THAI will not cancel A380 orders
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Thai Airways International (THAI) will not cancel its order for six Airbus A380s, despite continued efforts to cut costs, according to a Bangkok Post report. THAI has earlier sought to terminate the order, or change it to include A350s, however recent talks with the European planemaker have ruled out any such moves. Cancellation of the order would reportedly lead to THAI incurring as much as US$700 million in penalty costs - US$300 million in payment for airframe and US$400 million for contracts already committed.
“The best option available for us is to delay taking delivery of those A380s,” THAI’s Chairman, Wallop Bhukkanasut, was reported saying. “Several contracts involved in the A380s are restricted with absolutely no room for change.” Bhukkanasut added that any resulting legal battle with Airbus would have a negative impact on the image of THAI and Thailand.
THAI will now postpone the delivery of its first three A380s until 2012, with the remaining three arriving a year later. The airline is seeking to cut costs after posting a THB21.3 billion (US$634 million) net loss in 2008.
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