Germany Seizes Thai Crown Prince's Aircraft In Debt Dispute

[News_Editor]

Germany seizes Thai Crown Prince's aircraft in debt dispute

2011-07-14 06:59:03 GMT+7 (ICT)

Grounded by the Germans.

File photo

MUNICH, GERMANY (BNO NEWS) -- Germany seized Thailand's crown prince's airplane, arguing that the Asian country has an unpaid debt to a German construction company, Germany's The Local reported Wednesday.

Werner Schneider, the insolvency administrator for the Walter Bau construction group is demanding over 30 million Euro ($42.4 million) from the Thai government because a payment was allegedly never received when German construction firm Dywidag helped build a 26-kilometer (16.2-mile) road between Bangkok, Thailand and the city's airport over 20 years ago.

Dywidag later merged with Walter Bau in 2001, and in 2005, Walter Bau went under and was soon partially acquired by an Austrian company.

The government of Germany has tried to recover the funds from the Thai government on a number of occasions, but they have been unsuccessful. Schneider told the media outlet that impounding the aircraft was a drastic measure but "virtually the last resort."

The seized plane is a Boeing 737 - which are listed between $56.9 million to $85.8 million, depending on the model. The aircraft is usually used by Thailand's Crown Prince Maha Vajiralongkorn, who also flies the aircraft himself on occasions.

-- © BNO News All rights reserved 2011-07-14

[george]

Thai crown prince's Boeing impounded in Germany

BERLIN, July 13, 2011 (AFP) - An aircraft used by the Thai crown prince has been impounded in Germany due to a dispute over money between Bangkok and an insolvent construction firm, Munich airport said Wednesday.

The Boeing 737 often flown by Maha Vajiralongkorn himself, the heir to the Thai throne, "has been sealed, the doors are not allowed to be opened and it is banned from taking off", airport spokesman Robert Wilhelm told AFP.

Werner Schneider, insolvency administrator for the Walter Bau firm, said that the seizure late on Tuesday followed repeated refusals by the Thai government to pay money it says it is owed.

"We have been trying for years ... to have our justified demands for more than 30 million euros ($42 million) met, and this drastic measure is basically the last resort," Schneider's firm said in a statement.

"The Thai government keeps playing for time and has not reacted to Schneider's demands. Even the involvement of the relevant departments of the German government proved fruitless."

The dispute goes back more than 20 years to the involvement of DYWIDAG, which merged with Walter Bau in 2001, in building a motorway link between Bangkok and Don Muang airport.

After "numerous breaches of contract by the Thai government", Walter Bau, by then insolvent, in 2007 claimed for damages, the legality of which were confirmed by a court in 2009, Schneider said.

"The prince has been regularly coming to Munich for years ... He is probably in Munich right now, in some hotel or other," the spokesman for the airport in southern Germany said.

The Thai embassy in Berlin was not immediately available for comment.

-- (c) Copyright AFP 2011-07-14

[george]

Thailand slams Germany for holding prince's plane

BANGKOK, July 14, 2011 (AFP) - Thailand's foreign minister embarked on an urgent mission to Germany on Thursday, accusing authorities there of making a "huge mistake" in impounding an aircraft owned by the Thai crown prince.

A Boeing 737 often flown by Maha Vajiralongkorn himself, the heir to the Thai throne, was sealed and banned from taking off late on Tuesday, Munich airport said, as part of a long-running business dispute.

On Wednesday Werner Schneider, insolvency administrator for the Walter Bau construction firm, said the seizure followed repeated refusals by the Thai government to pay money it owes the company.

"Legally, this is a huge mistake," Foreign Minister Kasit Piromya told reporters in Bangkok, before departing for Europe.

"The thing that we want urgently is for the German court to act on our request revoke the seizure immediately."

Kasit said the plane belonged to the crown prince, not the government, and that the issue had "nothing to do" with the royal.

"If this takes too long it might affect the feelings of Thai people towards German people and the country because this is related to the monarchy," he warned.

The commercial spat goes back more than 20 years to the involvement of the company DYWIDAG, which merged with Walter Bau in 2001, in building a motorway link between Bangkok and Don Muang airport.

After "numerous breaches of contract by the Thai government", Walter Bau, by then insolvent, in 2007 claimed for damages, the legality of which were confirmed by a court in 2009, Schneider said.

"We have been trying for years... to have our justified demands for more than 30 million euros ($42 million) met, and this drastic measure is basically the last resort," Schneider's firm said in a statement.

Kasit said the government had written to and spoken with German foreign ministry officials and appointed a lawyer to defend the case.

"All of the Thai people are worried about what happened," he said, although none of the mainstream Thai media reported the incident on Thursday.

Discussion of the monarchy is extremely sensitive in Thailand, where lese majeste legislation bans perceived criticism of the royal family and the institution.

Munich airport spokesman Robert Wilhelm told AFP on Wednesday that the crown prince had been regularly coming to Munich for years.

"He is probably in Munich right now, in some hotel or other," he said.

-- (c) Copyright AFP 2011-07-14

[george]

External links:

Germany impounds Thai Prince Vajiralongkorn's jet

BBC: http://www.bbc.co.uk/news/world-asia-pacific-14138273

EDITOR NOTE:

This topic is closed as discussion of the monarchy is extremely sensitive in Thailand, where lese majeste legislation bans perceived criticism of the royal family and the institution.

[webfact]

GERMANY

Thailand's making 'all efforts' to end aircraft spat : FM

By Nuntida Puangthong

The Nation

Thailand will make all efforts to release a Thai national's Boeing 737 impounded in Germany due to a payment conflict between the government and a German construction firm, outgoing Foreign Minister Kasit Piromya said yesterday.

"Germany made the great mistake of confiscating property that does not belong to the Thai government," Kasit told reporters yesterday.

After learning that the aircraft had been impounded, Thai Ambassador to Germany Charivat Santaputra quickly contacted the German Foreign Ministry to explain its legal status, he said.

