Thai Airways aircraft NOT for sale to Saudi Prince

[webfact]

Thai Airways aircraft NOT for sale to Saudi Prince
BY ANDREW J. WOOD, ETN THAILAND CORRESPONDENT

BANGKOK, Thailand (eTN) – Thai Airways (TG) has resolved not to sell one of their four decommissioned A340-500s to British firm, AvCon Worldwide, despite them having already put down a deposit of US$2.5 million.

AvCon represents the interests of Saudi Arabia's Prince Faisal al-Saud. Thai authorities had forewarned that AvCon's proposed acquisition price of US$23.5 million was too low and are now considering possibilities to make use of the planes and will propose the finding to the airline's board by next month.

Thai Airways Executive Vice President Teerapol Chotichanapibal said that should the aircraft fail to find buyers, it would likely consider redeploying them into operational use on flights limited to 4 to 6 hours, Japan in particular. "It would be OK to cover their maintenance costs," he said. "It's difficult to make profits because fuel costs of these planes are high."

Thai Airways had placed a book value of US$66.9 million on each of the aircraft which are fast disappearing from the skies given their poor fuel economy. [read more...]

Full story: http://www.eturbonews.com/39920/thai-airways-aircraft-not-sale-saudi-prince

-- eTN 2013-11-22

[FarangTalk]

Going back on an agreed deal?

Par for the course here.

Sent from my SM-N900 using Thaivisa Connect Thailand mobile app

[apetley]

I remember reading a while ago that one middle eastern airline, Emirates I think, have effectively valued their A340-500's at zero as they are so inefficient and nobody wants them. How Thai can put such a high book value on them is beyond me.

[ratcatcher]

I remember reading a while ago that one middle eastern airline, Emirates I think, have effectively valued their A340-500's at zero as they are so inefficient and nobody wants them. How Thai can put such a high book value on them is beyond me.

It's what they do.

Planes, houses, cars, rice all over valued on the books. To quote market value would require a loss of face by them.

Thais will keep a house in a moo baan, unoccupied for years, slowly deteriorating and still attempt to get top value for it.

[Local Drunk]

I remember reading a while ago that one middle eastern airline, Emirates I think, have effectively valued their A340-500's at zero as they are so inefficient and nobody wants them. How Thai can put such a high book value on them is beyond me.

It's what they do.

Planes, houses, cars, rice all over valued on the books. To quote market value would require a loss of face by them.

Thais will keep a house in a moo baan, unoccupied for years, slowly deteriorating and still attempt to get top value for it.

The concept of "Sunk Costs" is alien to Thais. They'll never understand that something is better than nothing when it comes to business. Those planes have been flown for untold millions of miles and have carried an untold amount of passengers and have no doubt paid for themselves, but the Thais insist on playing hard ball for their price for planes that they will never put up in the air again.

Stupid beyond belief...

[ginjag]

I remember reading a while ago that one middle eastern airline, Emirates I think, have effectively valued their A340-500's at zero as they are so inefficient and nobody wants them. How Thai can put such a high book value on them is beyond me.

It's what they do.

Planes, houses, cars, rice all over valued on the books. To quote market value would require a loss of face by them.

Thais will keep a house in a moo baan, unoccupied for years, slowly deteriorating and still attempt to get top value for it.

The concept of "Sunk Costs" is alien to Thais. They'll never understand that something is better than nothing when it comes to business. Those planes have been flown for untold millions of miles and have carried an untold amount of passengers and have no doubt paid for themselves, but the Thais insist on playing hard ball for their price for planes that they will never put up in the air again.

Stupid beyond belief...

Problem here is these A340s have done little miles compared to the norm. like you buy a car for your taxi business and not run it, same same.

Instead of using them on the routes they were designed for they used them on other routes that didn't suit-plus their prices were too expensive so the planes were never full. In service on good routes and prices at a reasonable level filling these aircraft on long haul would not be at a loss.

Stood on tarmac under cover is stupid. Surely to sell all at a reduced cost and put that money into a new A380 without paying lease money.

DOH. idiots. Why are Thai Airways struggling ??? here is your answer -attitude problem-sick management, too many free VIP seats, money pocketed ??? maybe I don't know BUT ???? Maybe Thai should get these planes flying, you can sell easier if used than not used.

