Paul Lewis/BANGKOK

THAI AIRWAYS International is discussing signing a memorandum of understanding (MoU) for up to six new Boeing 747-500/600X aircraft, but the carrier is now waiting for Government approval for its earlier fleet modernisation before committing itself.

The airline is among a group of international Asian carriers, including Cathay Pacific Airways and Singapore Airlines, now being actively pursued by Boeing to sign a MoU at September's Farnborough air show for the planned new derivatives of the 747.

According to senior Thai sources, the airline has a tentative requirement for three to four ultra-long-range Boeing 747-500Xs and two larger-capacity -600X stretch aircraft. With these variants, Boeing would overcome payload and range constraints faced by the carrier on routes to Europe and the US west coast.

Thai's 405-seat 747-400s are now being operated at maximum capacity between Bangkok and London and are subject to payload restrictions, because of prevailing winds during the winter season. It also wants a longer-range aircraft which can bypass Seoul and be flown directly to Los Angeles.

Airline officials, however, caution that Thai might not be in a position to sign a MoU with Boeing by early September. Several conditions would first need to be met before the airline could put its name to the 747-500/600X programme.

It wants more detailed information from Boeing, including guarantees on aircraft performance. Thai also needs to draw up a 747-500/600X marketing strategy to present to the airline's board of directors for consideration. The most important factor, however, is cabinet approval of a new five-year modernisation plan.

Thailand's National Economic Social Development Board is withholding approval for the 142 billion baht ($5.6 billion) programme, until Thai provides more information on planned changes to airline management and services. Thai is pushing for approval by the end of August, warning that any further delay will affect agreed deliveries.

The airline's 1996-2000 plan, announced in February, covers the purchase of 21 new aircraft, consisting of six Boeing 777-300s, two additional 747-400s, four 737-400/500s, four Airbus A330-300s and five A300-600Rs. The first of the new Pratt & Whitney PW4000-powered A300s is due for delivery in September.

The state-owned carrier needs the Government's blessing to raise 74 billion baht in new financing for the plan. The airline hopes to raise 10 billion baht through the sale of 31 surplus 747-200s, 737-200s, A300B4s, McDonnell Douglas DC-10-30s, BAe 146s and AI(R) ATR 42/72s. Much of the remainder will come from either loans or the issue of new equity.

Thai Airways International and United Airlines plan to finalise a new, wide-ranging codesharing arrangement by October, to complete a tri-carrier global alliance between the two carriers and Lufthansa. Thai wants to expand its Bangkok-Los Angeles service, with onward United connections to Atlanta, Chicago, Dallas, San Francisco and Seattle. United, in turn, will gain access to new destinations in Thailand and South-East Asia.

Source: Flight International