Kasit himself flew to Germany last night to negotiate with the authorities in Munich and Berlin to release the aircraft.

The Thai authorities have explained the situation and submitted all relevant documents to Germany to prove the legal status of the aircraft, he said.

"I made it clear that this matter has nothing to do with the royal court," he said. "It is a huge mistake for Germany to do this and we will not allow this issue to jeopardise relations between the two countries."

The Boeing 737 "has been sealed, the doors are not allowed to be opened and it is banned from taking off", airport spokesman Robert Wilhelm told Agence France-Presse.

Werner Schneider, insolvency administrator for the firm at the centre of the affair, Walter Bau, said the seizure late on Tuesday followed repeated refusals by the Thai government to pay back alleged debts.

"We have been trying for years... to have our justified demands for more than ¤30 million [bt1.3 billion] met, and this drastic measure is basically the last resort," Schneider's company said in a statement.

The dispute goes back more than 20 years to the involvement of Dywidag, which merged

with Walter Bau in 2001, in building the Don Muang Tollway, a motorway link between Bangkok and Don Muang Airport.

"The Thai government keeps playing for time and has not reacted to Schneider's demands. Even the involvement of the relevant departments of the German government proved fruitless," said Schneider.

Kasit said he had placed Schneider on the "persona non grata" list banning him from entering Thailand.

-- The Nation 2011-07-15

[webfact]

Kasit seeks a meeting with German deputy FM over impounded plane

By The Nation,

Foreign Minister Kasit Piromya yesterday sought to meet with Germany's Deputy Foreign Minister Cornelia Pieper in a bid to retrieve a Thai national's personal plane that was impounded by German authorities earlier this week over a long-running commercial dispute.

The Foreign Ministry in Berlin said that Kasit had requested a meeting with Pieper later yesterday. German Foreign Minister Guido Westerwelle is currently in Mexico.

Meanwhile, Germany's Foreign Ministry has said that it would not comment on the ownership of the plane. However, the ministry's spokesman, Martin Schaefer, said the German Embassy in Bangkok had previously contacted Thai authorities over the dispute and that Germany's government respected the independent judiciary's decision to impound the plane. He added that Pieper "will have polite, friendly and dedicated talks" with Kasit.

A Boeing 737 was impounded at Munich airport on Tuesday over a payment conflict between the Thai government and a German construction firm. A court order "against the Kingdom of Thailand represented by the Prime Minister Abhisit Vejjajiva" was affixed to the plane's door.

The bankruptcy administrator of German construction firm Walter Bau AG said earlier this week that the plane was seized on court order because the Thai government had refused to pay the ค30 million (Bt1.3 billion) that it owes the company for building and operating the Don Muang Tollway. The contract was signed more than 20 years ago.

The company maintains that the plane belongs to the Thai government, but Thailand insists that it belongs to a Thai national and, therefore, cannot be impounded in a commercial dispute.

Alexander Goerbing, a spokesman for Walter Bau AG, maintained yesterday that the plane was a legitimate target because registration documents showed that it was a property of the Thai government.

"We received this impounding order based on aviation registry that says the plane belongs to the Thai government. The court viewed these documents as being valid," he said.

Prime Minister Abhisit Vejjajiva said yesterday that he expected the row to be concluded soon, adding that the government was doing all it can to resolve the problem urgently.

"The German government has provided legal assistance to the Thai side. This is a case filed by a private business and the administration has no power to intervene," Abhisit said.

The prime minister said a separate legal battle between the German company and the government was underway in New York, and that the Thai side was going to file an appeal with a court in the United States on July 29. Therefore, he said, there should have been no urgent need for German authorities to impound the plane.

"Thailand is ready to follow the final court verdict even if it means we will have to pay the money. The government will not escape from the responsibility. Besides, we have lots of assets," he said.

-- The Nation 2011-07-16

[webfact]

Thai prince plane affair in hands of German justice: Berlin

BERLIN, July 16, 2011 (AFP) - Thailand's foreign minister flew into Berlin Friday for talks on the impounding of an aircraft owned by the Thai crown, but the German government insisted that it was a matter for the courts.

Foreign Minister Kasit Piromya met with German foreign undersecretary Cornelia Pieper to discuss the matter, foreign ministry spokesman Martin Schaefer told reporters.

German Foreign Minister Guido Westerwelle is currently visiting Mexico.

Before the Thai minister's arrival however, he said the government could not comment on the affair "because we respect the independence of the judicial authorities" handling the case.

On Tuesday, German officials sealed a Boeing 737 often flown by the heir to the Thai throne Maha Vajiralongkorn, and banned it from taking off, Munich airport said. The move came because of a long-running business dispute.

"Legally, this is a huge mistake," Kasit told reporters in Bangkok before leaving for Europe. In Thailand the royal family is a revered institution.

In talks in Berlin, Pieper regretted "the inconvenience caused to the crown prince by this seizure."

But she reiterated Westerwelle's position that the matter was in the hands of the German courts.

In a statement the two ministers agreed that the matter should not harm bilateral relations.

Werner Schneider, insolvency administrator for the Walter Bau firm, said the seizure followed repeated refusals by the Thai government to pay money it says it is owed.

"We have been trying for years ... to have our justified demands for more than 30 million euros ($42 million) met, and this drastic measure is basically the last resort," Schneider's firm said in a statement.

"The Thai government keeps playing for time and has not reacted to Schneider's demands. Even the involvement of the relevant departments of the German government proved fruitless."

The dispute goes back more than 20 years to the involvement of DYWIDAG, which merged with Walter Bau in 2001, in building a motorway link between Bangkok and Don Muang airport.

After "numerous breaches of contract by the Thai government", Walter Bau, by then insolvent, in 2007 claimed for damages. A court ruled in his favour in 2009, Schneider said.

