Thailand May Shun Airbus

[george]

BANGKOK, DEC 17: Thai Prime Minister Thaksin Shinawatra said on Wednesday his government may review future plans to buy Airbus planes if the European Union continued to treat Thailand’s agricultural exports “unfairly”.

Mr Thaksin told reporters Thailand’s trade with the European Union was at a disadvantage compared to other countries at a comparable level of development, such as Malaysia.

“Malaysia has trade privileges, but Thailand does not. They can’t say that we are in a better position. It’s not fair,” he said. “If they treat us unfairly, we will treat them the same way.”

“We are expanding terminals for new aircraft and we plan to buy Airbus planes from the EU. But if the EU is not fair with us, we will also be uncomfortable in buying their planes.” Thailand might turn to Boeing Co instead, he said.

Airbus SAS is owned 80 per cent by European Aeronautic, Defence & Space Co NV (EADS), based in Germany and France, and 20 per cent by Britain’s BAE Systems Plc.

Airbus said in August that Thai Airways International PCL had ordered eight planes after winning approval to spend $1.4 billion over the next five years to boost its fleet. Mr Thaksin said that order was not in doubt.

But Thailand is beginning negotiations with the European plane giant on further planes for both National carrier Thai Airways and the Royal Thai Air Force, domestic media say.

Civil-oriented Airbus has a limited range of military products: the A400M Military transport, and tanker and VIP versions of its airliners. The Thai air force has been authorised to buy a second VIP plane.

Mr Thaksin’s comments followed domestic media reports quoting commerce minister Wattana Muangsuk as saying the Thai government should get tough with Airbus.

--Reuters 2003-12-18