source: Bangkok Post: 5 Apr 2008

THAI in market for eight more large jets

Thai Airways International Plc intends to order eight planes that can seat at least 400 passengers as part of a decade-long plan to replace its ageing fleet. The national carrier may add to its existing order for six Airbus A380s or opt for Boeing 747-8s, said vice-president Teeratat Pornpiboon. It will also buy 23 smaller planes, such as 787s or A350s.

THAI plans to order a total of 65 new planes to win more travellers and cut maintenance and fuel costs. It is also retiring about half of its existing fleet, which is on average almost twice as old as those of Singapore Airlines.

''THAI really needs to replace their old planes if they want to compete with other airlines,'' said Jim Eckes, managing director of industry consultant, Indoswiss Aviation in Hong Kong. ''New planes will be critical to THAI because it will help them save costs.''

The 65 new planes also include 20 single-aisle Airbus A320s and fourteen Boeing 787s.

THAI may have to reconsider the 787s as it may be unable to receive the planes when it needs them in 2011 or 2012, said president Apinan Sumanaseni. Boeing has delayed deliveries of the 787 because of production problems.

''We can't get the slots,'' he said. ''If we can lease, we will, at a reasonable price. If we can't, we will have to consider other aircraft such as 777s or A330s.''

Adding new planes will help the carrier cope with fuel prices that have surged 67% in Singapore trading in the past year, as they have more efficient engines. Higher fuel costs contributed to a 54% drop in THAI's net income in the three months ended Dec 31.

The airline's fuel bill for this year will likely rise to more than 80 billion baht, Mr Apinan said. THAI plans to raise its ticket surcharges soon because of the rising fuel prices, he said, without elaboration. It has increased levies twice since October. They cover about 65% of the additional fuel costs.

Unlike rivals Singapore Airlines and Hong Kong's Cathay Pacific Airways, THAI doesn't hedge any of its fuel needs. Hedging allows airlines to lock in prices for future fuel purchases, protecting them against increases.

THAI shares have fallen 25% this year, compared with a 3.6% slide for the benchmark SET Index. The shares closed yesterday at 29.25 baht, down 25 satang, in trade worth 23.9 million baht.

The carrier's first 510-seat A380, scheduled to arrive in 2010, will fly to London, Mr Apinan said. Later ones will fly to Frankfurt and Paris, he added. The double-decker plane has a range of 8,000 nautical miles (14,820 kilometres) and costs $282 million to $302 million, based on catalogue prices.

THAI also has outstanding orders for 15 twin-aisle Airbus aircraft, including eight A330-300s. Airbus gave the airline a discount on the planes, ordered in June, as compensation for delays in the deliveries of the A380s. BLOOMBERG NEWS
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quote:

The carrier's first 510-seat A380, scheduled to arrive in 2010, will fly to London

New aircraft for the BKK-LHR route in two years time. At long last!

I'm sure their then-retired 747s would be well received by these folks.


Packpao

Don't knock their 747s, they are still the 400 series and have probably got another 20 years of life in them at least.

It's their old interiors that have really let them down, BA, Qantas and many other airlines fly them just as old but at least they have renewed their cabins.

quote:

New aircraft for the BKK-LHR route in two years time. At long last!

colin 244

They will have lost a lot of customers by then, and they will have to compete with EVA on price.

packpao

Unfortunately the Bournemouth Aviation museum has been closed by the airport operator - The Manchester Airport Group. They need the ground it is on for a car park. So the ex Thai aircraft will have to look for another home.

Regards,
Dick