Thai Airways aircraft NOT for sale to Saudi Prince

[Mudcrab]

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

Is this significant?

yes

[lemoncake]

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.

Let me tell you more about THAI way of thinking and doing business.

I just flew back from Oz and had lots of extra luggage.

Qantas and Emirates charge $30 per kg, but if prebooked, they give 30% discount.

THAI, charges $58 per kg and does not give any discount.

Also Qantas and Emirate allow 30kg per customer and do not even check cabin luggage, THAI allows 20kg and do check cabin luggage.Who would you fly with? keeping in mind that ticket price is same

Point is THAI do not seem to think logically or long term or any term for that matter.

[dcutman]

There goes a good opportunity to sell something for $23 million, worth $0. Brilliant, let it rot, and pay somebody to scrap the heap in a few years.

[Thai at Heart]

There goes a good opportunity to sell something for $23 million, worth $0. Brilliant, let it rot, and pay somebody to scrap the heap in a few years.

Better still, pay your brothers scrap company 1mn USD to take it away...

[dcutman]

There goes a good opportunity to sell something for $23 million, worth $0. Brilliant, let it rot, and pay somebody to scrap the heap in a few years.

Better still, pay your brothers scrap company 1mn USD to take it away...

More than likely, that sort of a deal will be a done. Or it might already be, who knows with these criminals/CEO's in charge of all the state owned companies.

[cosmont]

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...

Of course you are right but they still operate few Boeing 747 !!! I am wondering if the 747 is more costly than A340 500...

[Prbkk]

Tomorrow, Singapore Airlines operates the last of its Singapore- Newark non-stop flights with the 340. We can be sure they won't be sitting on the Tarmac gathering dust...they'll be sold and off the books in a flash. Probably to a Saudi prince.

[Ulic]

As I understand it the Saudi Prince wants to use it as his personal private jet. Can be made

much more comfortable to travel around in than a G 6 at half the price. Put another 15-20 million

in for upgrades and he will be styling large. He does not care about the price of fuel. He sells

the stuff. Plenty of choices for him though. It seems Thais like to keep things on the books

that way you never loose money. Keep it valued at full purchase price much like World Com

did with all there cars/trucks and the rest of there equipment. Never depreciate it on the books

never sell it like the rice. That way you never loose. Generally accepted accounting principals of Thailand.

[crazyawm]

very old home 30 year - price same new, but if you buy it - you need pay same price for repair

car 10 year - discount just 100.000 THB from new car

very old aircraft...

all Ok, guys

this Thailand =)

[ice1318]

Thai Airways mightn't be the only stupid party involved. Why did British firm disclose the identity of their client? Just keep quiet, pay the price and take delivery. Presumably unaware of the long-standing Thai-Saudi rift? Surely not? Anyway, bang goes their commission.

Working in Saudi at the moment, petrol price GBP 0.10 / $0.15 a litre.

[Minpin]

I seached the internet and came up with one broker who has 14 A340 for sale.

They range from 88 million to 25 million. The high price has 30 hours on it. As they would say in the car trade delivery mileage only.

[NanLaew]

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

Is this significant?

yes

Please explain.

[Arkady]

What seems not right here is that a big fuss is being made only because a Saudi prince was behind the failed deal. If there was a breach of contract, it doesn't matter who the counterparty was and it should be publicised. It is not quite clear whether this was a breach of contract or simply unethical behaviour by THAI in reneging on the deal after accepting a deposit like gazumping in the housing market. I am willing to believe that corruption is involved in all major procurements and sales by the airline. There is probably more to this than meets the eye.

[Arkady]

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).

Thai Airways and Thai Airways International were two separate companies, not mother and daughter. Thai Airways ran the domestic network until a crash in Phuket in the late 80s that was deemed the airline's fault. It was shut down and its assets and routes taken over by Thai Airways International which then dropped the "International" from its name. The reason for having two separate airlines until disaster struck was to maintain benefits for an additional board of air force directors who were gouging from the domestic airline with narry a concern for public safety.

[PaullyW]

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

Not terribly different from the North Koreans, as I've been saying for years.

Thais are generally pathetic. Not all of them. Just generally.

[paddyjenkins]

The lesson, as always and as should be widely known by now, is avoid doing business with Thailand unless all risks of dishonesty are removed. Like any Asian country you should never pay a deposit directly, always in escrow. But with Thailand my principle is cash on delivery, never ever before. And if they don't like those terms then show them the door.

[aidanhoran]

What else would you expect from Thais... Everything is overvalued in this country even their intelligence..

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