Kasit, speaking in Bangkok said Thailand wanted "the German court to act on our request revoke the seizure immediately."

He added that the plane belonged to the crown prince, not the government.

"If this takes too long it might affect the feelings of Thai people towards German people and the country because this is related to the monarchy," he warned.

-- (c) Copyright AFP 2011-07-16

[Lite Beer]

German court decision on seized Thai plane expected Monday: Thai PM

BANGKOK, July 16 - Thai Prime Minister Abhisit Vejjajiva on Saturday said the German court is expected to render a decision on whether to release an impounded Thai plane on Monday, following a long-running commercial dispute over the payment owed to a German construction company by the Thai government.

The Thai premier said the delayed court decision came as the German construction firm Walter Bau AG has filed objection documents against the Thai government appeal seeking the release of the seized aircraft.

"I have instructed the director-general of the Department of Aviation to verify the objection documents of the German company as I understand that they might have used non-updated versions from websites saying the plane is under the supervision of the Royal Thai Air Force," stated Mr Abhisit.

Mr Abhisit added that the German government has expressed regret on the case and has facilitated the work of Thai officials, but said this is a matter between a German private company and the courts, in which the government cannot interfere.

"Foreign minister Kasit is now in Germany to coordinate the issue. Thailand will do its best to protect the prestige and reputation of the country," asserted the premier. "The action is inappropriate as the case is still in court. Thailand is willing to follow the court's final ruling no matter what the outcome, so there is no need [to seize the plane].”

The Southern District Court of New York last year ruled in favour of Walter Bau and ordered Thailand to pay compensation to the firm, but Thailand's Office of the Attorney-General has appealed the case.

The Royal Thai Air Force on Saturday reaffirmed that the aircraft is considered the personal property of Crown Prince Maha Vajiralongkorn as it was officially presented to His Royal Highness by the Air Force in 2008.

Air force spokesman Air Vice Marshal Monthon Satchukorn added that an official document confirming the presentation of the Boeing 737 has already been sent to the foreign ministry as evidence to fight in the German court.

Thai Foreign Minister Kasit Piromya, now in Berlin, earlier urged Germany to retrieve the Thai-flag plane which has been impounded on court order.

Mr Kasit held talks with German deputy foreign minister Cornelia Pieper, as German Foreign Minister Guido Westerwelle is now in Mexico.

Pieper reportedly express regret over "the inconvenience caused to the Crown Prince by this seizure," but said the matter was now in the hands of the German courts.

Both Mr Kasit and Ms Pieper however issued a statement agreeing that the matter should not harm bilateral relations.

The Associated Press (AP) earlier quoted a bankruptcy administrator of German construction firm Walter Bau AG as saying the plane was seized at Munich airport on court order because of the Thai government's refusal to pay US$42 million it is owed under a contract agreed to more than 20 years ago to build and operate a toll highway in Thailand.

Werner Schneider, Insolvency Administrator for the Walter Bau construction group, told AP that "I assume that this plane does not belong to the Crown Prince but to the federal state of Thailand, because it is a plane of the [Thai] Royal Air Force. And the right I have to do this is directed against the state." (MCOT online news)

-- TNA 2011-07-16

[Lite Beer]

German court rejects plea

By The Nation on Sunday

Judge not convinced about government's plane ownership argument; RTAF submits documents to argue the case

A German court yesterday declined a Thai government request for an injunction to release a Thai-owned plane impounded at Germany's Munich airport early last week.

Judge Christoph Fellner said the court was not fully convinced the plane was HRH Crown Prince Maha Vajiralongkorn's personal property as asserted by the lawyer for Thailand. The court is to sit again on the case this week.

The Royal Thai Air Force yesterday confirmed the Thai government's contention that the RTAF in 2007 presented the Boeing 737 jet to the Prince for his personal use, RTAF spokesman Air Vice Marshal Monthon Satchukorn said.

"The RTAF asserts that the plane in question does not belong to the government because it was presented for royal use. There is an official document to prove the presentation. The Ministry of Foreign Affairs asked for that document to be presented to the German authorities and the RTAF has supplied that document," the spokesman said.

The plane has been grounded by a writ in a long-running business dispute between the German building company Walter Bau AG and the Thai government.

Caretaker Prime Minister Abhisit Vejjajiva yesterday said he had instructed relevant authorities to find out whether the documents submitted by Walter Bau AG in opposing the Thai petition was up-to-date.

"I instructed the Aviation Department director-general to verify the objection documents of the German company as I understand that they may use non-updated versions from websites saying the plane is under the supervision of the Royal Thai Air Force," Abhisit said. He also said that the German government expressed regrets about the case and facilitated the work of Thai officials.

"Foreign Minister Kasit Piromya is now in Germany to coordinate the issue. Thailand will do its best to protect the prestige and reputation of the country," the acting prime minister said.

Kasit met German foreign under-secretary Cornelia Pieper in Berlin to discuss the matter, Germany's foreign ministry spokesman Martin Schaefer told reporters yesterday.

Pieper expressed regret over "the inconvenience caused to the crown prince by this seizure" but she reiterated German Foreign Minister Guido Westerwelle's position that the matter was in the hands of the German courts. Before the Thai minister's arrival, however, the spokesman said the government could not comment on the affair "because we respect the independence of the judicial authorities" handling the case.

Kasit, speaking in Bangkok, said Thailand wanted "the German court to act on our request to revoke the seizure immediately".

He added that the plane belonged to the Crown Prince, not the government. "If this takes too long, it might affect the feelings of Thai people towards German people and the country because this is related to the monarchy," he warned.

Werner Schneider, the insolvency administrator of Walter Bau, yesterday called the court decision not to issue an injunction a victory.

Schneider said his objective was to force the Thai government to pay out a settlement, as ordered by arbitrators.

He had urged Bangkok to offer a cash bond in place of the jet, but this was refused. "This attitude surprised us, because we were willing to cut a deal," he said.

