Thai Airways Leases Eight New A321neo Aircraft

‍DALLAS — Thai Airways (TG) signed a lease contract with SMBC Aviation Capital for eight brand-new Airbus A321neo jets.

The deal, announced on February 5, 2025, is of significant importance under TG's fleet renewal policy and narrow-body expansion as the airline continues to spread its wings across the regional network. The new jets are scheduled for delivery in 2026 and 2027.

The narrow-body aircraft are part of the Dublin lesser's order book with Airbus and include 19 A321neo, 27 A321-200NX, and four A321-200NX(LR).

The A321neo will directly impact TG's operations efficiency, increase passenger comfort, and provide innovative features for a more sustainable aviation industry. We are glad to support TG's fleet modernization journey and look forward to a long-term collaboration with Conor Stafford, Head of Airline Marketing at SMBC Aviation Capital.

With this addition, the A321neo will support the regional network and complement the existing TG operations, adapting to the dynamic demands placed on it. Narrow-body aircraft will underpin TG's recovery and expansion plans as the company further emphasizes operational excellence and environmental sustainability.

TG has initiated an ambitious process of upgrading its fleet to improve operational efficiency and sustainability. Over the last year, the airline has launched several initiatives to meet these objectives.

Thai's Fleet Upgrade

On February 20, 2024, the airline ordered 45 Boeing 787-9 aircraft at the Singapore Airshow, signaling it was committed to long-term growth. The airline revealed just the next day its partnership with AerCap in terms of leasing a mix of Boeing and Airbus aircraft, including the additional 10 A321neo. 

Such deals form part of the firm's comprehensive airline fleet replacement policy, which involves replacing older leased aircraft nearing expiration.

Airlines are increasingly choosing NEO (New Engine Option) aircraft, such as the Airbus A320neo family aircraft because they are significantly more fuel efficient than their predecessors. This means lower operating costs, a smaller environmental footprint, and greater range without carrying fewer passengers. 

NEO aircraft are generally fitted with better cabins that contribute to passenger comfort but remain within the limits of existing airport infrastructure, which helps airlines upgrade with new technology without much hassle.

Thai has  done well since filing for bankruptcy protection in 2020. The airline has implemented a solid restructuring plan in the last four years to stabilize its finances and return to profitability. Its fleet renewal initiative further demonstrates its progress and long-term vision.

SMBC Aviation Capital will be a premier partner for carriers keen to replace their older fleets with next-generation aircraft. Since efficient and eco-friendly air travel continues to enjoy increasing demand, the A321neo would enhance TG's connectivity throughout the regional network. 

Founded in 1960, TG is one of the founding members of the Star Alliance. It currently flies to 64 destinations with a fleet of 79 aircraft, including the Airbus A350-900 and Boeing 777-300ER as their most significant types.

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