Thai Airways International to take out loans for new aircraft - Brief Article

Airline Industry Information, Feb 10, 2000

AIRLINE INDUSTRY INFORMATION-(C)1997-2000 M2 COMMUNICATIONS LTD

Thai Airways International has indicated that it will be trying to obtain two loans worth about THB10bn to finance the acquisition of two new aircraft during 2000.

The first loan for THB6bn is expected to be sought in February for the purchase of a Boeing 747-400 aircraft, with the remaining THB4bn loan to be used to acquire an Airbus A330-300 aircraft that will be delivered in August.

The carrier has also indicated that it plans to purchase two Boeing 777-300 aircraft in November but the financing details for this have not been disclosed.

In other news, Thai Airways International has indicated that it may leave the Star Alliance and could possibly join the rival oneworld alliance of carriers, which does not have a Southeast Asian member.

A spokesperson for the Thai carrier said that financial analysis has shown that Singapore Airlines, which is expected to join the Star Alliance in 2000, cost Thai Airways International USD10m in lost revenue during 1999 because it took some of its code-sharing agreements with Deutsche Lufthansa on flights from Europe.

Furthermore, Singapore Airline`s entry in the Star Alliance would threaten Thai Airways International`s plans to make Bangkok the hub for Southeast Asia.

However, no firm decision has been made and a spokesperson for the carrier pointed out that `Singapore is our competitor, but if it joins the Star Alliance it means we`ll know how they operate, and it could be a friendly alliance.`

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