Thai Airways, the national airline of Thailand, signed a major leasing agreement with Dublin-based SMBC Aviation Capital on February 5, 2025. The agreement includes eight brand-new Airbus A321neo aircraft, expected to be delivered in 2026 and 2027. This deal is a further step in the airline's extensive modernization and expansion plans, which have been pursuing a comprehensive restructuring and realignment of its fleet and corporate structure since the pandemic-related crisis four years ago.
The Airbus A321neo will be part of a larger portfolio of aircraft that SMBC Aviation Capital has ordered from Airbus. According to ch-aviation, the lessor's order book includes 321 A19neo, 321 A27-321NXs and four A200-321NX(LR) aircraft in addition to the eight A200neo. The agreement with Thai Airways is further evidence of the growing confidence in the A321neo, an aircraft that is characterized by high efficiency and performance.
Thai Airways' fleet strategy: Focus on sustainability and modernization
Thai Airways' decision to lease eight Airbus A321neo aircraft comes at a time when the airline is committed to modernizing its fleet as part of a comprehensive strategy to stabilize and renew its fleet over the long term. Thai Airways continues to suffer from the financial impact of the COVID-19 pandemic, which led to the airline filing for bankruptcy protection in 2020. However, the airline has since undergone a thorough restructuring to improve its financial position and put operations on a solid footing.
The Airbus A321neo is known for its high efficiency, which enables a significant reduction in fuel consumption and CO2 emissions compared to older aircraft models. Thai Airways hopes that the use of these aircraft will not only increase operational efficiency but also improve the customer experience. The A321neo offers larger cabins and state-of-the-art equipment, which offers passengers more comfort and a pleasant travel experience.
“The Airbus A321neo will not only increase Thai Airways’ operational efficiency, but also enhance the customer experience with more comfort and advanced features,” said Conor Stafford, Head of Airline Marketing at SMBC Aviation Capital, adding that the company is delighted to support Thai Airways in modernising its fleet.
The role of the leasing market and the importance of SMBC Aviation Capital
SMBC Aviation Capital is a major player in the international aircraft leasing market, regularly supplying aircraft to large and mid-sized airlines worldwide. The partnership with Thai Airways for the provision of A321neo demonstrates the increasing role of leasing companies in modernising aircraft fleets, especially in times of economic uncertainty. The leasing market offers airlines such as Thai Airways a flexible way to acquire modern aircraft without having to bear the high acquisition costs of new aircraft. This strategy allows the airline to quickly expand and modernise its fleet without having to make large capital investments.
The A321neo will significantly strengthen Thai Airways' fleet, which currently comprises 79 aircraft, including the Airbus A350-900 and Boeing 777-300ER, which make up a large portion of the fleet. The move towards an even more diverse fleet portfolio demonstrates Thai Airways' commitment to maintaining its position as a leading airline in Southeast Asia and expanding its service on a global scale.
Thai Airways' economic recovery after the pandemic
Thai Airways suffered major losses in 2020 and 2021 due to drastic declines in air traffic as a result of the COVID-19 pandemic. In order to maintain operations, the company filed for bankruptcy protection in 2020. Since then, the airline has undergone a comprehensive restructuring process that included both operational and strategic adjustments. The order for Airbus A321neo and other modern aircraft is part of this effort to modernize the fleet and increase competitiveness in international markets.
The airline relies on a mix of Boeing and Airbus aircraft to efficiently expand its routes and capacity. In February 2024, Thai Airways also announced an order for 45 Boeing 787-9 aircraft to further strengthen its long-haul business. In addition, there were agreements with the leasing company AerCap to lease ten A321neo, which will increase the airline's flexibility and capacity on medium-haul routes.
The collaboration with SMBC Aviation Capital represents a significant step in Thai Airways' long-term fleet strategy. The expansion with modern and efficient aircraft such as the A321neo will not only increase efficiency but also help to strengthen passenger satisfaction and brand value. Thai Airways is well on its way to recovering from the challenges of the pandemic and growing again as a leading airline in the region.
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