Dow Jones Business News
Wednesday February 26, 7:39 am ET
BANGKOK (Dow Jones)--Thailand''s flag carrier Thai Airways International PCL''s (H.TAI) board Wednesday approved a plan to purchase seven Boeing 747-400s from United Airlines.
The purchase of these recently built planes, instead of buying new ones, will help Thai Airways save about 30 billion baht ($1=THB42.75), the airline''s Chairman Thanong Bidaya said after a board meeting.
The United Airlines planes will cost less than US$50 million a unit, compared with a normal price at around $150 million, he added.
The seven Boeing 747-400 planes, with 347 seats each, have been in operation for less than five years.
Thai Airways plans to spend about THB500,000 to upgrade each of the seven planes. The upgrade will take around 30 days for completion, Thanong said.
A five-year development plan recently adopted by Thai Airways, that requires the acquisition of nine new aircraft, will be amended as the company has decided to purchase the United Airline planes, Thanong said.
The carrier''s board also approved a plan to seek short-term financing of around US$142.2 million until the company finds other long-term sourced of funds.
The funds will be used to refinance a Samurai Bond, which will come due March 27.
Under the plan, the Finance Ministry, its major shareholder, will issue Euro Commercial Paper to raise funds for Thai Airways.
Wednesday February 26, 7:39 am ET
BANGKOK (Dow Jones)--Thailand''s flag carrier Thai Airways International PCL''s (H.TAI) board Wednesday approved a plan to purchase seven Boeing 747-400s from United Airlines.
The purchase of these recently built planes, instead of buying new ones, will help Thai Airways save about 30 billion baht ($1=THB42.75), the airline''s Chairman Thanong Bidaya said after a board meeting.
The United Airlines planes will cost less than US$50 million a unit, compared with a normal price at around $150 million, he added.
The seven Boeing 747-400 planes, with 347 seats each, have been in operation for less than five years.
Thai Airways plans to spend about THB500,000 to upgrade each of the seven planes. The upgrade will take around 30 days for completion, Thanong said.
A five-year development plan recently adopted by Thai Airways, that requires the acquisition of nine new aircraft, will be amended as the company has decided to purchase the United Airline planes, Thanong said.
The carrier''s board also approved a plan to seek short-term financing of around US$142.2 million until the company finds other long-term sourced of funds.
The funds will be used to refinance a Samurai Bond, which will come due March 27.
Under the plan, the Finance Ministry, its major shareholder, will issue Euro Commercial Paper to raise funds for Thai Airways.
