Thai Airways Offloads Boeing and Airbus Jets in Slimdown Effort

[webfact]

 

BANGKOK-THAILAND: In a strategic move towards financial recovery, Thai Airways International (THAI) has successfully sold its entire fleet of 18 decommissioned aircraft. This fleet includes a mix of six Boeing 777-200s, six Boeing 777-300s, and six Airbus A380s.

 

CEO Chai Eamsiri revealed that contracts for the sale of all 18 aircraft were finalised on 12th May. The paperwork for six of these jets has already been completed, with the remaining dozen soon to follow.

 

While the sale has infused some much-needed funds into the airline, it did incur a non-cash impairment charge amounting to 3.33 billion baht. This significantly dented THAI’s net profits for the first quarter of 2024.

 

Despite the financial hit, THAI reported a 10.7% increase in total revenue for Q1 2024, reaching 45.9 billion baht compared to the same period last year. The uptick was fuelled by robust passenger numbers and higher ticket prices on routes to Europe, Australia, and Japan.

 

 

However, the company also saw a sharp 22.5% rise in total expenses, climbing to 34.88 billion baht. This was largely due to increased flight operations, more destinations, and a higher volume of passengers. Additional costs arose from the baht's depreciation and escalating ground handling fees and raw material prices.

 

Exchange rate fluctuations alone resulted in a loss of 5 billion baht, while impairments related to aircraft and aviation equipment exceeded 3 billion baht. These factors culminated in a net profit of just 2.42 billion baht, marking an 80.7% decrease from the same quarter last year.

 

As of 31st March, THAI’s active fleet comprises 73 aircraft, an increase from 70 at the end of 2023. The expanded fleet is enabling the airline to boost frequencies on high-demand routes, which is expected to further enhance revenue in the coming quarters.

 

Top file photo: Thai Airways, Boeing 777-200, courtesy Wikipedia

 

-- 2024-05-15

 

Get our Daily Newsletter - Click HERE to subscribe

[Ben Zioner]

Ok, TA sold some scrap metal. Maybe it's me but I have the impression that this article doesn't say anything more than "Thai Airways sold some mothballed aircraft". I have have to guess that it is some "strategic realignment" of their fleet, and that some Thai hisos will get richer from the commissions on the purchase of replacements.

[JoePai]

B.A. is looking to buy more s/h A380's

[retarius]

Keep the Airbus stuff and dump the Boeing. 

[Robert Paulson]

Nothing to do with Boeings being modern day coffins

[Georgealbert]

This again brings out more anti Boeing, single line comments.

 

Yes Boeing’s reputation is in pieces, but we are currently seeing that every event or story involving a Boeing aircraft on social media or the news, there is immediately, and sometimes without considered opinion or expert insight, that Boeing are bad or to be blamed, even if is human error, airlines faults, maintenance issues or just selling aircraft are involved.

 

Boeing is not going to disappear, as airlines have little choice to still order new Boeing aircraft, as the market is dominated by the them and Airbus. Neither company can keep up with current demand and it would be impossible for Airbus to supply all aircraft on their own. Embraer, Bombardier and Comac are years/decades away from challenging that domination 

 

The International Air Transport Association (IATA) recently stated that “ Flying is the safest mode of transport, with one accident for every 1.26 million flights. At this level of safety, on average a person would have to travel by air every day for 103,239 years to experience a fatal accident.”

 

In 2023 there was only a single fatal accident involving a turboprop aircraft, which resulted in 72 fatalities. Yeti Airlines Flight 691, from Kathmandu to Pokhara in Nepal, on 15 January 2023, an ATR 72, from an Franco-Italian aircraft manufacturer

 

For comparison’s sake, 158 people died in aviation accidents in 2022, with more than 65,000 dying on roads in the UK, US and EU in the same year.

[scorecard]

OK but there's good reports about aircraft being manufactured / used in China.

 

I wonder when some of the mainstream international aircraft operators will start buying Chinese? I'm guessing the aircraft would be quite a bit cheaper.

 

(Are they already certified / licensed to fly international routes?)

[Georgealbert]

4 hours ago, scorecard said:

OK but there's good reports about aircraft being manufactured / used in China.

 

I wonder when some of the mainstream international aircraft operators will start buying Chinese? I'm guessing the aircraft would be quite a bit cheaper.

 

(Are they already certified / licensed to fly international routes?)

That is the Commercial Aircraft Corporation of China, Ltd., COMAC C919, the first one was delivered to China Eastern Airlines on 9 December 2022 and was put into commercial passenger service on 28 May 2023. The plane did  receive permission to fly to the Singapore air show 2024.

