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Thai Airways Plans To Buy Or Lease 34 Planes


Jai Dee

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Thai Airways plans to buy or lease 34 planes

The board of Thai Airways International THAI.BK approved plans on Wednesday to lease or buy 34 Boeing and Airbus passenger planes as part of a 10-year plan to replace the airline's ageing fleet.

Details were still be worked out, but the national carrier planned to buy or lease 20 Airbus A321-200 aircraft and lease 14 Boeing 787 Dreamliners, president Apinan Sumanaseni told reporters.

The board approved a deposit of $3 million for the Airbus order, which could cost up to $1 billion if the airline decided to buy them, he said.

"We haven't decided whether to buy or lease the A321s. That depends on the new government," he said of the coalition administration still being negotiated after December's general election.

"For the 787s, we have to work on the details and propose it to the board again," he said, adding he expected delivery of the leased aircraft to begin in 2012.

Over the next 10 years, the airline wants to procure 65 aircraft worth 400 billion baht ($12 billion) to upgrade its 91-plane fleet. It plans to decommission 47 aircraft more than 20 years old.

Thai Airways expected a "cabin factor" -- the percentage of seats sold -- of 82 percent in December, and an average 80 percent in the January-March period, but that would drop to 76-77 percent in the April-May low season, Apinan said.

Higher fuel costs would drag its revenues down in the financial 2007/2008 year, although the airline had raised fuel surcharges to offset the higher costs, Apinan said.

"We plan to raise the fuel surcharge by April," he added.

Shares in Thai Airways closed unchanged at 32.25 baht on Wednesday, when the Thai main index dropped 0.77 percent. ($1=33.12 Baht)

Source: Reuters - 17 January 2008

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Thai Airways to lease 14 Boeing 787s, buy 20 Airbus A321s

The board of national carrier Thai Airways International PCL has approved the lease of 14 Boeing 787 aircraft and the purchase of 20 Airbus A321 aircraft, President Apinan Sumanaseni said Wednesday.

The deals are part of its plan to procure 65 new aircraft over the next 10 years.

"The procurement of those two models would help the airline maintain its annual revenue growth of 4%,"Apinan told reporters.

Thai Airways plans to solicit bids for the aircraft leasing deal in the middle of the year. The leases would be for 10-12 years and the new aircraft are scheduled to provide services from 2012, Apinan said.

"We have to lease these aircraft since their delivery couldn't be in time if the company goes through the purchasing process," he said.

The board also approved the purchase of 20 Airbus A321 aircraft and a downpayment of $3 million. The planes will cost a total $900 million, with the first to be delivered in 2012.

Under the airline's procurement plan, new aircraft will include eight jumbo Boeing 747-8 planes and a mix of Boeing 737-900, Boeing 787-9, Airbus A350, and Airbus A321 aircraft.

The board also agreed to sell two Airbus 300-600s, in line with a policy of retiring aircraft after 20 years of service.

Source: Dow Jones Marketwatch - 17 January 2008

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if it means cheaper airfare - than great, I would come back flying with them, as I was doing for years, before they outpriced themselves. Hope it will happen sometimes, because I did really like flying with them - great service, food, baggage allowance

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