Bangkok Air cancels jet order

Published: 13/09/2011 at 12:00 AM

Bangkok Airways has cancelled its order for four Airbus A350 jets after suspending the launch of long-haul flights that would have been served by the new-generation wide-body aircraft.

The Airbus A350, which Bangkok Airways says it no longer needs.

The privately owned airline and the European plane maker confirmed the termination of the contract under a mutual agreement that saw Airbus not confiscate deposits for the order, which was first placed at the end of 2005.

Bangkok Airways president Puttipong Prasarttong-Osoth said yesterday that the cancellation was in line with the carrier's revised strategic plan to shelve its intercontinental start-up and prepare for domestic and regional expansion.

"Over the next five years, we would rather consolidate our domestic and regional operations, and that diminished the need for us to acquire larger aircraft," Mr Puttipong said.

He said the carrier has for decades been a key player in the regional network in Asia and will focus on expanding to more Asian destinations.

The termination of the A350 order underscores Bangkok Airways' conservative approach to expansion amid a hostile operating environment characterised by high fuel prices and fierce competition.

Furthermore, it reflects the management style of Mr Puttipong after assuming full leadership from his father, airline founder Prasert Prasarttong-Osoth, a few years ago.

Mr Puttipong, a professional commercial pilot with captain status, has made known for a while his preference for consolidating the airline's position as a leading regional operator.

He said any new aircraft that Bangkok Airways acquires in the short term will most likely be narrow-body Airbus jets _ A319s or A320s _ which are already in the airline's fleet.

Bangkok Airways was the launch customer for the A350, specifically the -800 version, and its decision to drop the order means that Airbus will transfer the early delivery slots to other buyers.

An Airbus spokesman said Bangkok Airways could transfer or sell its delivery positions to other airlines.

An industry source earlier this year said Thai Airways International had explored the possibility of taking over the A350 delivery slots from Bangkok Airways to help expedite its fleet renewal plan. No deal was struck, though.

The A350-800 that Bangkok Airways cancelled carries a 2011 list price of US$237 million. It has the shortest fuselage of all versions in the A350 family of mid-sized wide-body airliners, touted for their fuel efficiency and composite materials.

The A350-800 accommodates 270 passengers in a typical three-class cabin configuration, with a flight range of 8,500 nautical miles.

Airbus postponed development of the A350-800 earlier this year, setting back initial deliveries to mid-2016. There were 131 of the jets on order as of last month.

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