Thai Airways reconsidering A380 order

[s7r0ng3r]

http://www.bangkokpost.com/business/...jumbo-jet-deal

Thai Airways International (THAI) seems poised to cancel its order of six A380 superjumbo jets, which it considers not viable for its operations and, at a total cost of about US$1.8 billion, too expensive to fund.

Wallop Bhukkanasut, chairman of THAI's executive board, revealed the national carrier's revised stance on procuring the world's largest civil aircraft, which it agreed to purchase back in 2007 when the carrier was struggling to weather its worst financial crisis in 49 years.

"It is not economically viable to have and deploy this aircraft in our network," Mr Wallop said at the sidelines of the International Air Transport Association (IATA) annual general meeting being held in Kuala Lumpur.

Ouch. Personally, I'd love to see more A380s flying. It'll increase my chances of flying in one.

[9V-JKL]

Didn't they say that 2 years ago?

[s7r0ng3r]

Didn't they say that 2 years ago?

I have absolutely no idea.

[-F-]

Thai are holding up to their promise of equipment swaps... even extending to before the aircraft are purchased

[SQalMundo]

If THAI Airways has the A380s irregardless, which routes are they going to deploy on?

[scooby5]

My first guess would be to say Frankfurt and London, but given the number of Russians in Pattaya these days, Moscow might be up there too

[9V-JKL]

TG stuck with A380

Thai Airways International (THAI) has no option but to keep its order for six Airbus 380 megajets, because cancelling could have huge legal and financial consequences.

"The best option available for us is to delay taking delivery of those A380s," Wallop Bhukkanasut, the chairman of THAI's executive board, said last night.

The cancellation would expose the airline to US$700 million in penalty costs - $300 million in pre-payment for airframes and $400 million for contracts already committed.

http://www.bangkokpost.com/business/...uck-with-a380s

[Kyo]

The way TG is run, they're better off cancelling and paying the penalty for the ones they can cancel, and deferring the ones they can't.

They will of course, lose 'face', but that's better than making a definite loss way into the future on routes that they can't sustain. Even on current aircraft. Someone's gonna get walloped, alright...

[Nick C]

TG's fleet management team thinks they are playing Pokemon. Gotta catch 'em all.

[B727]

I remember seeing this article in the paper. LHR and CDG are obvious destinations, plus it might even free up some planes for them to consider opening up YVR!