduce their per diem to help airlines offload the cost burden.
"Pilots and crews voluntarily proposed this idea, and we stopped 30 routes to China," Mr Wutthiphum said. "Luckily, we still have strong domestic routes where Thai customers account for 90% of traffic."
The airline has revised its business plan this year, including flight schedules and new route expansion, based on an estimate that the pandemic will be controlled within seven months.
Before the outbreak, China was one of the main destinations Nok Air earmarked for expansion. Now it will reassess the plan once the outbreak subsides.
A pilot who asked not to be named said the airline hasn't announced a clear statement regarding salary policy, but crew members have been told that leave without pay is an option for them.
Normally, a co-pilot will get an average per diem of 100,000 baht from 80 flight hours per month and a fixed monthly salary of about 120,000 baht. For captains, the salary can be as high as 180,000 baht.
The pilot said the airline cut off other financial incentives, including a tax subsidy scheme for pilots. The tax rate for pilots is usually 25-30% of income. The airline will compensate them with other non-tax fringe benefits such as transport expenses (from home to airport) instead.
Another pilot who works at a low-cost airline and requested anonymity said average flight hours this month have been reduced to 43 from the typical 70-80 hours. This pilot expects activity to revive around April and for operations to gradually return to normal.
Tourism and Sports Minister Phiphat Ratchakitprakarn said Thai tourists should be concerned about their health and postpone trips to risky areas like Japan, South Korea, Hong Kong, Macao and Singapore.
Mr Phiphat urged Thais to take domestic trips instead. He is poised to propose a new round of tourism stimulus measures in the aftermath of the censure debate.
