United rejects plane offer from Thai Air-minister

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United rejects plane offer from Thai Air-minister

BANGKOK, Dec 23 (Reuters) - Bankrupt United Airlines has rejected an offer from Thailand's national carrier Thai Airways to buy seven planes because the offer price was too low, Thailand's transport minister said on Tuesday.

Analysts said the rejected offer would open the door for other potential suitors to offer planes to Thai Airways.

"We can't buy planes from United Airlines now because they have rejected our offer," Transport Minister Suriya Jungrungreangkit told reporters on the sidelines of Thai Airways shareholders meeting.

United, the No. 2 U.S. carrier, and its parent UAL Corp , filed for the largest bankruptcy proceeding in aviation history in December 2002.

Thai Airways, 67.8 percent owned by the Thai government, had planned to spend 13.2 billion baht ($333 million) for seven Boeing planes from United Airlines for delivery in 2004 and 2005.

The purchase is part of a $1.4 billion plan to buy 17 aircraft over the five-year period to boost its fleet.

More at the Reuters / Yahoo website

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