In the 1990s, Walter Bau was part of a joint venture to construct the Don Muang Tollway. A row erupted over the tolls to be levied, as a result of which the German construction company said contractual obligations were not being met. After years of negotiations, an international tribunal in Geneva awarded Walter Bau US$42 million (Bt1.26 billion) in compensation, an award the Thai government rejected.

-- The Nation 2011-07-17

[Lite Beer]

The Thai officials told the court the plane was privately owned and not a government asset, which the Royal Thai Air Force confirmed.

Air Force spokesman ACM Monthol Satchukorn said the Air Force presented the jet to the Crown Prince in 2007.

"There is a letter of presentation that the Foreign Ministry has already presented to the German authorities," he said./Via@ThanongK

[Lite Beer]

Appeal not successful. Bavarian State Court not convinced by "new evidence", orders to uphold the plane seizure at least until next week: /Via@msnowwhite:

[webfact]

Thailand to table more documents on royal jet

By The Nation

Thailand will table more documents in a German court to prove ownership of the impounded Boeing 737, to show it does not belong to the government, the Foreign Ministry said yesterday.

The Office of General Attorney wil submit additional documents today following the court's request for more evidence to prove ownership of the aircraft, the ministry's deputy spokesman Jesda Katavetin said.

Judge Christoph Fellner said earlier the court was not fully convinced the plane was HRH Crown Prince Maha Vajiralongkorn's personal property, as asserted by the lawyer for Thailand.

The Royal Thai Air Force said earlier it presented the jet aircraft to HRH the Crown Prince in 2007 for his personal use.

Jesda said the court would spend one or two days to consider the new set of documents and evidence submitted by the Thai authorities before ruling on an injunction on the plane.

The Boeing, frequently piloted by HRH the Crown Prince, was impounded at Munich Airport last week due to an investment conflict between the Thai government and German construction firm Walter Bau.

The company was part of a joint venture to construct the Don Muang Tollway. A row followed over the traffic toll to be levied, after which the German construction company said contractual obligations were not being met.

After years of talks, an international tribunal in Geneva awarded Walter Bau $42 million (Bt1.26 billion) in compensation, an ruling the Thai government rejected.

The aircraft was seized on a court order following the request made by the company.

-- The Nation 2011-07-18

[webfact]

Foreign Ministry to Resolve Boeing 737 Seizure Case

The Thai Foreign Minister is rushing to resolve the case in which a royal plane was impounded on a German court order.

He believes that the court will return the Boeing plane today.

Outgoing Foreign Minister Kasit Piromya has filed a petition with the German Court confirming that the Boeing 737 belongs to His Royal Highness Crown Prince Maha Vajiralongkorn and that he has no involvement in the conflict between the Thai government and Walter Bau, a German construction company.

The German court will consider the case today after the Boeing 737 was seized by a court order, and has been grounded at Munich Airport.

The impound is a part of a long-running battle between the Thai government and Walter Bau after the Thai government refused to pay the German firm 1.26 billion baht, the sum for breaching a bilateral investment treaty between the two countries.

The Thai delegation includes Treaties and Legal Affairs Department Director-General under Foreign Ministry and Civil Aviation Department Director General under Transport and Communications Ministry.

The German Court is expected to make a decision later today.

Kasit believes that the court will release the plane after they prove that it is royally owned.

Meanwhile, Thaksin Shinnawatra's lawyer, Robert Amsterdam vehemently denied, via twitter, any involvement with the seizure case after there have been rumors that he was behind the action.

-- Tan Network 2011-07-18

[webfact]

OPINION

Plane stupid: the damage is done

By Alexander Mohr

Special to The Nation

Last Thursday, the Boeing 737 used by HRH Crown Prince Maha Vajiralongkorn was seized at Munich Airport in Germany.

The insolvency administrator for the German company Walter Bau, Werner Schneider, ordered the seizure of the aircraft. However this issue is eventually resolved, the damage to bilateral relations has been done.

The background to this story concerns a contract between the German construction company Dywidag and the Thai government in the 1990s to construct the Don Muang Tollway. The insolvency administrator for the Walter Bau construction group is demanding over ¤30 million from the Thai government because of a payment that was apparently never received in return for Dywidag's work on the 26 kilometre road. Dywidag merged with Walter Bau in 2001. In 2005, Walter Bau went insolvent and was partially acquired by an Austrian company.

After the construction of the highway, a legal row erupted, with the German construction company saying contractual obligations had not been met. After years of negotiations, an international court in Geneva awarded Walter Bau US$42 million (Bt1.26 billion) in compensation, a decision the Thai government rejected.

This contractual dispute has now become political and caused bilateral irritations. It goes without saying that legally binding contracts have to be fulfilled by all parties concerned. This is the fundamental principle of such contracts. However, legal disputes over highly complicated construction contracts such as building highways or other public mega-projects are far from uncommon. Big contracts of this sort between governments and contractors are often disputed, or have to be renegotiated, even after they have been signed and the project completed.

However, the seizure of a royal aircraft goes far beyond being a reasonable approach to settle such a dispute.

There are several question marks over how this issue has been dealt with on the company's side: first of all, the seizure of a plane from a royal fleet is simply not the most straightforward approach. One cannot help thinking that the insolvency manager went for the most sensational approach. Seizing a plane from the Thai royal fleet guarantees media attention and exposure. It is questionable whether causing bilateral irritation to such an extent is helping to solve the legal issue, which concerns, after all, a private contract between a company and a government.

Further, it is surprising that the insolvency manager went for an aircraft under royal service. The initial contract between Walter Bau was with the Thai government. Thailand is a constitutional monarchy in which the government, elected by the Thai people, governs the country. HM the King is the head of state and represents the country. The construction contract was therefore between Thailand and Walter Bau, and not with the Royal Family.

