Thai Airways (THAI) execs will see a change in their benefits this year once the carrier’s recently approved Cost Management Strategy takes into effect this year.

Hoping to cut costs of up to 602.45 billion baht per year, the carrier said at its Board of Director’s Meeting last week that taking into account of the sustainability of the carrier, fairness to all employees as well as benefits to stakeholders, it would reduce allowance outside of basic salaries.

Among the changes includes the cancellation of meeting allowances for those participating in Board meetings and other executive meetings this year while members of the Joint Management and Employee Relations Committee will also forego meeting allowances this year.

The carrier’s president, executive vice president and managing directors have all agreed to lose one month pay and signed to only 11 month pay for fiscal year 2012 while THAI officers will remain open for business during public holidays.

Holiday periods will also take a cut this year, with executive vice presidents, vice presidents and business unit managing directors seeing their vacation days trimmed from 28 days to 24 days.

The Cost Management Strategy comes into affect after the carrier reported a weaker peak season in December last year.

Despite cabin factors increasing to 68.1 percent for the month compared to November 2011, the carrier said it was an “exceptionally weak” figure particularly for its strongest point of the year.

During the same Meeting, THAI also announced the appointment of a new Board Member to replace a former member.