Thailand Delays Airbus Deal Over Eu Trade

[george]

Thailand Delays Airbus Deal Over EU Trade

Thailand said on Tuesday it would delay buying Airbus aircraft worth more than USD$2 billion until the European Union eases food import restrictions, though analysts said they still expected a purchase to go ahead.

Prime Minister Thaksin Shinawatra told reporters he had instructed Thai Airways International to delay ordering the eight Airbus planes it plans to buy until restrictions are lifted on its shrimp, poultry and farm products.

"I have made it clear that no order contracts are to be signed and only letters of intent can be initialled for the planes," Thaksin said.

"We need to get clarification from the EU that it will not mistreat us, agree to be fair to us, and will buy more of our farm products. We are also concerned about our current account."

Analysts said they did not expect Thaksin's threat to lead to the airline scrapping its plan to buy Airbus planes, saying Thailand had issued similar warnings in the past.

"I don't think it's an issue that Thailand would seriously pursue to the end," said airlines analyst Sarit Panjamanond of KGI Securities. "If Thai Airways needs to buy the aircraft, it will eventually do so regardless of whether poultry and shrimp problems are resolved or not," he said.

However, Thaksin's comments may prompt the Thai carrier to bargain harder for a better deal from Airbus or it could buy more planes from Boeing and fewer from Airbus, he said.

Thaksin spoke after a cabinet meeting which approved the airline's plan to buy 14 new aircraft worth more than USD$2 billion over 5 years, including the eight Airbus planes, a government official said.

In August, Airbus valued the list price of its portion of the order at more than USD$2 billion and said it included five double-decker A380s, the world's biggest airliner, one A340-500 and one A340-600.

Thai Airways said the other six planes would be Boeing 777-200 ERs.

In September, the EU extended its ban on Thai poultry and pet bird imports until the end of March due to fears about the bird flu epidemic, which has hit Thailand hard.

But Thaksin said Thailand had effectively contained the avian flu epidemic and prevented fresh human infections in recent months.

The highly contagious bird flu has rampaged across much of Asia since early this year. It devastated poultry industries in several countries, including Thailand, previously the world's fourth largest chicken exporter.

Thailand, also the world's biggest frozen shrimp exporter, has protested against strict EU food safety inspections of Thai shrimps since 2003.

-- Reuters 2004-11-23

[nogutsnoapplepie]

Thailand Delays Airbus Deal Over EU Trade

Thailand said on Tuesday it would delay buying Airbus aircraft worth more than USD$2 billion until the European Union eases food import restrictions, though analysts said they still expected a purchase to go ahead.

Prime Minister Thaksin Shinawatra told reporters he had instructed Thai Airways International to delay ordering the eight Airbus planes it plans to buy until restrictions are lifted on its shrimp, poultry and farm products.

"I have made it clear that no order contracts are to be signed and only letters of intent can be initialled for the planes," Thaksin said.

"We need to get clarification from the EU that it will not mistreat us, agree to be fair to us, and will buy more of our farm products. We are also concerned about our current account."

Analysts said they did not expect Thaksin's threat to lead to the airline scrapping its plan to buy Airbus planes, saying Thailand had issued similar warnings in the past.

"I don't think it's an issue that Thailand would seriously pursue to the end," said airlines analyst Sarit Panjamanond of KGI Securities. "If Thai Airways needs to buy the aircraft, it will eventually do so regardless of whether poultry and shrimp problems are resolved or not," he said.

However, Thaksin's comments may prompt the Thai carrier to bargain harder for a better deal from Airbus or it could buy more planes from Boeing and fewer from Airbus, he said.

Thaksin spoke after a cabinet meeting which approved the airline's plan to buy 14 new aircraft worth more than USD$2 billion over 5 years, including the eight Airbus planes, a government official said.

In August, Airbus valued the list price of its portion of the order at more than USD$2 billion and said it included five double-decker A380s, the world's biggest airliner, one A340-500 and one A340-600.

Thai Airways said the other six planes would be Boeing 777-200 ERs.

In September, the EU extended its ban on Thai poultry and pet bird imports until the end of March due to fears about the bird flu epidemic, which has hit Thailand hard.

But Thaksin said Thailand had effectively contained the avian flu epidemic and prevented fresh human infections in recent months.

The highly contagious bird flu has rampaged across much of Asia since early this year. It devastated poultry industries in several countries, including Thailand, previously the world's fourth largest chicken exporter.

Thailand, also the world's biggest frozen shrimp exporter, has protested against strict EU food safety inspections of Thai shrimps since 2003.

-- Reuters 2004-11-23

<{POST_SNAPBACK}>

The plane's arrival was never announced and plans to use it have twice been cancelled prompted speculation that the government was afraid news about the expensive Airbus would make the premier even more unpopular.

Did he not buy his private jet from Airbus???

Who the ###### does he think he is..."Buy our Chicken or else!!!"

[britainmal]

We Europeans don't want any dirty chicken or shimp from Thailand until there products meet European standards. If Thaksin doesn't want our planes then **** him because we don't need his money we have many other buyers. He should open up the Thai Economy up to foreigners like Europe does before he cries that Europe is being unfair.