Thai Airways Plans To Order A Total Of 65 New Planes

[george]

Thai Airways plans to order a total of 65 new planes

THAI in market for eight more large jets

BANGKOK: -- Thai Airways International Plc intends to order eight planes that can seat at least 400 passengers as part of a decade-long plan to replace its ageing fleet. The national carrier may add to its existing order for six Airbus A380s or opt for Boeing 747-8s, said vice-president Teeratat Pornpiboon. It will also buy 23 smaller planes, such as 787s or A350s.

THAI plans to order a total of 65 new planes to win more travellers and cut maintenance and fuel costs. It is also retiring about half of its existing fleet, which is on average almost twice as old as those of Singapore Airlines.

''THAI really needs to replace their old planes if they want to compete with other airlines,'' said Jim Eckes, managing director of industry consultant, Indoswiss Aviation in Hong Kong. ''New planes will be critical to THAI because it will help them save costs.''

The 65 new planes also include 20 single-aisle Airbus A320s and fourteen Boeing 787s.

THAI may have to reconsider the 787s as it may be unable to receive the planes when it needs them in 2011 or 2012, said president Apinan Sumanaseni. Boeing has delayed deliveries of the 787 because of production problems.

''We can't get the slots,'' he said. ''If we can lease, we will, at a reasonable price. If we can't, we will have to consider other aircraft such as 777s or A330s.''

Adding new planes will help the carrier cope with fuel prices that have surged 67% in Singapore trading in the past year, as they have more efficient engines. Higher fuel costs contributed to a 54% drop in THAI's net income in the three months ended Dec 31.

The airline's fuel bill for this year will likely rise to more than 80 billion baht, Mr Apinan said. THAI plans to raise its ticket surcharges soon because of the rising fuel prices, he said, without elaboration. It has increased levies twice since October. They cover about 65% of the additional fuel costs.

Unlike rivals Singapore Airlines and Hong Kong's Cathay Pacific Airways, THAI doesn't hedge any of its fuel needs. Hedging allows airlines to lock in prices for future fuel purchases, protecting them against increases.

THAI shares have fallen 25% this year, compared with a 3.6% slide for the benchmark SET Index. The shares closed yesterday at 29.25 baht, down 25 satang, in trade worth 23.9 million baht.

The carrier's first 510-seat A380, scheduled to arrive in 2010, will fly to London, Mr Apinan said. Later ones will fly to Frankfurt and Paris, he added. The double-decker plane has a range of 8,000 nautical miles (14,820 kilometres) and costs $282 million to $302 million, based on catalogue prices.

THAI also has outstanding orders for 15 twin-aisle Airbus aircraft, including eight A330-300s. Airbus gave the airline a discount on the planes, ordered in June, as compensation for delays in the deliveries of the A380s.

-- Bloomberg News 2008-04-05

[dekka007]

Hopefully they wont skimp on the cheapest seats option and cheapest IFE as they did with their A330s and some of their B777's.

[flightcrew1]

Hmmm. Think about it. How often do you see these press releases from Thai that they will be buying/leasing/retiring aircraft. Does it actually happen? If I was go do a search over the last few years regarding the above, I believe their fleet would be newer than that of Singapore or Cathy Pacific. As far as I can tell the only new aircraft they have gotten in the last couple of years are 2 new airbus that they use on the Los Angeles and New York non stop's.

I'm in and out of BKK several times a month for work and some of the aircraft I see that Thai is flying is more than 15years old.

So regarding Thai getting new planes. I will believe it, when I see it (them).

[lomatopo]

Hmmm. Think about it. How often do you see these press releases from Thai that they will be buying/leasing/retiring aircraft. Does it actually happen? If I was go do a search over the last few years regarding the above, I believe their fleet would be newer than that of Singapore or Cathy Pacific. As far as I can tell the only new aircraft they have gotten in the last couple of years are 2 new airbus that they use on the Los Angeles and New York non stop's.

I'm in and out of BKK several times a month for work and some of the aircraft I see that Thai is flying is more than 15years old.

So regarding Thai getting new planes. I will believe it, when I see it (them).

While it is true that TG's average fleet age is probably greater than similar Asian carriers it's probably less than many legacy US carriers. Plenty of newer aircraft A340-500 (4); A340-600 (5); 777-200 (14); 777-300 (6); A330-300 (12). The changes in governments have really hobbled TG's management, IMO, as each new Transport Minister and new Board members want to exercise their over-sight, and potentially be involved in some additional income associated with large purchase decisions in Thailand.

They've got to replace the A300's and plan for growth. 777/747-8/787 's would fit the bill satisfying growth markets in India, China and Europe. But alas they can't stick with a plan through a government change.

[Fantasteak]

Thai Airways plans to order a total of 65 new planes

THAI in market for eight more large jets

BANGKOK: -- Thai Airways International Plc intends to order eight planes that can seat at least 400 passengers as part of a decade-long plan to replace its ageing fleet. The national carrier may add to its existing order for six Airbus A380s or opt for Boeing 747-8s, said vice-president Teeratat Pornpiboon. It will also buy 23 smaller planes, such as 787s or A350s.

A decade long plan that is a decade too late.

[bkk_mike]

If they actually refitted the interior of their 747s they wouldn't be that bad. After all, they are mainly 747-400s - it's not like they're all that old. It's just that they've been planning on replacing them for a LONG time now, and unfortunately they waited until the last minute, then got delays.

i.e. They have, I think 16 747s, with some 747-8s on order, and 6 A380s currently being delivered in the next 3-4 years.

The latest order would basically mean the replacement of ALL their current 747s. But there's only two choices for their replacement - the A380, which is already 2 years late, or 747-8s, none of which have been delivered yet (and given they're based on 787 technology and the 787s have announced delays, you'd have to assume there may be further delays on the 747-8s as well).

If airbus had delivered on time, then more A380s would almost certainly have been ordered. But with the 747-8 being more fuel-efficient per passenger (in theory - none have actually flown), and the low dollar and high euro, it could easily go Boeing's way.