The approach of the insolvency administrator would only make sense if the plane belonged to the Thai government. But the legal ownership of the plane is far from clear. A simple look at the plane reveals the words "Royal Flight". The plane also carries royal insignias. But while the identity of the aircraft's owner may remain unclear, the action of seizing a vehicle used by a member of the Royal Family exceeds all bounds of a reasonable approach towards a solution. The damage is done.

The Thai side tried to solve the issue on a political level last week. Foreign Minister Kasit flew to Germany where he met with Cornelia Piper, an under secretary of the German foreign ministry. The German side does not want to intervene in the case and refers to the independence of the judiciary.

A German court subsequently declined the Thai government's request for an injunction to release the plane held at Munich Airport. The judge said the court was not fully convinced the plane was HRH Crown Prince Maha Vajiralongkorn's personal property, as asserted by the lawyer for Thailand.

The Royal Thai Air Force (RTAF) confirmed the Thai government's contention that the RTAF in 2007 presented the Boeing 737 jet to the Prince for his personal use. RTAF spokesman Air Vice Marshal Monthon Satchukorn said last week that there is an official document to prove the presentation. The Foreign Ministry asked for that document to be presented to the German authorities and the RTAF has supplied that document," the spokesman said.

Meanwhile caretaker Prime Minister Abhisit Vejjajiva has tried to take the heat out of the situation by instructing the Thai Aviation Department to probe his suspicion that the German company's objections are based on out-of-date information that the plane is under the supervision of the RTAF. The PM also said that the German government expressed its regret about the case and is cooperating with Thai officials.

It is very likely the dispute will be settled soon. However, the avoidable damage caused to bilateral relations between Germany and Thailand is done, with both the economic and also political ties suffering.

Dr Alexander Mohr is partner for International Relations at the government relations firm Alber & Geiger in Brussels and was lecturer on International Relations at the French university Institut d'Études Politiques de Paris in France.

-- The Nation 2011-07-19

[webfact]

Foreign Min Pursues Release of Seized Royal Jet

Foreign Minister Kasit Biromya went straight from the Hague to Munich to seek the release of a royal private jet that was impounded by a German court last Tuesday over a debt dispute between the Thai government and a German company.

At Frankfurt Airport on Sunday, Foreign Minister Kasit Biromya gave a report to His Royal Highness Crown Prince Mahavajiralongkorn on the legal and diplomatic proceedings in relation to the German court's decision to impound a royal aircraft reserved for personal use by the HRH Crown Prince.

The impound of the royal jet came at the request of a German insolvency administrator who is seeking debt repayment of more than 30 million Euros from the Thai government in a dispute related to the construction of a motorway.

The plane is currently grounded at Munich Airport.

Last Friday, Kasit met with German acting Foreign Minister Cornelia Pieper and Deputy Foreign Minister Werner Hoyer in Berlin to highlight the sensitivity of the issue.

He said it was a big mistake on the German side to freeze the private jet.

Germany has agreed to resolve the issue with Thailand as soon as possible as it could affect the amicable relationship between the two countries.

This morning, the Thai government submitted additional documents as requested by the German court.

A date has yet to be slated for a verdict or further hearings.

Kasit immediately left the Hague for Munich to continue seeking the release of the royal aircraft.

Prime Minister Abhisit Vejjajiva has also sent a correspondence to the Chancellor of Germany, Angela Merkel regarding the matter.

-- Tan Network 2011-07-19

[webfact]

Court shown evidence on ownership

By The Nation

A document showing the withdrawal of an impounded Boeing 737 from the Defence Ministry's list of aircraft was among evidence presented to a German court to prove the plane's ownership, an informed source said yesterday.

Other papers submitted included the Standard Certificate of Airworthiness, the aircraft registration and a permit to use private aircraft, all signed by HRH the Crown Prince Maha Vajiralong-korn when the Royal Thai Air Force presented the plane to him in 2007 for his personal use, the source said.

Civil Aviation Department director-general Somchai Chanrod said yesterday that the documents submitted to the court complied with the Convention on International Civil Aviation, or Chicago Convention. He expressed confidence the court would accept the Thai government's sound evidence that the Boeing did not belong to the government.

Meanwhile, the Foreign Ministry's deputy spokesman Jesda Katavetin said the Thai legal team was allowed to offer useful information yesterday and it expected the court would review the additional evidence and rule today.

An investment-conflict lawsuit with German construction firm Walter Bau over the Don Muang Tollway debacle led to the Boeing being impounded by the Germans. The Thai government will appeal by July 29 on the New York Court's ruling for the government to pay Walter Bau, caretaker Prime Minister Abhisit Vejjajiva said yesterday.

Abhisit said the Office of the Attorney-General confirmed with him that there were reasonable grounds for appeal and it might also proceed with other legal action against Walter Bau. Officials would give him details when they returned to Thailand.

Walter Bau, which was part of a joint venture to construct the Don Muang Tollway, has accused the Thai government of breaches of contract. After years of discussion, an international tribunal in Geneva awarded the firm about 30 million (Bt1.26 billion) in compensation, a ruling the Thai government rejected.

The firm sued the Thai government in a New York court for compensation, and a German civil court had the Boeing 737 aircraft impounded at Munich Airport last week.

-- The Nation 2011-07-20

[webfact]

PM Hopes for German Court to Release Royal Jet

The outgoing prime minister believes a German court will revoke the impound of a royal plane that has been seized with a court order due to a payment conflict between the government and a German construction firm.

Outgoing Prime Minister Abhisit Vejjajiva said he believes the German court will release the Boeing 737, which belongs to His Royal Highness Crown Prince Maha Vajiralongkorn.

The aircraft has been impounded by court order.

The impound is a part of a long-running dispute between the Thai government and German contractor Walter Bau after the Thai government refused to pay the German firm 1.26 billion baht, the sum for breaching a bilateral investment treaty between the two countries.

Abhisit declined to comment further on the issue, saying only that the matter is under the court’s consideration.

