Airbus business in Thailand unchanged

"Bangkok Airways' order, to date, is confirmed for delivery in 2015. As for Thai AirAsia, it goes from strength to strength," said Kiran Rao, Airbus executive vice president for sales, marketing and customers affairs.

"There's no problem. Thai Airways has been our customer for 32 years. The delayed delivery of A380s to Thai Airways is mutually agreed."

Airbus first rescheduled delivery of the A380s for three months, but THAI's board recently delayed delivery of the jets for two years to August 2012 due to tight liquidity.

Rao admitted that THAI was not the only airline in the world that had delayed delivery in the light of declining revenue, but he said there were also many others ready to take aircraft earlier than scheduled.

"We keep the orders in balance. Hence, the production remains stable. People still want to travel. They want to enjoy the world and see their families, while businessmen have to travel if they want to maintain deals and relationships with clients," he said.

Rao is optimistic that travel demand will pick up when the global economy recovers. The recovery will further prove the forecast that air traffic will double every 15-20 years, he said.

He added that A380 orders kept coming in, thanks mainly to the satisfactory reaction of passengers who had flown the 17 super-jumbo jets that have been delivered to three airlines - Singapore Airlines, Qantas and Emirates.

As the world's largest jet, with seating for up to 525, it also gives flexibility for airlines that have difficulties in finding flight slots into Europe, he said.

According to Airbus, A380 orders stand at 200, but the company can deliver only four per month. Ordering now means an airline has to wait until 2013 for delivery.

Having delivered the 1,000th aircraft from the A330/A340 family - an A330-300 - to THAI last week, Airbus is hoping for more orders from the national carrier.

Taking delivery of three planes so far this year, THAI is looking to receive five more by February. All will be fitted with modern in-flight entertainment in all 299 business and economy seats. The planes will be used to boost regional routes, mainly to China and Japan.

THAI has mandated BNP Paribas and Calyon for the US$600-million (Bt20.42-billion) export-credit agency financing of six A330s. The 12-year-term loan is for about 80 per cent of the aircraft's value.

Representatives of both banks admitted that airlines around the world were in difficult times but said they had agreed to help THAI due to the company's state-enterprise status and the management team's hard work.

Also, they perceive that the decline in the aviation industry is cyclical, adding that aircraft-financing demand remains high while many financing institutions have recently exited the market.

At present, THAI operates about 90 aircraft, including 41 Airbus A300s, A330s and A340s.

Meanwhile, Bangkok Airways has placed orders for seven A350 XWBs, with delivery scheduled from 2015. Airbus's new model, with up to 250 seats, will enter global service in 2013.

Thailand is considered a key Asia-Pacific market for Airbus. More than 60 operators in the region - both full-service and low-cost - operate with its aircraft, or 25 per cent of the Airbus fleet across the globe.

Asia-Pacific carriers have also ordered 1,187 aircraft, which represents 34 per cent of the company's backlog.