Thai Airways International (TG) is in the final stages of negotiating a deal with Boeing to purchase up to 100 aircraft, including a mix of firm orders, options, and purchase rights. This multi-billion dollar acquisition is nearing completion, with Airbus no longer being considered due to disputes with its engine supplier.
Thai Airways is specifically interested in around eight Boeing 787s and 15 narrowbody aircraft. The airline aims to modernize its fleet and capitalize on the high demand for travel to and from Thailand, leveraging Bangkok’s role as a transit hub.
Following downsizing and a restructuring process, Thai Airways has been leasing aircraft to increase capacity. However, before this new order, the airline currently has no commitments with either Boeing or Airbus.
Airbus lost favor with Thai Airways due to its reliance on Rolls-Royce as the sole engine manufacturer for the A350. The airline, like others, has had issues with Rolls-Royce’s pricing. Thai Airways CEO Chai Eamsiri expressed dissatisfaction with the engine maker’s pricing terms and hinted at taking his business elsewhere. Rolls-Royce’s stance on pricing also influenced British Airways’ preference for Boeing 787s over A350s.
Rolls-Royce’s refusal to provide deep discounts and the ensuing stalemate in renegotiations over an existing service agreement played a role in Thai Airways turning to Boeing for the potential B787 order.
Thai Airways’ fleet currently consists of six B777-200ERs, seventeen B777-300ERs, six B787-8s, and two B787-9s. Additionally, as a result of its merger with Thai Smile, the airline will acquire 20 A320-200s powered by International Aero Engines V2500. Thai’s existing A330-300s are powered by Rolls-Royce Trent 700 engines, while its seventeen A350-900s are powered by Trent XWB engines.
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