Thai Airways To Acquire 15 More Aircraft

Thai Airways International (THAI) has announced its intention to lease an additional 15 aircraft to service long-haul and regional routes by 2014.

The lease agreements will see the company acquire seven 300-seat aircraft for regional routes via a Bt31.3 billion (about $US949 million) financial lease for regional routes, and eight 350-seat aircraft for long-haul routes through operating leases running of between 10 and15 years.

THAIs chairman, Ampon Kittiampon, said the airline will also set aside an additional Bt922 million ($27.8 million) for two replacement engines for the regional aircraft and Bt3.3 billion ($99.5 million) for three replacement engines for the long-haul aircraft.

The 15 dry leased aircraft are in addition to five A330-300 aircraft already ordered by THAI which will enter service this year and a further six A380 aircraft schedule to enter the fleet in 2012 and 2013.

Mr Ampon said the new energy-efficient aircraft will help THAI meet the European Union's stricter greenhouse gas emission restrictions, which will see airlines flying into EU countries face emission quotas commencing in 2012 aimed at lowering greenhouse gases to limit climate change.

The THAI chairman also said the airline will continue to focus on reducing non-fuel expenses by about Bt12 billion ($US361.8 million) this year and on other operational areas aimed at the airline becoming profitable in 2010 as scheduled.

THAI currently operates a mixed fleet of 89 Boeing and Airbus jet aircraft, as well as two French-Italian ATR turbo-prop aircraft with an average fleet age of 11.6 years – considerably older than neighbouring Singapore Airlines where the average fleet age is just six years.

The acquisition of the 15 additional aircraft comes on top of an announcement last December that the airline plans to retrofit 12 aircraft at a cost of Bt4.5 billion ($US135.7 million) as part of a fleet renewal plan.

In 2008 THAI, for the first time in its 49-year history, reported an operating loss of around Bt21 billion ($633.3 million) – primarily blamed on poor fuel-hedge pricing strategies that saw it paying above market price after fuel prices dropped from previous record highs.