 

The first aircraft marketed by COMAC is the ARJ21 regional jet, 

 

It is only licensed and certified to fly domestically in China and has yet to start the certification process outside China. The company has stated it will seek EASA (European Union Aviation Safety Agency) certification first, but will take years.

 

In January 2021, the United States government named COMAC as a company "owned or controlled" by the People's Liberation Army and thereby prohibited any American company or individual from investing in it.

 

The catalog price of $99 million per aircraft for the basic version of the C919 and the extended-range version of the C919, which has a catalog price of $108 million per aircraft.

 

China expects annual production capacity of C919 planes to reach 150 in 5 years time, so even if is certified outside China it is a long way away from challenging Airbus and Boeing.

 

Chinese media is promoting plans to design a new wide body C939, but that seems to be attempting to run, before it has even started walking.

 

Current orders and aircraft shown below.

 

 

Edited May 15 by Georgealbert

[hotchilli]

4 hours ago, Georgealbert said:

Yes Boeing’s reputation is in pieces,

Like a couple of it's 737-Max's.

[Georgealbert]

13 minutes ago, hotchilli said:

Like a couple of it's 737-Max's.

Find attached the latest “Statistical Analysis of Commercial Aviation Accidents” which are produced by both Boeing and Airbus.

 

https://accidentstats.airbus.com/wp-content/uploads/2024/02/20230873_A-Statistical-analysis-of-commercial-aviation-accidents-2024-version.pdf

 

https://www.boeing.com/content/dam/boeing/boeingdotcom/company/about_bca/pdf/statsum.pdf

[bamnutsak]

6 hours ago, webfact said:

and six Airbus A380s

 

I noticed four of the A380s landing SBIA/BKK this morning. They look faded.

 

 

[Georgealbert]

36 minutes ago, bamnutsak said:

 

I noticed four of the A380s landing SBIA/BKK this morning. They look faded.

 

 

The A380s have been parked there since March/April 2020, when Covid shut down flights, 2 more are parked at U-Tapao Airport.

 

All 6 of the A380s were delivered to Thai Airways, between September 2012 and November 2013, and I agree with you the planes look older and faded. The planes have not undergone the regular required maintenance, so will need an overhaul before the new owners can fly them away.

 

 

[Robert Paulson]

The reason Boeing isnt going anywhere is because it’s a designed monopoly. Not because it’s some amazing company that can’t be outdone. Maybe it used to be. 

[metisdead]

An offensive off topic post trolling about road deaths in the UK contravening our Community Standards and the replies have been removed.

[Searat7]

No mention of the 5 A340’s which were sitting around for many years. 6 if you count the one taken by Thai Military. Maybe some were sold

[Georgealbert]

52 minutes ago, Searat7 said:

No mention of the 5 A340’s which were sitting around for many years. 6 if you count the one taken by Thai Military. Maybe some were sold

There were 10 in total, and many rumours over the years, but I believe that the latest information, based on aircraft registration details, is that;

1 was sold to the Royal Thai Airforce.and still being used.

 

3 are currently parked at Don Muang Airport, and have been there since 2012.

 

2 were scrapped and 1 of them is now at the Coffee Wars cafe on 331 highway, with the other broken up at U-Tapao Airport.

 

2 are currently parked at U-Tapoa Airport and have been there since 2015

 

2 are parked at Taiyuan Wusu Airport, China, 2024, after being sold to Hua An Part Co Ltd 

 

 

 

 

Edited May 15 by Georgealbert

[EVENKEEL]

Coming to a Coffee War near you.

[Middle Aged Grouch]

All airlines who want to survive should lay off all their boeings and mainly the 787 that are just flying coffins. More and more travellers refuse to buy tickets if they see that the planes used are Boeings with all the accidents and flaws in Boeing planes.

[Georgealbert]

42 minutes ago, Middle Aged Grouch said:

All airlines who want to survive should lay off all their boeings and mainly the 787 that are just flying coffins. More and more travellers refuse to buy tickets if they see that the planes used are Boeings with all the accidents and flaws in Boeing planes.

A few facts for information, currently there are over 1000 Boeing 787 in service and this aircraft type has only been involved in seven reported accidents and incidents, which has resulted in zero fatalities and no hull losses.

 

The first 787 commercial flight was on 26 October  2011, by All Nippon Airways (ANA) when it flew from Tokyo to Hong Kong.

 

In 2013 the Boeing 787 Dreamliner suffered from electrical system problems stemming from its lithium-ion batteries and was grounded by The FAA on 17 January2013 until 19 April 2013, when it returned to service after approved modifications to the batteries.

 

Link below about people having concerns about flying on Boeing aircraft.

