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THAI Clarifies Sale of Airbus A340-500

September 20, 2013 Aviation No Comments Email Email

Thai Airways International Public Company Limited (THAI) provides clarification on the sale of Airbus A340-500 aircraft.  

On all matters relating to the sale of the Airbus A340-500, the Company has processed all steps accordingly which can be audited, and has regularly informed the prospective buyer of any progress.

Dr. Sorajak Kasemsuvan, THAI President, said that the Company’s four Airbus A340-500 were decommissioned from the fleet in November 2012 and were announced for sale on the Company’s website and other sites.  AvCon Worldwide submitted a proposal to purchase the A340-500 in March 2013 and proposed to buy one Airbus A340-500 for 35 million US dollars, with a request to inspect the aircraft prior to purchase.  After aircraft inspection, AvCon Worldwide reduced the proposed price as the aircraft was scheduled for heavy maintenance with two engines in an imperfect condition, but still operational, and requested a discount for other possible risks.

AvCon Worldwide’s last price offer was 23.5 milion US dollars, reduced from the initial proposed price of 35 million US dollars.  The Company’s committee responsible for considering the aircraft sale and lease, as well as engine and spare parts sale, negotiated to increase the price but AvCon Worldwide maintained the same price and requested to pay a security deposit of 2.5 million US dollars in June 2013.  The Company informed the AvCon Worldwide that acceptance of a security deposit is under the condition that the Board of Directors must grant approval of the sale based on conditions agreed upon by both parties.

If approval is not granted, the security deposit will be returned.  The committee on the sale of aircraft has proposed AvCon Worldwide’s most recent proposal to the Company’s Board of Directors, whereby the Board instructed THAI Management to reconsider the details on whether it should be sold or reenter the fleet and propose for further consideration.  The Company appointed a coordinator to inform AvCon Worldwide of the Company’s Board of Directors decision and requested AvCon Worldwide to accept the return of the 2.5 million US dollar security deposit.  Five notifications have been sent to AvCon Worldwide but to this date AvCon Worldwide has not picked up the security deposit.

The Company reaffirms that concerned staff have been appointed as a team, those being senior and middle management, to handle the sale and lease of aircraft and sale of spare parts, which is transparent and can be audited.

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