Thai Airways To Consider Lease Of Airbus Planes

[george]

THAI to consider lease of Airbus planes

BANGKOK: -- Thai Airways International's board today will consider the short-term dry lease of three to six Airbus A300-350 aircraft to serve European routes, a move which could raise the airline's earnings by Bt1 billion per annum in the next three years.

Chokchai Panyayong, executive vice president for strategy and business development, yesterday said the THAI board had approved the leasing in principle in February and now the airline now urgently needed the new aircraft, given that some of its existing fleet cannot be operated.

"We service the [European] routes with a Boeing B747, which needs constant maintenance, while three A330-300 cannot currently be used due to substandard seating. Our schedules are disrupted. If the board approves the urgent lease, the contract could be signed this month for delivery in May," he said.

These newly acquired aircraft will be serve the following intercontinental routes: Copenhagen, Stockholm, Los Angeles, and Oslo. On regional routes, aircraft will be utilized to: Perth, Dubai, Shanghai, Taipei, Mumbai (Bombay), Kolkata (Calcutta), and Bengaluru (Bangalore).

The aircraft would be leased from carriers such as Singapore Airlines at a cost of US$1.2 million (Bt39 million) per month each.

THAI expects the new aircraft to increase earnings. It earlier forecast a net profit of Bt4.3 billion for this year, Bt6 billion in 2001 and Bt8 billion in 2002.

Chokchai stressed that all airlines were focused on new products and better services. Aviation liberalisation in Asean and other areas in 2015 will also intensify regional competition, and THAI needs appropriate strategies on product development as well as fleet competitiveness.

THAI's route network strategy aims to continue developing Bangkok as the main hub by enhancing its schedule for more connectivity. The company will also increase production on profitable routes that are part of its regional and European network. Cooperation on alliance and strategic partnerships will be leveraged in order to expand the company's network. Secondary domestic and regional routes will be expanded through Nok Air, its low-fare budget carrier, following THAI's two-brand strategy.

The company's fleet strategy aims to improve fleet efficiency and reduce carbon emissions by controlling the proper number of aircraft in the fleet and production that matches market demand, while working on fleet simplification in the long-term.

THAI's fleet development plan for the next 10-15 years will cover the period of 2010-2024, in 3 phases:

During 2010-2014, the Company plans to phase-out 25 aging aircraft, take delivery of 9 Government-approved aircraft, and acquire 15 aircraft.

During 2015-2019, the Company plans to phase-out 32 aging aircraft and acquire new aircraft to replace those that have been phased-out, for future network growth at no less than 38 aircraft.

During 2020-2024, the Company plans to phase-out 20 aging aircraft and acquire new aircraft to replace those that have been phased-out, for future network growth at no less than 28 aircraft.

Meanwhile, the International Air Transport Association expects its members to show combined losses of only US$2.8 billion this year, from an earlier projection of $5.6 billion.

Improvements are driven by economic recovery in the emerging markets of Asia-Pacific and Latin America, whose carriers posted international-passenger demand gains of 6.5 per cent and 11 per cent respectively in January.

-- The Nation 2010-03-12

[newsfooter][/newsfooter]

[ralfbkk]

short-term dry lease of three to six Airbus A300-350 aircraft to serve European routes

Must be a wrong information about the type of Aircraft.

Airbus 300's are all phased out and hardly available in the market as PAX Equipment, since most of them were converted to Freighters. Second, even if available the A 300 wont be able to get to Europe, nor the US, nonstop. A Transpacific Crossing is certainly out of the question, unles there are planed stops in Seoul, Anchorage and then Vancouver, to reach Los Angeles.

Anyway, the 330-300 might be a solution but it is, besides Air Berlin, not really used on any EUR Sector right now. The A 330 was build to be a Regional Longhauler, i.e. Bangkok to Perth, or Bangkok to Seoul / Tokyo. I would very much assume that TG wants to lease A 340-600 or even 500' as these are

widely available in the market and actually do have full Lease Costs at around 1.200.000 US$ per month. Singapore Airlines has a few available.

[think_too_mut]

short-term dry lease of three to six Airbus A300-350 aircraft to serve European routes

Must be a wrong information about the type of Aircraft.

Airbus 300's are all phased out and hardly available in the market as PAX Equipment, since most of them were converted to Freighters. Second, even if available the A 300 wont be able to get to Europe, nor the US, nonstop. A Transpacific Crossing is certainly out of the question, unles there are planed stops in Seoul, Anchorage and then Vancouver, to reach Los Angeles.