 

https://www.nbcnews.com/news/us-news/travelers-changing-flights-avoid-boeing-airplanes-rcna144158

Edited May 15 by Georgealbert

[stratocaster]

From an aviation website

Nine years old with 30,000 flight hours

The two A380s, HS-TUE and HS-TUF, were the last to join the fleet in October and November in 2013. They have both been put up for "a market survey to find potential buyers for the items listed" on a website called Thai Aircraft Trading. However,

"The actual sale will take place under the business reorganization plan and would require approvals of relevant stakeholders and the Bankruptcy Court."

HS-TUE has flown 3,691 flight cycles and just over 30,600 hours. HS-TUF is not far behind with 3,589 cycles and just under 30,000 hours. There is no initial asking price listed, but we can assume that as far as superjumbos go, it would be a bargain and far below the list price of $390 million.

So what are the chances of Thai actually making a successful sale of it? To be frank, close to non-existent. The only A380 to successfully transition to the second-hand market was the one that went from Singapore Airlines to Hi Fly in 2018.

 

https://simpleflying.com/airbus-a380-for-sale-25-million-dollars/

If you happen to have a spare $25 million, you could become the proud owner of an Airbus A380. One of the giants of the skies was recently listed on Controller, a well-known aircraft buy and trade website, by the California-based CSDS Aircraft Sales & Leasing. Two aircraft listed are suspected to be the two Thai airways aircraft offered for sale.

PS

The 777 200's are all 16 years old.

[Georgealbert]

20 minutes ago, stratocaster said:

From an aviation website

Nine years old with 30,000 flight hours

The two A380s, HS-TUE and HS-TUF, were the last to join the fleet in October and November in 2013. They have both been put up for "a market survey to find potential buyers for the items listed" on a website called Thai Aircraft Trading. However,

"The actual sale will take place under the business reorganization plan and would require approvals of relevant stakeholders and the Bankruptcy Court."

HS-TUE has flown 3,691 flight cycles and just over 30,600 hours. HS-TUF is not far behind with 3,589 cycles and just under 30,000 hours. There is no initial asking price listed, but we can assume that as far as superjumbos go, it would be a bargain and far below the list price of $390 million.

So what are the chances of Thai actually making a successful sale of it? To be frank, close to non-existent. The only A380 to successfully transition to the second-hand market was the one that went from Singapore Airlines to Hi Fly in 2018.

 

https://simpleflying.com/airbus-a380-for-sale-25-million-dollars/

If you happen to have a spare $25 million, you could become the proud owner of an Airbus A380. One of the giants of the skies was recently listed on Controller, a well-known aircraft buy and trade website, by the California-based CSDS Aircraft Sales & Leasing. Two aircraft listed are suspected to be the two Thai airways aircraft offered for sale.

PS

The 777 200's are all 16 years old.

Not disagreeing with what you are implying, as the sales do seem a bit unrealistic, but the sales of these aircraft was announced to the public, on 12 May, by Thai Airways CEO Chai Eamsiri.
 

There is little independent information on these sales available, including who purchased them and prices paid, plus searching the aircraft registrations numbers, shows they have not yet been any updated new details.

 

The “nine years old with 30000 flight hours” seems to be a rehash of the December 2020 report below.

 

https://simpleflying.com/thai-airways-a380-sale/#:~:text=Seven years old with 30%2C000,website called Thai Aircraft Trading.

 

The only current mention is in the document “Management’s Discussion and Analysis for the first quarter of 2024 ended March 31, 2024, for Thai Airways International Public Company Limited and Its Subsidiaries”, with the relevant paragraphs below.

[Ben Zioner]

13 hours ago, Georgealbert said:

A few facts for information, currently there are over 1000 Boeing 787 in service and this aircraft type has only been involved in seven reported accidents and incidents, which has resulted in zero fatalities and no hull losses.

 

The first 787 commercial flight was on 26 October  2011, by All Nippon Airways (ANA) when it flew from Tokyo to Hong Kong.

 

In 2013 the Boeing 787 Dreamliner suffered from electrical system problems stemming from its lithium-ion batteries and was grounded by The FAA on 17 January2013 until 19 April 2013, when it returned to service after approved modifications to the batteries.

 

Link below about people having concerns about flying on Boeing aircraft.

 

https://www.nbcnews.com/news/us-news/travelers-changing-flights-avoid-boeing-airplanes-rcna144158

Totally agree, Boeing have come with an amazing amount of innovation innovation with this aircraft: full composite frame, non bleed air power units, and manufacturing outsourcing. None of which exists at Airbus.

