UPDATE 1-Thai Air in talks with Airbus, Boeing for 30 planes

By Manunphattr Dhanananphorn

BANGKOK, Aug 20 (BestGrowthStock) – Thai Airways is negotiating
with both Boeing Co (BA.N: ) and Airbus for a possible record
order of 30 aircraft, a Thai Airways executive said on Friday,
deepening speculation over the potential $9 billion purchase.

Airbus, a unit of European aerospace and defence group EADS
(EAD.PA: ), has proposed A350 wide-body jets while Boeing has
proposed its 787 Dreamliner, said the senior executive, who
declined to be identified because the negotiations were

“We have to use more than 30 aircraft and we have asked
Boeing and Airbus to propose details about their planes,” he
told Reuters, adding that the A350s could be used for routes
require high cargo and the 787s could be used on low-cargo

The orders, which would need delivered between 2015-2020,
coincide with intensifying competition in Asia’s skies.

Hong Kong-based Cathay Pacific (0293.HK: ) said this month it
had placed orders for 30 Airbus aircraft at a catalogue price
amounting to $7.8 billion and intends to exercise existing
rights to buy six Boeing 777-300ER jets.

Thai Airways has already firmed up a previously announced
commitment to buy seven Airbus A330-300 wide-bodied commercial
jets, worth around $1.5 billion. Now

The Thai Airways executive noted the A350 had not yet
entered production while the 787 could be delivered in 2016,
and that the state-controlled flag carrier was weighing up how
each aircraft would fit with the airline’s strategic and
marketing plans.

“Thai Air management has to carefully consider the plane
order and propose the plan to cabinet for approval,” he said
adding Thai Airways should be able to place the order by the
end of this year.

Thai Airways, which plans to raise 15 billion baht ($475
million) via a share issue, plans to launch roadshows from
Sept. 4 to promote the share sales in the United States,
Europe, Hong Kong and Singapore, the exeuctive said.

The offer price is expected to be conclued through a
book-building exercise by Sept. 16 with a subscription period
from Sept 17-22. The new shares are expected to be traded on
Oct. 4, according to documents approved by the airline’s
(Editing by Jason Szep)

UPDATE 1-Thai Air in talks with Airbus, Boeing for 30 planes