Thai Airways to press ahead with maintenance facility after Airbus withdraws

 

FILE PHOTO: Thai Airways airplanes are parked at the tarmac of Suvarnabhumi Airport in Bangkok, Thailand March 25, 2020 REUTERS/Jorge Silva

 

BANGKOK (Reuters) - State-owned Thai Airways International Pcl (THAI.BK) will press on with a project to build a $339 million (273 million pounds) maintenance facility east of Bangkok after partner Airbus (AIR.PA) dropped out due to the coronavirus outbreak, a senior official said on Monday.

 

Airbus has asked not to participate in the investment, citing the impact of the COVID-19 situation on air travel, Deputy Secretary-General for Infrastructure in the Eastern Economic Corridor (EEC) Chokchai Panyayong told a news briefing.

 

The project to build the maintenance, repair and overhaul (MRO) facility is a necessity for Thai Airways and so it will move forward, either on its own or with a partner, Chokchai said, adding that Airbus would still cooperate on technology.

 

The European planemaker on Monday issued a bleak assessment on the impact of the coronavirus, telling the company’s 135,000 employees to brace for potentially deeper job cuts.

 

Some 2.97 million people are reported to have been infected by the novel coronavirus globally and 205,948 have died, according to a Reuters tally.

 

“We are in discussions with our partners in Thailand regarding the most suitable way forward for all parties,” Airbus said in an e-mail to Reuters about the maintenance project.

 

“The content of discussions with partners and customers alike remain confidential.”

 

There is still time for Thai Airways to find a new partner as the navy is only just beginning construction on the facility’s hangar, which will take up to four years.

 

“By then, the COVID situation will have eased. There is an opportunity for either Airbus or Boeing to come in,” Chokchai said.

 

The facility was estimated to cost 11 billion baht ($338.9 million), of which about 7 billion baht would come from the navy’s budget.

 

Thai Airways was also in separate discussions with the government for liquidity support.

 

Thailand on Monday extended a ban on incoming passenger flights until May 31. The Southeast Asian country has reported 2,931 cases and 52 fatalities from the coronavirus.

 

The maintenance hub is part of the government’s project around the joint civil-military U-Tapao Airport, 150 kilometres east of Bangkok.

 

The government expects to sign a 290 billion baht agreement with BBS Joint Venture next month for the development of the airport and aviation city, EEC Secretary-General Kanit Sangsubhan said.

 

The group, selected in February, comprises Bangkok Airways Pcl (BA.BK), train operator BTS Group Holdings Pcl (BTS.BK) and Sino-Thai Engineering and Construction Pcl (STEC.BK).

 

It has chosen Japan’s Narita International Airport Corporation as U-Tapao’s operator.

 

-- © Copyright Reuters 2020-04-27

 

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51 minutes ago, snoop1130 said:

) - State-owned Thai Airways International Pcl (THAI.BK) will press on with a project to build a $339 million (273 million pounds) maintenance facility east of Bangkok after partner Airbus (AIR.PA) dropped out due to the coronavirus outbreak, a senior official said on Monday

They must have TAT writing this stuff .. Airbus pulled the plug back in March even though Thailand tried the " we'll extend the deadline a bit longer " ruse to April in an attempt to stop A B walking .. A B will have to restructure like the rest of the aero industry because of the impact of C V but the decision not to proceed with this is more to do with assets that Airbus will make a considerable contribution to being handed over to Thailand at the end of the agreement with no recompense for A B .. 

 

51 minutes ago, snoop1130 said:

There is still time for Thai Airways to find a new partner as the navy is only just beginning construction on the facility’s hangar, which will take up to four years

Who might that be as Boeing and Airbus provide the majority of commercial airliners used by most carriers .. Unless of course they are thinking of jumping in bed with China's Comac .. 

 

51 minutes ago, snoop1130 said:

By then, the COVID situation will have eased. There is an opportunity for either Airbus or Boeing to come in,” Chokchai said.

What part of " no we are not interested " is he not understanding .. 

 

51 minutes ago, snoop1130 said:

Thai Airways was also in separate discussions with the government for liquidity support.

Just chucking good after bad .. 

Reality of the situation is the airline industry worldwide is facing an overhaul the likes of which has been seen for decades with a lot of National carriers under severe scrutiny .. Thai Airways has been a big loss maker for years not offering the service or competitiveness of many rivals but is asking for a bale out again which if successful will just allow it to gimp a bit longer afore holding the begging bowl out again like a zombie airline .. 

Edited April 27, 20206 yr by Justgrazing
Sp

Nothing much to add here, only a question.

Are Charles Darwin books banned in Thailand?

Thai airways bosses were overheard saying, we dont need Airbus, we have plenty of  highly skilled workers lined up for the important jobs.

Problem is we are going to have to wait until the rice planting is over.

Edited April 27, 20206 yr by colinneil

" Who might that be as Boeing and Airbus provide the majority of commercial airliners used by most carriers .. Unless of course they are thinking of jumping in bed with China's Comac" Credit: Justgrazing

 

Anything is possible in China's next autonomous region!

9 hours ago, Justgrazing said:

What part of " no we are not interested " is he not understanding .. 

Does he really understand English?

51 minutes ago, Grumpy John said:

" Who might that be as Boeing and Airbus provide the majority of commercial airliners used by most carriers .. Unless of course they are thinking of jumping in bed with China's Comac" Credit: Justgrazing

 

Anything is possible in China's next autonomous region!

Except that this type of "hub" already exists and has worked perfectly for many years in the mother country;
why build a second one in a country where professional conscience is not the first quality of workers and technicians?

Sorry khun Chokchai , your brown envelope will stay empty. 

This is about the 20-30% skim....a last ditched effort to squeeze a bit more blood out of Thai!

12 minutes ago, Assurancetourix said:

Does he really understand English?

The only phrase which is clearly understood is " billions of Baht".

 

Airbus (and before them Boeing) understand it as the cost to them of an utterly unnecessary venture.

 

The Navy, Thai Airways and those behind all the Thai participants understand it as a marvelous financial opportunity. Like a dog with a bone, they are not going to give up...

Edited April 28, 20206 yr by JAG

For Thai Airways to have a maintenance base there is a complete waste of money and will just see them hemorrhage more money. How much does it cost to reposition a 747, 777 and other commercial airlines 200 KM down the coast. It probably costs 25,000 bucks a pop to take off and land the planes. Thai Airways maintenance base should always be their home airport which is Suvarnbhumi airport.

 

Of course without Thai Airways there would be no maintenance base project for the big contractors and the Navy to pillage the budgets.

12 hours ago, snoop1130 said:

The project to build the maintenance, repair and overhaul (MRO) facility is a necessity for Thai Airways and so it will move forward, either on its own or with a partner, Chokchai said, adding that Airbus would still cooperate on technology.

I wonder where the engineers will be coming from?

 

Quote:-

 

"and Sino-Thai Engineering and Construction Pcl (STEC.BK)"

Will this company be associated with "Public Health" facilities????

I don't think it is possible to just decide to do commercial aircraft maintenance - a certain level of globally accredited approved competence must be achieved and maintained for both the facility and those that work there ................a very tall order for Thailand to do on their own without huge smelly foreign involvement 

Without a partner that can lend some sort of reassurance to the quality of work performed there, I cannot see it being sought after by airlines other than those chasing the lowest bid and happy to have most of any work done re-done. Of course one reassuring thing is that the entity spouting this news piece believes U-Thapao is 150km east of Bangkok. Perhaps they might start with an offer of a free compass swing?

Four years to build a hangar.......have a word.