Thai dodges A340 loss due to ‘insignificant’ difference in values

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Thai Airways International is not booking a loss against three Airbus A340-500s, which were retired from its fleet in June, as there is little difference between the book and appraisal values on the aircraft.

"When comparing the net book value with the appraisal value of such aircraft, the difference is insignificant so the company did not recognise the impairment loss of such A340-500 aircraft," Thai indicates in an earnings statement. The three aircraft were manufactured in 2005. A fourth A340-500, built in 2006, is still in service, according to Flightglobal's Ascend online database.

In the first quarter of this year, Thai booked a 181.14 million baht ($5.75 million) impairment loss on two A300-600s it phased out in March.

The two A300s were decommissioned last October when the flood reached Bangkok Don Muang airport. Thai recognized the insurance compensation from the flood disaster of 342.68 million baht, which is equal to the net book value of the damaged assets.