Edited November 22, 2013 by ginjag

[JoeThePoster]

They should have given them to the Saudis free in exchange for the Blue diamond.

[Local Drunk]

I remember reading a while ago that one middle eastern airline, Emirates I think, have effectively valued their A340-500's at zero as they are so inefficient and nobody wants them. How Thai can put such a high book value on them is beyond me.

It's what they do.

Planes, houses, cars, rice all over valued on the books. To quote market value would require a loss of face by them.

Thais will keep a house in a moo baan, unoccupied for years, slowly deteriorating and still attempt to get top value for it.

The concept of "Sunk Costs" is alien to Thais. They'll never understand that something is better than nothing when it comes to business. Those planes have been flown for untold millions of miles and have carried an untold amount of passengers and have no doubt paid for themselves, but the Thais insist on playing hard ball for their price for planes that they will never put up in the air again.

Stupid beyond belief...

Problem here is these A340s have done little miles compared to the norm. like you buy a car for your taxi business and not run it, same same.

Instead of using them on the routes they were designed for they used them on other routes that didn't suit-plus their prices were too expensive so the planes were never full. In service on good routes and prices at a reasonable level filling these aircraft on long haul would not be at a loss.

Stood on tarmac under cover is stupid. Surely to sell all at a reduced cost and put that money into a new A380 without paying lease money.

DOH. idiots. Why are Thai Airways struggling ??? here is your answer -attitude problem-sick management, too many free VIP seats, money pocketed ??? maybe I don't know BUT ???? Maybe Thai should get these planes flying, you can sell easier if used than not used.

"Instead of using them on the routes they were designed for they used them on other routes that didn't suit-pluss their prices were too expensive so the planes were never full. In service on good routs and prices at a reasonable level filling these aircraft on long haul would not be at a loss."

There we have it... My apologies to the aircraft for saying they had "millions of miles on them"... Please forgive me you old unwanted birds.

[55Jay]

A very low price by a rich man to inferior, desperate SE Asians.

Thais won't accept such a blatant snub, hence a public statement in the media to demonstrate their pride and principled stance in this matter. If it wasn't for this article, I would of never known about it but, now that I've seen the Thai response, I am tingling with nationalistic pride for Thailand. They showed them!

Can't see why Prince Faisal's group would want these, maybe regional Haj flights? Buy cheap airplanes, pack them to the rafters with pilgrims and if they crash, it was god's will.

[ginjag]

A very low price by a rich man to inferior, desperate SE Asians.

Thais won't accept such a blatant snub, hence a public statement in the media to demonstrate their pride and principled stance in this matter. If it wasn't for this article, I would of never known about it but, now that I've seen the Thai response, I am tingling with nationalistic pride for Thailand. They showed them!

Can't see why Prince Faisal's group would want these, maybe regional Haj flights? Buy cheap airplanes, pack them to the rafters with pilgrims and if they crash, it was god's will.

All this is fine talk but if it wasn't the Prince but Laos/Burma same.

Look run the planes or get them sold at a loss better than rot on tarmac. If you have already bought these Why on earth would you lease new aircraft -because they are more fuel efficient ??? good you have saved fuel BUT you have to pay the lease STUPID ??? earlier I likened this to buy a gas guzzling car for your taxi business-don't run it, so rent an eco car, STUPID ????-----run them and sell as up and running -maintained.

[MaxLee]

Thai Airways aircraft NOT for sale to Saudi Prince

I think the Saudi Prince couldn't give a damn about Thai Airways crappy old planes that were never renovated

[GentlemanJim]

The value of such a high level snubbing to a senior member of the Saudi Royal Family is likely to be much more than the money Thai think they have 'saved' by not selling! Going back on the deal after a deposit is taken is very bad. I hope Thai Airways don't use any Saudi based fuel hedging companies.

