National carrier Thai Airways International said on Friday it is looking to buy second hand aircraft from other airlines after an offer to buy seven from bankrupt United Airlines failed.
“United has confirmed that they won’t sell us their planes. So we have to look for other second hand ones,” company chief Kanok Abhiradee told reporters.
In December, Transport Minister Suriya Jungrungreangkit said United had rejected the offer from Thai Air because the price was too low.
United Airlines, the number two US carrier, and its parent UAL, filed for the largest bankruptcy proceeding in aviation history in December 2002. Thai Airways, 67.8 percent owned by the Thai government, offered United USD$330 million for seven Boeing planes for delivery in 2004 and 2005.
The search for second-hand planes is part of Thai Airways’ 70 billion baht (USD$1.8 billion) plan to buy 17 aircraft over the next five years to boost its fleet.
It received two new Boeing planes late last year and now has 83 aircraft and rival planemaker Airbus said in August Thai Airways had ordered eight planes. The remaining seven were to come from United Airlines.
Thai Airways has said the United Airlines decision will have a minimal impact on its future operations.
By: greekdude1 - 18th February 2004 at 03:19
I was actually hoping the deal would go through. Not only does UA generate some much needed cash but they help out one of their buddies, as well. Yeah, so they were cheap. In this case, the product is only worth as much as somebody is willing to give. Law of supply and demand. Since this deal fell through, UA better go back to 744’s on some routes where they were replaced by 777’s!
By: A380!! - 15th February 2004 at 10:26
*******s
By: andrewm - 15th February 2004 at 10:26
Yep as remmber in AW issue ages ago they did an article on the desert and the team who own the plot charge the companies to keep them airworthy which involves towing them into a hanger, rmoving coverings and doing full check that the parts are ok (visual and i think they test APU or something).
The silver foil that is used to cover all surfaces where there are delicate parts and the windows, isnt exactly cheap in the first place. Storage, i am told by a friend in us, is cheaper than having your car stored at a secure car park!!! Its just the above charges which add up!
By: KabirT - 15th February 2004 at 06:52
Originally posted by Hand87_5
It’s hard to tell. Maybe UAL has figures which allow them to exit from Chap11 and use those planes soon.
yea but getting out og Ch. 11 is the first priority isint it.
By: Hand87_5 - 14th February 2004 at 11:09
It’s hard to tell. Maybe UAL has figures which allow them to exit from Chap11 and use those planes soon.
By: KabirT - 14th February 2004 at 06:56
UAL is acting like an idiot with this. Its already under Ch. 11 and they are not using those aircrafts. If they sell it will be better for them.
By: T5 - 13th February 2004 at 23:27
Read about this in Airliner World (March 2004) the other day. Can United really afford to haggle with their current financial situation? :confused:
By: LGKR - 13th February 2004 at 23:21
strange if nothing else – arnt UA still storing birds in the desert?? selling a few off would generate some working capital wouldnt it – with no direct impact on ops. then again; i suppose it would depend which a/c Thai wanted to purchase!? if it is 744 then i dont see any real issues. any thoughts!??
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February 13, 2004 at 10:16 pm