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Thursday, January 27, 2005


Thailand and the EU - who's really playing hardball?
As it turns out, the European Union seems not to have put the screws to Thailand over its purchase of the new A380 airliner.

The issue, as reported by The Scotsman newspaper, was that the EU was raising the tariff on Thai-exported prawns, a kind of large shrimp, unless Thailand agreed to buy more super-jumbo Airbus A380 planes at about a half-billion each.

But as EUBusiness now reports, The Scotsman got it wrong.

A major aircraft deal between Thailand and European consortium Airbus is likely to go ahead despite threats of a delay by the Thai government blamed on political grandstanding ahead of national elections, analysts said.
Thai premier Thaksin Shinawatra said Tuesday that national flag carrier Thai Airways International would delay signing a purchase agreement for eight Airbus aircraft, including six A380 superjumbos, while demanding that the European Union ease trade rules covering Thailand's shrimp, poultry and farm products.
The Thai cabinet had approved the 96.3 billion baht (2.4 billion dollars) deal to buy 14 aircraft for the national carrier, to be split between rival manufacturers Boeing and the European consortium Airbus, but it rejected a cash-only deal.
Analysts said, however, that the Airbus deal was on the verge of being completed and the delay threat was for the benefit of a domestic audience ahead of a Thaksin re-election bid expected in February next year.
An Airbus executove said the deal was expected to be concluded tomorrow.

So, who was messing with whom? The water is maybe a little murky, but I'm betting on EUBusiness' report over The Scotsman's. Thanks to Ralf Goergens for the tip via email.

by Donald Sensing, 1/27/2005 07:11:55 PM. Permalink |  




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