Ratcatcher above is right about Thai attitudes and lack of common sense with their assets. Opposite where I live there was a very nice clean three story house for rent at 8000 baht a month. I thought it would be a nice place for my sons to come and stay so I offered the guy 7000 for it. He said no. 6 months later the house was still empty and then someone came along and offered 8000. The guy said to me, 'see, I knew it was worth waiting for the full amount'. His face was a picture when I explained that in the last 6 months I would have paid him 42K and it will now take him 3.5 years of renting at full price just to make back the money he lost by not renting to me. The look on his face was 'oh s**t, why didn't I think of that'! Thai Airways are stupid beyond stupid for not moving one of these aircraft for hard cash. In 6 months from now they will still all be sat on the tarmac.

Edited November 22, 2013 by GentlemanJim

[lawrence1366]

I remember reading a while ago that one middle eastern airline, Emirates I think, have effectively valued their A340-500's at zero as they are so inefficient and nobody wants them. How Thai can put such a high book value on them is beyond me.

It's what they do.

Planes, houses, cars, rice all over valued on the books. To quote market value would require a loss of face by them.

Thais will keep a house in a moo baan, unoccupied for years, slowly deteriorating and still attempt to get top value for it.

The concept of "Sunk Costs" is alien to Thais. They'll never understand that something is better than nothing when it comes to business. Those planes have been flown for untold millions of miles and have carried an untold amount of passengers and have no doubt paid for themselves, but the Thais insist on playing hard ball for their price for planes that they will never put up in the air again.

Stupid beyond belief...

I wouldn't be flying on that plane when they put it back to use considering the recent accidents which speaks alot on the kind of maintenance that they do, or perhaps not done????

[h90]

Going back on an agreed deal?

Par for the course here.

Sent from my SM-N900 using Thaivisa Connect Thailand mobile app

PTP put their cronies into Thai Airways management...Nothing better to expect.

[Thai at Heart]

The effort to spin a stupid outcome as a national victory is really pathetic.

[Ricardo]

A very low price by a rich man to inferior, desperate SE Asians.

Thais won't accept such a blatant snub, hence a public statement in the media to demonstrate their pride and principled stance in this matter. If it wasn't for this article, I would of never known about it but, now that I've seen the Thai response, I am tingling with nationalistic pride for Thailand. They showed them!

Can't see why Prince Faisal's group would want these, maybe regional Haj flights? Buy cheap airplanes, pack them to the rafters with pilgrims and if they crash, it was god's will.

The OP says they were just looking for one aircraft, perhaps it's a spare private-jet, for when his other one is being washed ?

The seriously-rich are seriously-different from the rest of us !

[worgeordie]

Just hope they get their deposit back, as Thais do not

like paying back any monies,once its in their hands.

maybe its been spent on rice purchases.

In the meantime the planes are slowly deteriorating,

my Dad used to say, your first offers the best.

regards Worgeordie

[Thai at Heart]

The bit that they left off the headline is.

"And the plan for the planes is?????"

[tomross46]

So these planes will be parked at Dong Muang and allowed to deteriorate. There will be no maintenance on them, the turbines will not be rotated and it will not make any difference, what is on the books. They will be only be able to be used for scrap metal.

[Maestro]

I'd like to see the text of the contract covering the deposit of USD 2.5 million.

[bushman1666]

Same mentality that makes a five year old pickup worth almost the same as a new vehicle fresh out of the showroom. TiT

[55Jay]

Same mentality that makes a five year old pickup worth almost the same as a new vehicle fresh out of the showroom. TiT

Applies to rice as well.

[eddie61]

I remember reading a while ago that one middle eastern airline, Emirates I think, have effectively valued their A340-500's at zero as they are so inefficient and nobody wants them. How Thai can put such a high book value on them is beyond me.

It's what they do.

Planes, houses, cars, rice all over valued on the books. To quote market value would require a loss of face by them.

Thais will keep a house in a moo baan, unoccupied for years, slowly deteriorating and still attempt to get top value for it.

The concept of "Sunk Costs" is alien to Thais. They'll never understand that something is better than nothing when it comes to business. Those planes have been flown for untold millions of miles and have carried an untold amount of passengers and have no doubt paid for themselves, but the Thais insist on playing hard ball for their price for planes that they will never put up in the air again.

Stupid beyond belief...

Problem here is these A340s have done little miles compared to the norm. like you buy a car for your taxi business and not run it, same same.

