THAI fails to transfer four long-range jets

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THAI fails to transfer four long-range jets

Dismantler only offer at cut-rate price

Published: 11/09/2009 at 12:00 AM
Newspaper section: Business

Thai Airways International has failed in its most recent attempt to sell four long-range jets after the bidder low-balled the flag carrier, sources say.

A THAI Airbus A340-500, the type of jet for which the airline has struggled to find buyers, takes off from Suvarnabhumi Airport.

The bidder, believed to be a US aircraft dismantler, offered only $50 million apiece for the Airbus A340-500 jetliners, roughly a quarter the price THAI paid for them and significantly lower than the current $230-240 million price new.

The price offer left senior THAI executives dumbfounded, prompting them to consider abandoning any further bids to sell the aircraft, said THAI insiders.

THAI has spent more than a year searching for buyers who would offer a reasonable price for the aircraft, which can fly 16,000 kilometres non-stop.

Despite a number of verbal offers the only repeat bidder was the US aircraft dismantler, which reportedly wanted the aircraft to sell the parts.

"It seems impossible to sell them at a reasonable price. The market for this aircraft is quite niche and there seems to be little or no demand for it now," said a senior THAI executive.

The A340-500s were put up for sale after the airline terminated its daily Bangkok-New York flights last July.

Back then surging oil prices made the New York route unviable.

While THAI waits for buyers, the aircraft have been deployed on the Bangkok-Los Angeles non-stop routes and on the new Bangkok-Oslo service since June 15.

The only sensible option left for THAI is to keep the A340-500s and do a better job of utilising the planes for long-haul flights.

THAI intends to increase the frequency of its non-stop Bangkok-Los Angeles and Bangkok-Oslo flights for that reason, which will see the four jetliners fully utilised.

To make the aircraft more economical THAI is considering re-configuring the seat layout by removing business class and premium economy class seats to make room for about 50 more economy class seats.

Relate Search: Thai Airways International, THAI Airbus A340-500

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Kevin

Discussion 11 : 20/09/2009 at 07:02 PM11
Yes Timjack it was GF. I accept that configuration and age can colour your judgement. But definitely a fan of the (I guess) newer 777. GF service was top notch on both flights by the way. Cheers.
timjack

Discussion 10 : 19/09/2009 at 09:32 PM10
Kevin, sounds like you flew on GF, I agree with you, both aircraft types have different configurations. I would be put off Airbus after the 777 flight beforehand. If the airline was GF the A330/40s in their fleet are much older than the newer 777s. TG suffer the same problems, all their aircraft configurations vary from poor to good. They have not upgraded the older types, where other airlines have, hence the customer experience varies.

As I said in my previous post it depends on what airline you choose.

For example, SQ use both Airbus A340-500s SIN/JFK and 777s, both cabins are equally as comfortable.

Agree, comfort for the passenger forms opinions about Aircraft types and also airlines.

Try flying on one of those charter carriers that use 777 or A330 equipment, jammed in like sardines makes you feel bad about the aircraft type you are flying in.

As I said before "I have had many comfortable rides on an Airbus as well as on a Boeing." Equally I have had some horror flights on Airbuses and Boeing's.
Kevin

Discussion 9 : 19/09/2009 at 03:48 PM9
Flew on a Boeing 777 BKK to Bahrain, then an Airbus Bahrain to London. Same airline, similar size airplane. No comparison. Boeing was far superior. Bigger overhead lockers, more comfortable and wider seats, bigger video screens. And I am a European. Given the option I will avoid Airbus flights in future.
timjack

Discussion 8 : 18/09/2009 at 07:49 PM8
Pointman #2 Discussion 7 Why do you continually have so many bad things to say against Airbus? Do you work for Boeing or something? Airbus make good aircraft as do Boeing.

If you know anything about the current situation with the airline industry, the second hand market is dead for many aircraft types, just look at the "airplane storeage parks" in Arizona and elesewhere in America, they are full of second hand aircraft, including a few newer type's of Boeings too.

May be the A340-500 was a good idea at the time for TG to purchase, but the BKK-JFK route did not work for them. At the time when TG ordered A340 -500 fuel costs were much lower than they were when they were finally delivered.

No one in the industry could guess that the fuel price's would climb to the levels they did.

I have had many comfortable rides on an Airbus as well as on a Boeing. It really does depend on the airline you choose and their configurations.
Pointman #2

Discussion 7 : 15/09/2009 at 07:28 PM7
I talked to several travelers who changed airlines because they are in fear of Airbus safety. The seats on Airbus are very, uncomfortable. I understand why no-one is buying the aircraft. I wouldn't buy the Jumbo Airbus if they cut the price 50%. What I've read, has me concered about wiring, design and cabin pressure problem, regarding Airbus.
unlucky east-coaster

Discussion 6 : 15/09/2009 at 02:58 AM6
Restart the JFK to BKK flights that they were designed for. The plane was always full on those wonderful non-stop flights I took from NYC
Paul

Discussion 5 : 14/09/2009 at 08:54 PM5
Yes that's the way. Rip out the wider seats so you can cram in more squashed economy ones. Then continue flying at 30% capacity (if that) because you are more expensive than anybody else and the service is appalling.

What nonesense!

1. Lower the fares. I refuse to pay over the odds to fly TG.

2. Retrain ALL of your staff. Get rid of the surly, non performing, connected ones. Recruit massively from the Uni's and Colleges. They will be falling over each other to apply.

3. In 12 months problem solved.
Robert

Discussion 4 : 13/09/2009 at 07:08 PM4
This should end the debate about who makes the best airplanes, Airbus or Boeing. I have read that Thai knew these planes were on the verge of being obsolete when they bought them, but were pressured to do so because of EU quotas or tariffs on shrimp produced in Thailand. If this is so, then Thai deserves a break.
Annie

Discussion 3 : 11/09/2009 at 11:11 AM3
Agree ! I had a chance to do job training with Thai Airways and found many of them completely useless. OVERPAID for non performance.

Not that they don't know this fact but look every possibility to survive the company when they can easily get rid of those non-performing staff.

With fewer people, better working systems and processes, I have no doubt that Thai Airways can easily get through this difficult time.
Smarty

Discussion 2 : 11/09/2009 at 08:43 AM2
Thai should

1. Stream line ie:lay off all the over paid executives that have don't perform any duties other than show up for work.

2. Lower prices so that the planes won't fly with empty seats.

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THAI fails to transfer four long-range jets