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Joined: Sat Sep 04, 2004 3:35 am

Thai Airways Tries To Explain Discount

Sat Sep 04, 2004 5:42 am

This is a piece from SpeedNews I received this morning.

I think something got lost in translation!


*********** DISCOUNTED DEAL ***************
Thai Airways International this week issued a statement with reference to its order for five A340-600s placed in August 2003, as it wants to clarify why its second aircraft will cost more than the others.
It says that Airbus Industries granted THAI a concession to be used toward cost reduction on each aircraft at an equivalent amount, whereby concessions per each aircraft would be received upon each aircraft delivery. The term of some concessions may vary from other concessions, such as Airbus having granted a complementary “A340-600 Special Introductory Credit” for introducing the aircraft type into THAI’s fleet. Airbus specified that the concessions for THAI’s first and second A340-600 aircraft deliveries would be effective upon the delivery of the airline’s first A340-600 aircraft.
Therefore, the concessions of the second aircraft were combined with first aircraft, which resulted in the normal price of the second aircraft that was higher than the first aircraft purchased.
Thai is to take delivery of the first aircraft in June 2005, followed by one each in July 2005, October 2005, November 2005 and December 2005.

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