http://seattlepi.nwsource.com/business/156456_air14.html Wednesday, January 14, 2004 Aerospace Notebook: Tiny shrimp could be big problem for jet makers By JAMES WALLACE SEATTLE POST-INTELLIGENCER REPORTER
A shrimp dispute on both sides of the Atlantic could have implications for Airbus and The Boeing Co. It's a fish story that begins in Thailand, which is unhappy with the European Union's health ban on frozen Thai shrimp and prawns. In addition, government officials in Thailand are upset with what they describe as unfair trade practices by the EU because Thai shrimp are subject to import tariffs as high as 12 percent, while shrimp imports from Malaysia are taxed at 4 percent. Thai Prime Minister Thaksin Shinawatra recently warned that the country might consider switching from Airbus to Boeing when it comes time to make future aircraft purchases. In August, Thai Airways International ordered eight of the new Airbus long-range planes, the A340-600 and A340-500, for delivery beginning in 2005. Thai Airways operates a mixed fleet of Boeing and Airbus jets, but has not ordered new planes from Boeing since the purchase of 14 777s in the mid-1990s. "If they treat us unfairly, we will treat them the same way," the Thai prime minister told reporters last month in Bangkok, referring to the European Union. Even though the 2003 order for the eight Airbus jets will go ahead, the dispute with the EU could affect future jet orders from Airbus, he said. Thailand might look to Boeing, he added. But Boeing could find itself in unhappy shrimp waters with Thailand, too. American shrimpers two weeks ago filed an anti-dumping petition with the Department of Commerce, seeking to have the government impose tariffs on cheap pond-raised shrimp from overseas, including from Thailand. The Southern Shrimp Alliance, which filed the petition, claims the value of the U.S. shrimp harvest dropped by more than half between 2000 and 2002 -- from $1.25 billion to $560 million. The alliance claims that shrimp are sold for much less in the United States than in the countries where the shrimp originate. More shrimp are being exported to the United States as a result of the EU health ban. The ban was imposed after traces of a medicine that fights bacterial infections was found in farm-grown shrimp and prawns from Thailand. The traces of nitrofurans could cause cancer in humans, EU health officials have said. Thai Airways International has said it wants to be one of the top three Asian carriers by 2007. The carrier has been negotiating to buy seven used 747-400s from bankrupt United Airlines, but that deal has run into delays. If it falls through, Thailand may choose to order new jets, rather than buy used planes. But whether any future jet orders from Thailand are won by Airbus or Boeing may depend on how the trade disputes over shrimp and prawns are resolved. The Ted connection. An Everett aerospace company began shipping the first aircraft interior kits yesterday that will be used to help United Airlines start its new discount carrier Ted. Northwest Aerospace Technologies won the United contract to provide the engineering work and parts kits needed to modify 40 Airbus A320 jets that United will initially use for Ted. United's low-fare offspring, which will go head to head with Denver-based Frontier, kicks off service Feb. 12. The interior of each Airbus jet will be converted from what is now a two-class configuration (economy and first) into an all-economy configuration with 156 seats, of which 66 will be United's "economy plus" with a 36-inch pitch. The remaining 90 economy seats will have a 31-inch pitch. (Pitch is the distance between seats. The more pitch, the more legroom.) Paul Sobotta, president of Northwest Aerospace Technologies, said yesterday the interior redesign for the Ted jets involves removing one galley and one closet to make room for the economy seating forward. There are also changes to the cabin electronics and air conditioning. The Ted interior will feature a new United decor, he said. The modification work on the United A320s will be done at the carrier's maintenance facility in San Francisco. Northwest Aerospace Technologies, a privately held company with sales of $15 million in 2003, was formed in 1997 to provide engineering and technical services in support of aircraft modification programs. The company employs about 40 in Everett. Aerospace Notebook is a Wednesday feature by P-I aerospace reporter James Wallace. He can be reached at 206-448-8040 or [EMAIL PROTECTED]
