SAA to get new aircraft?

[beechbum]

The Nation
(Bangkok Independent Newspaper) – 14/03/07
THAI set to sell four aircraft

Thai Airways International (THAI) plans to sell four A340-500 aircraft to South African Airways.
A source at THAI said three of the aircraft were operating on the Bangkok-New York route and that the other one would be delivered by next month.
The source did not disclose the price details of selling the four aircraft but said it would be about the same as buying new ones.
"THAI's executive board members are expected to make a final decision about the sale today," said the source

Taken off the "other" site....thanks to Wirefly (hope you don't mind me hijacking it!!!)
Strange that we should hear via a foreign tabloid!! DJ do you have any info as to the truth in this?

[bianchi]

I have got my sincere doubts whether SAA will buy-lease-operate the A340-500,for no other reason than it's simply to expensive to operate."Break even" on the"MODERN SP"( A340-500) is in the region of 80%.
If anything, SAA needs A330-200,300 or B777-200,300 type aircraft.

Just my "3"cents worth !!!!! Take it leave it,do,don't !!!

[beechbum]

This also appears on the South Asia and Far East forum too........ummm...!!!! Interesting!

[bianchi]

That's why it is called a "Rumour network" ! But hey anything is possible !! :rolleyes: SAA was suppose to get 777 10 years ago, .......still don't see them at Johannesburg(ORT).

[beechbum]

Totally off topic.....but there were seeeeerius kick backs and scratching of backs that didn't make the 777 order happen. I think thats what happened anyway.Not many Airbus A330's available, if any on the market at the moment (pity...darn fine aircraft)...the 777's are being tossed around, but I think Airbus has a foothold at SAA , hence the A340's on offer from Thai. Could be interesting to see, like I said.
Maybe someone in the know could enlighten us................:ok:

[Romeo E.T.]

THAI set to sell four aircraft

Thai Airways International (THAI) plans to sell four A340-500 aircraft to South African Airways.


A source at THAI said three of the aircraft were operating on the Bangkok-New York route and that the other one would be delivered by next month.


The source did not disclose the price details of selling the four aircraft but said it would be about the same as buying new ones.


"THAI's executive board members are expected to make a final decision about the sale today," said the source.


The purchase of the A340-500s was made by former THAI chairman Thanong Bidaya as part of a five-year plan to expand the airline's long-haul routes, including New York.


THAI has been operating the Bangkok-New York route since 2005. However, the route has been operating on a very low load factor, due to poor demand.


The source estimated the airline had already lost up to Bt5 billion from the New York route.


The airline is considering suspending the route for a period of months. But some executives believe operating a long-haul service would help the airline increase revenues, as well as its passenger base.


Wallop Bhukkanasut, executive vice president of the airline's Commercial Department, said THAI was likely to suspend the Bangkok-New York route soon.


He said the company was also considering choosing new aircraft to replace the A340-500s.


"I have recommended using the Boeing 777-200, which could operate long-haul routes. At the moment, THAI has no such aircraft, so there are plans to use the Boeing 777-200, which consumes less energy than the A340-500, " said Wallop.


The airline has projected total revenues of Bt160 billion this fiscal year (October 2006 to September 2007). During the first five months of the accounting year ending in February, THAI's revenues increased 14 to 16 per cent year on year.


The airline expected to increase its cabin factor from 76 per cent last year to 79 to 80 per cent this year.


The airline has also adjusted downwards the fuel surcharge on some highly competitive routes, such as Bangkok-Sydney and Bangkok-Frankfurt, in order to attract more travellers.


Meanwhile, it is also planning to revise fares on low-competition routes like Bangkok-Bangalore, to entice passengers.


Found this article as a link from Airliners.net.... http://www.airliners.net/discussions/general_aviation/read.main/3305446/

[Skylion]

The claim by TG that the A 340-500s would be sold for much the same price as new ones will be local window dressing to cover their embarrassment. SAA, unless they are very poor negotiators, should be getting these aircraft for a very attractive price, in which case they make a lot of sense to an Airbus based airline. The low cost of ownership would offset the higher fuel and maintainence costs and it is a formula which others such those who have persevered with MD-80s, MD 11s, early A 340s etc have can work well. The original 747SPs were specialist aircraft sold at pretty much list price so the original buyers were stuck with both high ownership and operating costs. Second hand buyers should have paid peanuts and thus aquired 250 seats cheaply. It only takes a few minutes to calculate where the lines on the cost graph cross.