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Thai Airways aborts $5bn fleet revamp in bid to shape up

But CEO is reluctant to cut staff or lower wages

Thai Airways' plan to replace its aging fleet was blocked by the country's new coalition government.   © Reuters

BANGKOK -- Thai Airways International has been told by the government, its top shareholder, to scrap its 156 billion baht ($5.13 billion) fleet renewal plan and focus on trimming costs, as it heads toward the third consecutive year of losses.

But with the company resisting painful reforms that would slash its bloated workforce, the government's frustration is mounting.

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