The court allowed the Thai government to submit additional documents by midnight yesterday, before ruling whether to free the aircraft or not today.

The acting premier noted that the government will submit the appeal before July 29, adding that the Attorney-General assured him that he has evidence suggesting that the petition filed against the Thai government by Walter Bau is illegal.

-- Tan Network 2011-07-20

[webfact]

Transport Ministry to Sue Don Muang Tollway

The Transport Ministry is prepared to charge the Don Muang Tollway for the investment-conflict lawsuit with a German construction firm.

The Transport Ministry Permanent Secretary Supoj Soplom said he has talked with the Department of Highways concerning its action to grant concession to the Don Muang Tollway.

He said the evidence can be used to counter-charge the Don Muang Toll Way for causing the country a loss, after the German court has ordered the Thai government to pay a 29-million-euro compensation from the Thai government for breaching a bilateral investment treaty between Germany and Thailand.

He said the court has found that the Thai government violated the terms of a toll road concession operated by a venture partly owned by Walter Bau.

Supoj said the Department of Highways has expanded the concession with Don Muang Tollway twice, the first expansion for seven additional years, and the second for thirteen more.

He added that Walter Bau sued the Department of Highways in 2005.

He said if further investigation finds that Walter Bau does not hold shares in the venture, they will not be able to sue.

-- Tan Network 2011-07-20

[webfact]

German court releases Thai crown prince's plane

by Ralf Isermann

MUNICH, July 20, 2011 (AFP) - A German court ordered Wednesday the release of the Thai crown prince's impounded jet upon receipt of a hefty bank guarantee, allowing an awkward episode that threatened to upset ties to end.

Maha Vajiralongkorn's Boeing 737 had been seized at Munich airport in southern Germany last Tuesday in a long-running commercial dispute between Thailand and a now-insolvent German construction firm.

But a court in nearby Landshut said it had received an assurance under oath from the Thai Department of Civil Aviation's director that the plane belonged to the prince, not the Thai state, as well as a 2007 registration certificate.

The vice president of the court, Christoph Fellner, said however that since these documents provided only a "presumption of ownership," 20 million euros ($28.2 million) had to be deposited in the form of a bank guarantee.

"No guarantee means no take-off," he said. "If everything goes well for the prince and we establish that the aircraft really belongs to him, than he will get his bank guarantee back."

The guarantee was set at that level because that was estimated to be the value of the plane, which the prince is said to often pilot himself, the court said.

The seizure of the aircraft prompted a visit by Thai Foreign Minister Kasit Piromya on Friday to Berlin, calling the incident a "huge mistake" and meeting a senior German foreign ministry official to press for the plane's release.

"If this takes too long it might affect the feelings of Thai people towards German people and the country because this is related to the monarchy," Kasit had warned, saying the dispute had "nothing to do" with the royal.

The German government had said it regretted the incident but stressed that it was powerless to act, insisting it was a matter for the courts.

The dispute goes back more than 20 years to the involvement of DYWIDAG, which merged with construction firm Walter Bau in 2001, in building a motorway link between Bangkok and Don Muang airport.

After "numerous breaches of contract by the Thai government", Walter Bau, by then insolvent, in 2007 claimed for damages.

"We have been trying for years ... to have our justified demands for more than 30 million euros met, and this drastic measure is basically the last resort," Walter Bau's insolvency administrator said when the plane was seized.

"The Thai government keeps playing for time and has not reacted to Schneider's demands. Even the involvement of the relevant departments of the German government proved fruitless."

Contacted by AFP on Tuesday, the insolvency administrator, Werner Schneider, was not immediately available for comment.

The Bild am Sonntag tabloid reported on Sunday that the prince had taken measures to prevent his Mercedes also being impounded, parking it at a luxury Munich hotel where it was being watched over by 10 bodyguards.

-- (c) Copyright AFP 2011-07-20

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Thai Foreign Ministry has yet to study German Court's demand of 20 million euros guarantee

Foreign Ministry Deputy Spokesman Jessada Katawethi said Wednesday the ministry has yet to consult its legal team in Munich about a German Court's demand of a bank guarantee worth 20 million euros in exchange for the release of a plane of the Thai Crown Prince.

The court agreed to release the impounded plane on condition that the Thai government must deposit the bank guarantee.

Jessada said the Foreign Ministry would consult the legal team before making the next move.

-- The Nation 2011-07-20

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German court releases Thai plane

A German court on Wednesday ordered the release of an aircraft flown by the Crown Prince impounded in Germany pending a 20-million-euro (Bt845 million) bank guarantee.

The Boeing 737 was seized at Munich airport in Munich, Germany last week in a long-running dispute between Thailand and a German construction firm.

However the court in Landshut near Munich today allowed the plane, valued at around 20 million euros, to be released following assurances that it was the private property of the Crown Prince and not that of the Thai state.

The seizure of the aircraft prompted a visit by Thai Foreign Minister Kasit Piromya on Friday to Germany, calling the incident a "huge mistake" and meeting foreign undersecretary Cornelia Pieper to discuss the matter.

The German government has said it regretted the incident but stressed that it was powerless to act, insisting it was a matter for the courts.

-- The Nation 2011-07-20

[webfact]

20m euro cash guarantee demanded for Boeing

By The Nation, AFP

Foreign Ministry consults legal team on next move to retrieve plane from Germany

A German court yesterday ordered the release of an impounded Boeing 737 aircraft belonging to HRH Crown Prince Maha Vajiralongkorn, but only upon receipt of a 20-million euros (Bt851 million) bank guarantee.

Foreign Ministry deputy spokesman Jessada Katawethi said after the court's decision that the ministry had yet to consult its legal team in Munich, where the aircraft is impounded, about €20 million in exchange for the aircraft's release. The ministry will make its next move after talking with its lawyers, Jessada said.

