Thai Airways International Plc plans a spending spree to buy at least 46 new aircraft to replace older fleet models, and step up competition with new carriers in the region.
The national carrier, known as THAI from its initials, will buy the planes by 2017 in its 10-year business plan, president Apinan Sumanaseni said after a board meeting yesterday.
The airline, Southeast Asia's second-biggest carrier by market value, will retire 46 aircraft between 2008 and 2017, and will use the new planes to add routes.
THAI, whose airplanes are on average twice as old as those of rival Singapore Airlines[and it shows*], needs greater capacity to compete with carriers in Southeast Asia that are buying planes.
Expansion in Asian economies may help boost passenger travel growth in the region to outpace the global average, said the International Air Transport Association.
"The company has to complete the business plan as soon as possible to maintain competitiveness in the regional airline industry," said Mr Apinan. "The airline's fleet is relatively old compared with competitors."
THAI's 91 planes have an average age of 12 years, the airline said. SIA had 94 aircraft with an average age of six years and three months at the end of March, according to a May 11 press release by the carrier, the world's biggest by market value.
SIA expects to take delivery of eight aircraft, it said in the press release.
Mr Apinan did not say what types of aircraft THAI would buy.
The airline said in February it would order eight Airbus SAS A330-300 planes at a discount, as compensation for delays in the delivery of the six A380 superjumbos it has ordered.
The company expects deliveries of the A330 to begin from October next year and to be completed in 2010.
The A330-300s will be used to replace six Airbus A300-600s and two Boeing 747-300s, which it has been using for over 20 years.
THAI shares closed yesterday on the Stock Exchange of Thailand at 47.25 baht, unchanged, in trade worth 26.83 million baht.
Why are they buying the Airbus anyway? stopgap measure it sounds like., Are not most airlines shying away now from them especially the super-white-elephant jumbo anyway.
If they want to be cost competitive the newer Boeings are supposed to be greener and more economically viable to operate. For smaller planes and short hops Brazil's Embraer is supposed to be a winner.
I was so horny when I woke up this morning the crack of dawn looked good!
One reason THAI chooses Airbus is that Pilots can Jump between Airbus planes without loosing to much time to be re trained from one type of aircraft to another unlike with Boeings. The Fly by Wire Technology makes it possible.
On the cost efficency side The New Airbus A380 is 20 to 40% more cost effective than Boeings B747-400 but this deficit can be solved by using the Technology develloped for the Boeing 787 Dreamliner! Speaking of which if THAI would order this more greener Aircraft they would be wayback in Line and the delivery date would be the same as for the delayed A380 right now.
Your's the understudy
"Irie Daily"
In Love with Hua Hin since 19naughty9 and it ain't fading!!!
(My fable for All Things Japanese knows no boundaries!) Proud Student of Stamford University Hua Hin Campus from 1999 to 2004 (5th Batch of Graduates.)
“Once you survive Stamford U Hua Hin Campus only you can survive anything!!!”
At the moment you can get a better deal with Airbus and the A330 is a very good aircraft. Also Boeing has so many orders at the moment that some of their models aren't available for delivery before 2013. Incidentally Cargolux where I'm working at the moment is the lead customer for the 747-800F freighter and they are supposed to get the first one in 2009.
To my man STEVE G did you ever hafta deal with russian build Ilyushin IL 96 - 300/400 and the MT version of Aircraft? I just saw on TV that the Russians Presidents Valdimir Putins official Aircraft was one IL 96 M/T that just landed in Rostock Laage Airport for the G8 Summit here in Heiligendamm, Germany!
Hey It's an Idea worth think about. What if Thai Airways would split Their Airplane order and buy 4 IL 96 and 4 Airbus A330-300 What is your opinion on this please?
Your's the understudy!!!!
In Love with Hua Hin since 19naughty9 and it ain't fading!!!
(My fable for All Things Japanese knows no boundaries!) Proud Student of Stamford University Hua Hin Campus from 1999 to 2004 (5th Batch of Graduates.)
“Once you survive Stamford U Hua Hin Campus only you can survive anything!!!”
Funny you should mention that Understudy, Mr. Putin visited Luxembourg last month and turned up here with two IL-96’s as well as a couple of other aircraft, his own car and over a hundred security men! This was all for a visit that lasted about eight hours.
Ups's Sorry STEVE G This News must have slipped my radar. Thanks again for the Answer This explains a lot why all Western Airlines Don't buy Ilyushin Aircrafts!
Your's "Irie Daily"
In Love with Hua Hin since 19naughty9 and it ain't fading!!!
(My fable for All Things Japanese knows no boundaries!) Proud Student of Stamford University Hua Hin Campus from 1999 to 2004 (5th Batch of Graduates.)
“Once you survive Stamford U Hua Hin Campus only you can survive anything!!!”