 

However this effort seems to have exhausted the company, as they have been unable yo come up with a true  successor of the 737, and kept upgrading a 60 years old design, resulting in the MAX fiasco.

[Georgealbert]

16 minutes ago, Ben Zioner said:

Totally agree, Boeing have come with an amazing amount of innovation innovation with this aircraft: full composite frame, non bleed air power units, and manufacturing outsourcing. None of which exists at Airbus.

 

However this effort seems to have exhausted the company, as they have been unable yo come up with a true  successor of the 737, and kept upgrading a 60 years old design, resulting in the MAX fiasco.

Yes agree, it is often claimed that James McNerney, CEO at the time and also the first CEO without a background in aviation, made the decision to upgrade the 737 series to 737 MAX instead of developing a proposed new model, and also set up new production facilities, to break the power of the then site unions.

 

Some details in this old report, from 2019, giving the background, that started the slide, into the MAX problems.

 

https://leehamnews.com/2019/03/20/boeing-didnt-want-to-re-engine-the-737-but-had-design-standing-by/

[Danderman123]

Embraer E-jets would be useful for domestic flights, some airline is going to buy some and make a fortune servicing smaller cities.

[Georgealbert]

13 minutes ago, Danderman123 said:

Embraer E-jets would be useful for domestic flights, some airline is going to buy some and make a fortune servicing smaller cities.

Yes there is currently almost 1700 in service and are used by many airlines, since first receiving type certification from the civil aviation authorities of Brazil (ANAC), Europe (EASA) and the United States (FAA) in February 2004.

Currently the largest operators of the E-Jet family are SkyWest Airlines (241 aircraft), Republic Airways (208 aircraft), and Envoy Air (152 aircraft), but are also in service with Alaska Horizon, American Eagle, Delta Connection, and United Express, all US airlines.

Their ability to challenge Boeing and Airbus, is limited, due to limit production numbers, and they also have a current backlog of orders.

 

The E-Jet has been involved in 21 incidents, including eight hull losses

[Danderman123]

9 minutes ago, Georgealbert said:

Yes there is currently almost 1700 in service and are used by many airlines, since first receiving type certification from the civil aviation authorities of Brazil (ANAC), Europe (EASA) and the United States (FAA) in February 2004.

Currently the largest operators of the E-Jet family are SkyWest Airlines (241 aircraft), Republic Airways (208 aircraft), and Envoy Air (152 aircraft), but are also in service with Alaska Horizon, American Eagle, Delta Connection, and United Express, all US airlines.

Their ability to challenge Boeing and Airbus, is limited, due to limit production numbers, and they also have a current backlog of orders.

 

The E-Jet has been involved in 21 incidents, including eight hull losses

But few, if any, in Southeast Asia.

 

I believe I saw some in Kazakhstan last week.

 

For those who don't know, E-jets are more comfortable than Boeing and Airbus products.

Edited May 16 by Danderman123

[Georgealbert]

4 minutes ago, Danderman123 said:

But few, if any, in Southeast Asia.

 

I believe I saw some in Kazakhstan last week.

Yes you may have.

 

Currently aircraft in service in Asia are;

 

Air Astana (Kazakhstan) 5

Bamboo Airline (Vietnam) 5

Buta Airways (Azerbaijan) 8

Colourful Guizhou Airlines (China) 9

Fuji Dream Airlines (Japan) 16

GX Airlines (China) 17

Hebel Airlines (China) 6

J-Air (Japan) 32

Myanmar Airways International 2

Star Air (India) 3

Tianjin Airways (China) 52

 

There are some with Russian airlines, but these are no longer being supported by Embraer.

 

 

[Georgealbert]

Found this video from 2 days ago, happened in Indonesia, the ground crew survived, but was hospitalised with broken leg and hip.

 

See Airbus aircraft can also be dangerous.

 

 

Edited May 17 by Georgealbert

[Georgealbert]

On 5/16/2024 at 12:04 PM, Danderman123 said:

But few, if any, in Southeast Asia.

 

I believe I saw some in Kazakhstan last week.

 

For those who don't know, E-jets are more comfortable than Boeing and Airbus products.

Seems there are actually 4 older Embraer ERJ-135LR aircraft currently flying in Thailand. 2 operated by the Royal Thai Army and 2 operated the Royal Thai Navy.

 

 

Edited May 17 by Georgealbert

[Danderman123]

7 minutes ago, Georgealbert said:

Seems there are actually 4 older Embraer ERJ-135LR aircraft currently flying in Thailand. 2 operated by the Royal Thai Army and 2 operated the Royal Thai Navy.

 

 

Yeah, those aren't real E-jets, no fun to fly in. United still has some for short flights into Mexico.