We often hear stories of aircraft being impounded across the world after airlines have failed to keep up payments to airport operators, air service providers, financiers or lessors. Therefore, news that a Boeing 737 was impounded at Munich Airport in Germany last week would not be a big surprise. However, when it emerged that the aircraft actually belonged to a Thai crown prince it brought a very interesting twist to events.
The aircraft in question was a 1995-build Boeing 737-400 that was originally delivered to the Royal Thai Air Force in February 1995 and which was transferred to the Thai Government in October 2005. It is regularly used by crown prince Maha Vajiralongkorn and had arrived at Munich Airport last week and was impounded by administrators Schneider, Geiwitz & Partner on July 12 in a long-running dispute with the receivers of an insolvent German construction firm who say they are owed almost €40 million ($57 million) by the Thai Government.
The quarrel relates to the building of a 16 mile (26km) motorway between Bangkok and its former airport gateway, Don Muang, over 20 years ago. The original contractor was acquired by construction company Walter Bau in 2001, which subsequently claimed damages in 2007, after becoming insolvent two years earlier, due to "numerous breaches of contract by the Thai government".
Earlier this week a German court ordered the release of the aircraft after it received an assurance under oath from the Thai Department of Civil Aviation that the plane actually belonged to Maha Vajiralongkorn and not the Thai state, with a transfer of ownership registration certificate from 2007 being offered as proof. However, as these documents only legally confirmed a “presumption of ownership,” according to the deputy chief justice of the court, Christoph Fellner, a significant bank guarantee of €20 million was also required.
As we uploaded this story it emerged that that Thai Government was unwilling to fund the multi-million dollar bank guarantee to secure the release of the Thai crown prince's jet, and it remained parked at Munich Airport. The ordeal is now threatening to impact diplomatic ties between Germany and Thailand.
"We are confident that the aircraft belongs to the crown prince. He is not involved with this case and the documents are very solid, so there is no need to pay the guarantee of €20 million," said Thai Foreign Minister, Kasit Piromya, after a visit to Berlin to resolve the problem. Speaking to reporters after his return to Bangkok he confirmed that the court was in possession of documents submitted by the Thai government and would make a final ruling on ownership in August. "The plane will be parked in the German airport until the case is resolved," he added.
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