The Boeing 737 was seized at Munich Airport on July 12 in a long-running commercial dispute between Thailand and the receivers of a now-insolvent German construction firm. The court in Landshut, near Munich, allowed the plane, valued at bout ¤20 million, to be released yesterday after assurances that it was the private property of HRH the Crown Prince, and not that of the Thai state, Agence France-Presse reported.

The aircraft's seizure prompted a visit to Germany by Thai Foreign Minister Kasit Piromya on Friday. He called the incident a "huge mistake" and met foreign under-secretary Cornelia Pieper to discuss the matter.

Amid fears of worsening bilateral relations, the German government said it regretted the incident but stressed that it was powerless to act, insisting it was a matter for the courts.

The dispute goes back more than 20 years to the involvement of Dywidag, which merged with construction firm Walter Bau in 2001, in building a motorway link between Bangkok and Don Mueang Airport.

After "numerous breaches of contract by the Thai government", Walter Bau, by then insolvent, claimed for damages in 2007.

"We have been trying for years ... to have our justified demands for more than ¤30 million met, and this drastic measure is basically the last resort," Walter Bau's insolvency administrator said when the plane was seized.

"The Thai government keeps playing for time and has not reacted to [insolvency administrator Werner] Schneider's demands. Even the involvement of the relevant departments of the German government proved fruitless."

-- The Nation 2011-07-21

[webfact]

Thailand rules out paying to free prince's plane

BANGKOK, July 21, 2011 (AFP) - Thailand's foreign minister on Thursday ruled out paying a multi-million dollar bank guarantee to secure the release of the Thai crown prince's jet, which has been impounded in Germany.

The decision not to fork out the 20 million euros ($28 million) ordered by a German court in exchange for Maha Vajiralongkorn's Boeing 737 adds a further twist to an uncomfortable episode that has threatened ties between the nations.

"We are confident that the aircraft belongs to the crown prince. He is not involved with this case and the documents are very solid, so there is no need to pay the guarantee of 20 million euros," said Thai Foreign Minister Kasit Piromya.

The aircraft was seized at Munich airport on June 12 in a long-running dispute with the receivers of an insolvent German construction firm who say they are owed almost 40 million euros ($57 million).

But on Wednesday a court in nearby Landshut said it had received an assurance under oath from the Thai Department of Civil Aviation's director that the plane belonged to the prince, not the Thai state, as well as a 2007 registration certificate.

The deputy chief justice of the court, Christoph Fellner, said however that since these documents provided only a "presumption of ownership," a bank guarantee had to be paid.

Kasit, speaking to reporters after returning from Germany, said the court was in possession of documents submitted by the Thai government and would make a final ruling on ownership in August.

"The plane will be parked in the German airport until the case is resolved," he said.

The court said it set the guarantee to reflect the estimated value of the plane, which the prince is said to often pilot himself.

Kasit flew to Berlin following the seizure of the aircraft, calling the incident a "huge mistake" and meeting a senior German foreign ministry official to press for the plane's release.

The German government had stressed that it was a matter for the courts.

The spat goes back more than 20 years to the involvement of Germany's DYWIDAG, which merged with construction firm Walter Bau in 2001, in building a motorway link between Bangkok and Don Muang airport.

After "numerous breaches of contract by the Thai government", Walter Bau, by then insolvent, in 2007 claimed for damages.

-- (c) Copyright AFP 2011-07-21

[webfact]

Govt will fight jet case : Kasit

Rules out providing €20m bank guarantee; will provide clear evidence on ownership status of Boeing

The government would not deposit €20 million in the German court for release of the Boeing 737 often flown by HRH Crown Prince Maha Vajiralongkorn but would let the court complete the legal process, Foreign Minister Kasit Piromya said yesterday.

The court had earlier ordered the release of the impounded Boeing 737 aircraft but only after receiving a €20-million (Bt851 million) bank guarantee.

The government has informed the Crown Prince about developments in the case and has decided to battle it out in court by providing facts and clear evidence on the legal status of the aircraft, Kasit said.

"We are confident that the aircraft belongs to the Crown Prince. He is not involved with this case and the documents are very solid, so there is no need to pay the guarantee of €20 million," Kasit told reporters upon arrival from Germany.

The aircraft was seized at Munich airport on June 12 in a long-running dispute with the receivers of an insolvent German construction firm Walter Bau who say they are owed almost €40 million for investments in the Don Muang Tollway.

But on Wednesday, a court in nearby Landshut said it had received an assurance under oath from the director of Thailand's Department of Civil Aviation that the plane belonged to the prince, not the Thai state, as well as a 2007 registration certificate.

The deputy chief justice of the court, Christoph Fellner, said that as these documents provided only a "presumption of ownership", a bank guarantee had to be deposited, according to AFP.

Air Force Commander-in-Chief Air Chief Marshal Ittiporn Supawong reiterated that the Boeing really belongs to the Crown Prince as the Air Force had given it to him in 2007. The aircraft is no longer on duty with the Air Force. The documents for transfer of ownership have been cleared since then, he said.

The information on a website, which indicates the aircraft still belongs to the Air Force, is not correct and the website is run by a private group, not the Royal Thai Air Force, he said. "So that information cannot be used in the court to prove ownership," he said.

Officials from the Department of Civil Aviation and legal experts could prove the ownership of the aircraft in the German court, Kasit said.

The Office of the Attorney-General would call a meeting today to wrap up the case and prepare solid evidence for the court trial, he said.

The aircraft must remain parked at the Munich Airport until the case ends by the second week of August, Kasit said.

-- The Nation 2011-07-22

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Thai govt filing lawsuit against Walter Bau for asking German court to seize royal jet as aircraft unconnected to lawsuit btw Thailand-firm /MCOT

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THAIGERMAN DISPUTE

Crown Prince asks govt not to pay for plane

By The Nation

His Royal Highness Prince Maha Vajiralongkorn has expressed concern over Thai people's feelings in the wake of the seizure of his private Boeing 737 by the German authorities and asked the Thai government not to pay a deposit demanded in order to retrieve the aircraft, Attorney General Julasing Wasantasing said yesterday.