Anyway, the 330-300 might be a solution but it is, besides Air Berlin, not really used on any EUR Sector right now. The A 330 was build to be a Regional Longhauler, i.e. Bangkok to Perth, or Bangkok to Seoul / Tokyo. I would very much assume that TG wants to lease A 340-600 or even 500' as these are

widely available in the market and actually do have full Lease Costs at around 1.200.000 US$ per month. Singapore Airlines has a few available.

Wrong aircraft type.

In my FF brochure I think I read that TG were getting 8 new A-330s, should have been operational by now or most of them. Leased or purchased, it did not say.

[jfchandler]

"We service the [European] routes with a Boeing B747, which needs constant maintenance, while three A330-300 cannot currently be used due to substandard seating."

The first part I can translate myself, the B747 in question is an aging dump...

The second part, I could use some help translating.... what exactly does it mean when the ThaiAir guy says...three A330-300 cannot currently be used due to substandard seating????

As in... the seats are falling out the bottom of the airplane???

[think_too_mut]

"We service the [European] routes with a Boeing B747, which needs constant maintenance, while three A330-300 cannot currently be used due to substandard seating."

The first part I can translate myself, the B747 in question is an aging dump...

The second part, I could use some help translating.... what exactly does it mean when the ThaiAir guy says...three A330-300 cannot currently be used due to substandard seating????

As in... the seats are falling out the bottom of the airplane???

I can't believe he does know that, there are several B777 (could be, only 3 remaining unchanged ) with "substandard" seating - bought with no seats, a local contractor fitted them 17 years ago with rubbish "Recaro" plastic aftermarket seats - most have been converted to normal.

[jfchandler]

And so the planes in question (A330s or B777s???) have been sitting around for years unused because of bogus seat installations???

Or somebody's been flying around sitting on the cheap plastic seats.... Or maybe not so cheap....

[Krungbin]

True enough, it cannot be A300-350's because the type does not exist. And A300 are not produced anymore and A350 is still on the drawing board...

Three A330-300 cannot currently be used...indeed true. But not because "substandard seating". Because they are still "sitting" in Toulouse.

And they are still sitting in Toulouse because it was discovered last October that Koito - the Japanese seats manufacturer selected by TG - had falsified records relating to structural testing... This prompting the EASA (European Aviation Safety Agency) to suspended Koito’s Production Organization Approval (POA) to supply seats for use in airplanes built by Airbus. FAA and Boeing followed...

Problem is that, today, the delivery delay for new aircraft seats is well over a year, regardless of the manufacturer...

Hence TG being short in capacity, hence TG looking for leasing aircraft. Too bad, A330-300 are very very rare on the leasing market today, and very expensive too...

TG is not the only company facing that problem: Singapore Airlines said the Koito affair has delayed delivery of its 11th Airbus A380, as well as installation of new seats in some existing Boeing 777-300s. Japan’s ANA and Continental Airlines were forced to postpone delivery of new Boeings as well...

This is going to be very very expensive for Koito...

[Ricardo]

Interesting !

Perhaps they could retire/ground a couple of the most maintenance-intensive B747s, and switch their seats across to the new A330s, or is that too obvious ? And surely a major airline like TG has some spare-seats, under-maintenance or whatever ?

[Mosha]

Wiki says that in April, Thai will recieve 3 Boeing 777-300Ers from Jet Airways of India.

[Xangsamhua]

True enough, it cannot be A300-350's because the type does not exist. And A300 are not produced anymore and A350 is still on the drawing board...

Three A330-300 cannot currently be used...indeed true. But not because "substandard seating". Because they are still "sitting" in Toulouse.

And they are still sitting in Toulouse because it was discovered last October that Koito - the Japanese seats manufacturer selected by TG - had falsified records relating to structural testing... This prompting the EASA (European Aviation Safety Agency) to suspended Koito's Production Organization Approval (POA) to supply seats for use in airplanes built by Airbus. FAA and Boeing followed...

Problem is that, today, the delivery delay for new aircraft seats is well over a year, regardless of the manufacturer...

Hence TG being short in capacity, hence TG looking for leasing aircraft. Too bad, A330-300 are very very rare on the leasing market today, and very expensive too...

TG is not the only company facing that problem: Singapore Airlines said the Koito affair has delayed delivery of its 11th Airbus A380, as well as installation of new seats in some existing Boeing 777-300s. Japan's ANA and Continental Airlines were forced to postpone delivery of new Boeings as well...

This is going to be very very expensive for Koito...

There's a report in today's news that the Pheua Thai Party have asked if Thai Airways are going to cancel their order with Koito, as there have been delays and the seats are sub-standard.

I hope something is done, as I am a regular passenger on Thai.

Koito seem pretty dodgy. http://www.airlinere...ry-wide-issues/