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(15/02/24)
 Thai Airways says that it has reached an agreement with
Boeing and GE Aerospace to acquire mid and long range wide-body
aircraft and engines.

The agreement consists of a firm order for 45
aircraft, with options for an as yet undisclosed number of
additional aircraft. Deliveries are expected to begin from 2027.

The Thai flag carrier has said that it will reveal
further details of the aircraft and engine orders at the Singapore
Airshow 2024 next week.

Thai’s market share has decreased substantially in
the past decade, especially at its Suvarnabhumi Airport (BKK) hub
near Bangkok, from 51.3% in 2013 to 27% in 2023. The decrease is
partly due to the limitations of the airline’s fleet size and
aircraft efficiency.

Thai Airways aircraft at BKK. Picture by Steven Howard of TravelNewsAsia.com

The new aircraft will gradually replace expiring
leased and aging aircraft, enabling the airline to grow more
sustainably, profitably and regain market share.

Thai’s fleet consisted of 100 aircraft in 2013 and
only 64 operating aircraft by the end of 2022. That 36% decrease
in aircraft is the result of decommissioning and discontinuing the
leases of aging and less-fuel efficient aircraft during the
carrier’s rehabilitation process.

In response to increasing travel demand, Thai
Airways bolstered its fleet by acquiring additional aircraft
through operating leases in 2022–2023.

Since Q2 2023, the airline has secured 21
additional wide-body aircraft, primarily Airbus A350s equipped
with Rolls-Royce Trent XWB engines. Thai also plans to
introduce Airbus A321neo aircraft into its fleet starting in Q4
2025.

This growth strategy aims to accommodate
increasing demand, enhance the overall service quality for
passengers and crew, and reduce maintenance and other costs.

Thai’s fleet consisted of 70 aircraft in 2023 and
will increase to 79 this year, with a total of 90 aircraft
expected by 2025.

Considering the number of aircraft scheduled for
decommission and lease expiry, the aircraft order backlog,
aircraft production capability, and the significantly increasing
demand of aircraft in the aviation industry at the moment, Thai’s fleet, without
new aircraft acquisition, would decrease to only 51 aircraft in
2033, a 49% decrease from its size in 2013. Such a small number of
aircraft would not generate the revenue needed to repay debts to
creditors. However, with the acquisition of 45 new Boeing planes,
Thai’s revenue generating fleet will reach 96 aircraft, which is
still less than in 2013.

The national carrier has said that it remains open
to considering various funding models including operating and
financial lease and that the acquisition will not affect its
ability to repay debts to creditors.

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