AVIATION / AIRBUS DELAYS

THAI negotiating compensation deal

BOONSONG KOSITCHOTETHANA

Thai Airways International is leaning toward accepting Airbus's offer of compensation for delivery delays of A380 superjumbos, say sources familiar with the talks. Acceptance could mean the flag carrier would buy eight new medium- to long-range A330-300 jetliners at a discount from the European planemaker while retaining its orders for the the six megajets.

The THAI board on Thursday delegated directors Pichai Chunhavajira, Sirin Nimmanahaeminda and Sivaporn Dardarananda to negotiate with Airbus executives.

The board, chaired by ACM Chalit Pukbhasuk, has given the trio a mandate to secure better terms with Airbus, especially on the proposed purchase of the eight A330-300s plus an option for four others.

Talks were still continuing at press time yesterday at THAI's head office in Bangkok.

Sources have confirmed, however, that Airbus has offered to reduce the prices of its A330-300s by $10 million each to about $90 million if THAI opts not to cancel the A380 orders, worth around $1.8 billion.

Among the key issues being negotiated are the deposits the airline needs to place for the A330-300s and their delivery dates.

Emerging from a 10-hour meeting at almost midnight on Thursday, ACM Chalit said the first of A330-300s could be could be delivered in late 2008 or 2009.

ACM Chalit, also commander-in-Chief of the Royal Thai Air Force, said that any agreement would require final approval by the THAI board and the cabinet.

But he cautioned that it was still ''possible'' that THAI would cancel the purchase of the A380s if the talks were inconclusive.

THAI wants to phase in the A330-300s, each capable of carrying 295 passengers in a three-class cabin layout over 10,500 km, into its fleet over the next three to five years. They will replace eight its 22 ageing A300-600s that have been in service for 20 years.

Critics say THAI has been too hasty to embrace the Airbus product and should be giving more consideration to a rival model, the Boeing 777-200.

Deliveries of the A380s, hit by two-year delay due to technical problems, to THAI are now expected to be 22 and 24 months beyond the already rescheduled November 2009 start.

The A380 can fly over 550 passengers over a range of 15,000 km non-stop.

THAI plans to use the superjumbos on its long-haul high-density routes such as those from Bangkok to London, Paris and Frankfurt, as congestion at those European airports means they cannot increase the frequency of flights.

THAI shares closed yesterday on the SET at 42.75 baht, up 50 satang, in trade worth 156.46 million baht.

Bangkok Post
Sunday January 28, 2007