LIFE AFTER SQ006 - Orient Aviation

N E W SRegional round-upTHAI “will stay”in the hands of theThais, says governmentPolitics, it appears, have won out in Thailand with the new government promising a U-turn on the proposed sale of a 10%stake in Thai Airways International (THAI) to aforeign carrier. “In my opinion Thai Airways doesn’tneed a foreign partner. We don’t need their technology,while on the marketing part, we have alreadyjoined the Star Alliance,” said the government’spermanent secretary for finance and THAI director,Somchainuk Engtrakul.The former government was planning to cut itsstake from 93% to 70% this year, issuing new sharesto domestic investors and selling 10% to a strategicairline investor. The move was first mooted threeyears ago, but has met with one delay after another.Lufthansa, Qantas Airways, Singapore Airlines, BritishAirways, United Airlines and Air France, havebeen among those to express interest, but morethan one has lost patience over time.Engtrakul’s comments followed an announcementby the newly appointed finance minister, SomkidJatusripitak, that shares of 59 state enterprisesundergoing privatisation will be offered to the Thaipublic instead of selling to foreign investors.THAI chairman, Srisook Chandrangsu, offered aslightly more optimistic view when he said recently:“On the plan to sell shares to a strategic partner, weare still keeping it ... but it is not necessary to sellshares only to an airline. Selling shares to anotherairline may not be positive for our share price.”The new Thai prime minister, Thaksin Shinawatra,was vague when asked about the plansfor THAI’s future. He said there would have to bea review to be sure the share diversification wasthe right move.Analysts have expressed disappointment thatany hope of THAI having a foreign airline investornow looks slim along with the chance of thecarrier improving its efficiency. It now seems thenegative influence of the military and governmentofficials who make up most of the THAI board, willcontinue.SIA orders B777sto replace A310-300sSingapore Airlines (SIA) has ordered 20 Boeing777-200 aircraft, 10 on firm order with 10 options ina deal valued at US$4 billion. The aircraft will replaceSIA’s fleet of 13 A310-300s.SIA previously ordered 61 B777s in 1995 aspart of a 77 jet order. The remaining 16 were forits leasing subsidiary Singapore Aircraft LeasingThai Airways International: the new government is unlikely to sell a 10% stake to a foreignairlineEnterprise (SALE).With the latest order, SIA will have 81 B777s inoperation, on order or on option. The planes willbe powered by Rolls-Royce 892 engines and will bedelivered between 2003 and 2009.Said SIA’s deputy chairman and chief executive,Dr Cheong Choong Kong: “In terms of capacity, theB777 is a larger aircraft than the A310 and thereforenot a direct replacement in terms of size, but itoffers us the flexibility to use the aircraft on boththe shorter-haul services currently operated by theA310, as well as the longer sectors.Meanwhile Rolls-Royce has announced thedevelopment of the latest two members of its Trentfamily, the 900 for the Airbus A380 family and the600 for the Boeing 747X and the Longer Range767-400ER jet. The UK Government is investing £250million (US$362.5 million) in the project. The Trent900 has been selected by Singapore Airlines, VirginAtlantic and International Lease Finance Corporationfor their A380s.Ansett sale to SIA?Forget it, say bossesAir New Zealand chief executive Gary Toomeyhas dismissed reports the airline will sell part ofwholly-owned subsidiary Ansett Australia to SingaporeAirlines to raise money for the purchase ofnew aircraft. “I don’t think there’s any credibility inwhat’s being said. We don’t have any knowledgeof it, so you can scratch it completely from ourperspective,” he said. SIA boss Dr Cheong ChoongKong also told Orient Aviation that there was notruth in the reports.In fact Toomey has set out his early goals forAnsett. He plans to upgrade the fleet, boost AnsettInternational’s services to high-yield destinations likeLos Angeles and Tokyo and deepen the company’srelationship with 25% shareholder SIA. An Ansettre-launch is expected later this year.Qantas makeschoice of enginesQantas Airways has made its decision on enginesfor 31 new jets to be delivered in the next 10years. General Electric will supply CF6-80E1 enginesfor seven Airbus A330-200s and six A330-300s andCF6-80C2 engines for six Boeing 747-400 Longer-Range aircraft. Rolls-Royce will supply Trent 900engines for 12 Airbus A380 twin-deck aircraft.... also tipped to takestake in PNG carrierThe Papua New Guinea Government (PNG) hasannounced that 49% of its ailing flag Air Niugini willbe available to foreign interests in a privatisationplan which should see the offshore stake sold byApril. Seven groups from PNG, Europe and NorthAmerica have lodged expressions of interests tobuy into the airline. They have not been namedbut it is known most involve non-airline investors.However, Qantas Airways has submitted an expressionof interest and is now regarded as favourite towin the stake.Hong Kong to breakDeadlock with U.S.?Hong Kong held informal talks with officials ofthe U.S. Department of Transportation in Februaryon a long-standing dispute about expanding cargoand passenger rights. The U.S. accuses Hong Kongof refusing to open its skies as other air authorities12 | Orient Aviation | March 01