THAI urged to come up with more options
Play
Thai Airways International chairman Ampon Kittiampon is calling on the management to come up with more options on handling the airline's four Airbus A340-500 aircraft for the board's consideration.
He explained that the management currently only had one option – selling the newest aircraft for US$23.5 million (Bt745 million), which is just a third of its $67.07 million book value. He said the management could either negotiate with prospective buyers or come up with new options to make use of the aircraft. Or it could come up with ways to prevent THAI from incurring big losses from the sale.
“The board’s opinion is not split regarding this sale, but there must be a way of explaining why we need to sell it at more than $40 million below book value. The board needs to explain to shareholders why it is incurring such a huge loss,” he said.
THAI’s board will convene on Thursday and the sale of the long-haul aircraft is not on the agenda.
A source from AvCon Worldwide, a consultancy firm that proposed the purchase of a plane for Saudi Prince Faisal Al Saud, said the company was ready to purchase all four aircraft. It has proposed $18 million to $20 million per aircraft for the other three. The source said the price offered was reasonable as all the planes needed to be overhauled and some equipment had to be replaced. Holding them further would cost THAI more, he said.
