Leases usually last 10 years, and THAI will pay for the lease on an annual basis rather than a one-time payment in the case of outright purchase. At the end of the contract, the airline will either return the aircraft to the lessor or negotiate to purchase the used aircraft at a discounted price.

"This option has been recommended by the National Economic and Social Development Board and the Ministry of Transport, for economic reasons," Apinan said.

THAI exercised the leasing option some years ago when it took delivery of seven Boeing 777s. However, under that arrangement, the airline owned the aircraft when the lease contract was finished.

Apinan said each of the eight A330-300s will cost the lessor company US$90 million (Bt3.11 billion), lower than the normal market price because the plane maker, Airbus, offered THAI the discount as compensation for delays in delivering three A380 super-jumbos.

THAI needs a total of 48 new aircraft over the next 10 years to replace old aircraft.

Meanwhile, the national carrier is holding a meeting in Pattaya this month to set its commercial and sales strategies for 2008.

Executive vice president of its commercial department, Wallop Bhukkanasut, said it was pertinent in the present competitive market for the department - and the airline - to make continuous adjustments and come up with new strategic developments in order to remain competitive, including being on the alert for crises around the world.

The THAI staff will hear from Association of Asia-Pacific Airlines director-general Andrew Herdman, Malaysian Airlines managing director Idris Jala and Airline Business Group Asia-Pacific vice president Damian Hickey. Managers and staff of the airline's sales offices in Thailand and overseas will meet today and tomorrow.

In previous meetings, the company has made various product- and service-related developments.

Suchat Sritama, The Nation