He assured that documents sent to German authorities would prove the prince's private ownership of the aircraft - a key legal condition that would make the seizure of the Boeing 737400 at Munich Airport illegitimate.

"His Royal Highness has acknowledged Thai people's feelings towards the issue, and would like Thai people to understand that he has not committed any violations relating to navigational or bilateral regulations [involving his regular flights between Thailand and Germany]," he said.

The documents contained a list of explanations about insignia and other marks on the aircraft that signified the prince's private ownership of it, although the Boeing 737400 was purchased by the Royal Thai Air Force. Registration details in international records also show the prince owns the aircraft privately, he added.

Julasing said His Royal Highness had even suggested that Thailand should not make the ค20 million deposit demanded by the German authorities in exchange for the revocation of its seizure of the aircraft.

"But the Thai government will, if necessary, pay the money to secure immediate retrieval of the aircraft," he added.

Thai authorities and the Foreign Ministry have so far concluded that no money should be paid to the German authorities but a court session and subsequent trials will soon work through the dispute.

The first court session should take place by late next month. Countersuits against Walter Bau, which forced the seizure through a German court order, and its representative Werner Schneider, are being contemplated by the Office of the Attorney General.

-- The Nation 2011-07-23

[Lite Beer]

Attorney-General: Plane does not belong to govt

By The Nation on Sunday

The Office of the Attorney-General is prepared to present evidence at the German Court, possibly in late August, confirming that the Boeing 737 aircraft impounded at the Munich airport does not belong to the Thai government, a senior official said yesterday.

Attorney-General Julasing Wasantasing said that the legal team was confident and had already gathered evidence from witnesses and documents to prove the Thai government did not own the plane.

They are waiting for a Berlin court to set a date.

The aircraft, used by HRH Crown Prince Maha Vajiralongkorn, was impounded by court order upon a request from the German construction company Walter Bau, which is currently in a court battle with the Thai government over a business dispute.

The court agreed to release the plane only on payment of a 20-million euro bond, a ruling that the Thai government has appealed.

-- The Nation 2011-07-24

[george]

Thai prince's second jet faces impounding: report

Sun Jul 24, 2011 8:43am EDT

REUTERS/Sukree Sukplang

FRANKFURT (Reuters) - A German insolvency administrator was on Sunday quoted as saying he was considering impounding a second jet used by the Thai Crown Prince, reported German tabloid Bild am Sonntag.

"We are considering further steps, including seizing the prince's second plane," the paper quoted insolvency administrator Werner Schneider as saying.

German insolvency officials seized a Boeing 737 used by Crown Prince Vajiralongkorn almost two weeks ago to force the Thai government to repay a debt linked to a Bangkok road construction project.

A court last week ruled the jet could be released upon payment of a 20 million euro deposit, an offer rejected by the Thai government, which maintains the jet is the personal property of the Prince and not the government.

Bild am Sonntag said the prince had the second plane flown over to Munich to replace the first one.

(Reporting by Victoria Bryan)

-- Reuters 2011-07-25

http://ca.reuters.com/article/topNews/idCATRE76N1CW20110724

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Attorney-General Rejects Second Jet Seizure Claim

The Office of the Attorney-General is denying a rumor that a German company is preparing to seize another Thai aircraft, saying the plane does not belong to the Thai government.

Attorney-General Julasing Wasantasing is downplaying claims that the German construction company, Walter Bau, has plans to seek to seize another Thai aircraft in Germany.

He said that he has asked a lawyer to submit a letter to Germany proving that the plane does not belong to the Thai Air Force.

Julasing said he had heard the rumor several days ago, at which time he immediately called officials to check the whereabouts of the jet.

He received confirmation that the second jet has not been seized.

The first aircraft, used by His Royal Highness Crown Prince Maha Vajiralongkorn, was impounded based on a court order that was requested by Walter Bau.

The case is being heard in court, with the dispute stemming from a long-running disagreement between the Thai government and the German contractor.

The court has agreed to release the plane, but only in exchange for a 20-million euro bank guarantee.

-- Tan Network 2011-07-25

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GERMANY

No basis for 2nd grab of royal plane : PM

By The Nation, Thai News Agency

Outgoing Prime Minister Abhisit Vejjajiva said yesterday that there was no ground for a German insolvency administrator to impound a second jet used by HRH Crown Prince Maha Vajiralongkorn.

Abhisit was responding to a report on Sunday by German tabloid Bild am Sonntag, which quoted insolvency administrator Werner Schneider as saying he was considering impounding a second jet used by the Crown Prince.

"We are considering further steps, including seizing the Prince's second plane," the paper quoted Schneider as saying. Bild am Sonntag said HRH the Crown Prince had the second plane flown to Munich to replace the first one.

Personal property

Attorney-General Chulasingh Vasantasing said he had already explained through a lawyer to the German insolvency administrator that the second jet was the Crown Prince's personal property and nothing to do with the government.

"As far as we know the plane has not been impounded," Chulasingh said.

German insolvency officials seized a Boeing 737 used by the Crown Prince while it was parked at Munich Airport in southern Germany on July 12. The move was aimed at forcing the Thai government to repay a debt in a commercial dispute dating back more than two decades between Thailand and a now-insolvent German construction firm that was building a road link to Bangkok's Don Mueang airport.

A German court ruled last week that the jet could be released upon payment of a ¤20-million (Bt855.14 million) deposit. The Thai government refused to do so, arguing that the jet was the personal property of the Crown Prince and not the government.

Abhisit said the attorney-general was preparing information to take legal action against the Walter Bau company.

He said the attorney-general had notified him that almost 90 per cent of information concerning the company's exercise of rights in bad faith had been collected. A complaint will be separately lodged excluding the appeals process. It is expected to be completed this week.

-- The Nation 2011-07-26