Wallop Bhukkanasut, executive vice president for the airline's Commercial Department, said yesterday the board must decide at its next meeting whether it would go ahead and buy the six aircraft from French manufacturer Airbus or cancel the purchase agreement.

Airbus has breached the agreement by delaying delivery of the six aircraft to THAI for 22 months, he said.

Wallop said in case the board still chose to buy the aircraft, it would have to consider the damages Airbus should pay for the delivery delay, in terms of cash or renting aircraft to THAI during the waiting period for the ordered aircraft.

Following the current business plan for 2006-10, THAI is seeking 14 new aircraft with an investment value of more than Bt90 billion. Of these, six are A380s ordered from Airbus worth Bt40 billion.

The remaining aircraft are two A340-600s, to be delivered at the beginning of next year, and six Boeing 777-200 ERs, one of which has already arrived, with another three to be delivered this month.

Wallop said THAI would convene a shareholders' meeting next Monday to approve its new board. The board, therefore, should speed up consideration of this matter so that it can find a way to resolve unexpected problems resulting from the delay in aircraft delivery.

He said that under the airline's long-term strategic business plan, THAI would focus on increasing international flights that had the potential to generate large revenues. The company is considering potential destinations like London, Frankfurt and New York, where it would increase flights from daily to twice a day. The plan is to lower operating costs rather than open new destinations.

Watcharapong Thongrung

 The Nation