Instead of using them on the routes they were designed for they used them on other routes that didn't suit-plus their prices were too expensive so the planes were never full. In service on good routes and prices at a reasonable level filling these aircraft on long haul would not be at a loss.

Stood on tarmac under cover is stupid. Surely to sell all at a reduced cost and put that money into a new A380 without paying lease money.

DOH. idiots. Why are Thai Airways struggling ??? here is your answer -attitude problem-sick management, too many free VIP seats, money pocketed ??? maybe I don't know BUT ???? Maybe Thai should get these planes flying, you can sell easier if used than not used.

I suggest very high ticket prices: they cant be 28% better than British Airways...... or maybe the Thai smile justifies the cost.

Personally, I prefer the Thai smile vertical, and can get 10 of those up close and personal for the extra price of a horizontal smile on TG

Edited November 22, 2013 by eddie61

[NanLaew]

... the turbines will not be rotated...

Is this significant?

[Crushdepth]

That'll improve relations with the Saudis.

I'm suprised they didn't sell it to him then just not deliver it.

[Sydebolle]

Keeping too high asset values in the balance sheet makes the company looking much better than it is. If you ask me, this airline - being ransacked by politicians and staff alike - would be declared bankrupt many many years before. As it is, the 70% holding by the Ministry of Finance make it essentially an unofficial state asset and, like many other governments on this planet, they consider the carrier a status symbol rather than a bottom-line operated entity.

Thai Airways International as a company, their old aircraft and unfriendly ground and cabin staff sucked for the last 30 years as far as I can remember. The last pleasant flight (to Mae Hong Sorn on a Short 330 aircraft) was operated by TH (Thai Airways), the smaller mother company of TG (Thai Airways International).

[rotary]

I remember reading a while ago that one middle eastern airline, Emirates I think, have effectively valued their A340-500's at zero as they are so inefficient and nobody wants them. How Thai can put such a high book value on them is beyond me.

I guess the same way the banks have a repossessed property they try to sell for 1 million then after 5 years it is not sold so you ask the price and they tell you 1.5 million. Then when you tell them well you have had this 5 years at 1 million why is it now 1.5 million they just say price go up. ha ha

[phitsanulokjohn]

I'm not saying the Thai's are stingy, but if they had an arseful of haemorrhoids,they'd want to charge you to extract them.

[Mudcrab]

A very low price by a rich man to inferior, desperate SE Asians.

Thais won't accept such a blatant snub, hence a public statement in the media to demonstrate their pride and principled stance in this matter. If it wasn't for this article, I would of never known about it but, now that I've seen the Thai response, I am tingling with nationalistic pride for Thailand. They showed them!

Can't see why Prince Faisal's group would want these, maybe regional Haj flights? Buy cheap airplanes, pack them to the rafters with pilgrims and if they crash, it was god's will.

All this is fine talk but if it wasn't the Prince but Laos/Burma same.

Look run the planes or get them sold at a loss better than rot on tarmac. If you have already bought these Why on earth would you lease new aircraft -because they are more fuel efficient ??? good you have saved fuel BUT you have to pay the lease STUPID ??? earlier I likened this to buy a gas guzzling car for your taxi business-don't run it, so rent an eco car, STUPID ????-----run them and sell as up and running -maintained.

yes for anyone involved in industry its called whole of life cost of ownership......get rid of them while they still have some value.

[Mudcrab]

I remember reading a while ago that one middle eastern airline, Emirates I think, have effectively valued their A340-500's at zero as they are so inefficient and nobody wants them. How Thai can put such a high book value on them is beyond me.

It's what they do.

Planes, houses, cars, rice all over valued on the books. To quote market value would require a loss of face by them.

Thais will keep a house in a moo baan, unoccupied for years, slowly deteriorating and still attempt to get top value for it.

The concept of "Sunk Costs" is alien to Thais. They'll never understand that something is better than nothing when it comes to business. Those planes have been flown for untold millions of miles and have carried an untold amount of passengers and have no doubt paid for themselves, but the Thais insist on playing hard ball for their price for planes that they will never put up in the air again.

Stupid beyond belief...

I wouldn't be flying on that plane when they put it back to use considering the recent accidents which speaks alot on the kind of maintenance that they do, or perhaps not done????

But you will never know if you are like most commuters