THAI Press Release

THAI Confirms Status in the Star Alliance

Bangkok, 22 February 2000 -- Following a meeting between the President of Thai Airways International Public Company Limited, Mr. Thamnoon Wanglee, and Chief Executive Officers of Singapore Airlines and Lufthansa, Dr.Cheong Choong Kong and Mr. Jurgen Weber, in Singapore, to discuss Star Alliance issues, THAI’s Public Relations Office today confirms that the recent news concerning the possibility of THAI leaving the Star Alliance is incorrect.

THAI’s President, Thamnoon Wanglee, has never said that the airline wanted to leave the alliance and confirms that THAI would remain in the alliance.


Back to index...


THAI Announces 1st Quarter Operating Results for Fiscal Year 1999/2000

Thai Airways International Public Company Limited reported its operating results for the first quarter of fiscal year 1999/2000 (October – December 1999) which ended 31 December 1999.

The company's total revenue was 30, 911 million baht, which included the operating revenue of 30,229 million baht. Total revenue increased by 1,368 million baht or 4.6 percent compared to the same period last year, October – December 1998.

Operating profit was 4,451 million baht, a decrease of 51 million baht or 1.13 percent compared to the period October – December 1998 due to high fuel costs, resulting from high operating costs compared to last year.

THAI's profit before tax totaled 10,397 million baht, with a net profit of 7,658 million baht. The net profit increased 943 million baht or 14.04 percent.

Earnings per share was at 5.47 baht but when compared with the same period of 1998/99 the gain was 0.67 baht. The loss from foreign exchange was 2,962 million baht when compared to the period October – December 1998.


Back to index...


Star Alliance carriers move under one roof in Rio

LONDON, 16 February 2000 -- Star Alliance – the airline network for Earth – continued its efforts to provide its customers with seamless travel today at Rio de Janeiro International Airport Galeão – Antonio Carlos Jobim when VARIG Brazilian Airlines and United Airlines moved out of their separate quarters in terminal 1 into joint facilities at terminal 2, with Star Alliance partner Lufthansa German Airlines to follow shortly.

The three carriers will be co-located in the check-in area and share new lounge facilities in the terminal. Their aircraft will be parked close together making transfers easy and convenient for passengers, including those of Star Alliance partners codesharing with VARIG, United and Lufthansa to and from Rio.

The First and Business Class lounges shared by the three partners at Rio’s international airport offer passengers a quiet retreat where they can enjoy refreshments and snacks, read or relax in the piano bar, or take a shower. There is also a work area complete with fax and copying machines as well as internet access and sockets for notebooks. Pressing and shoe-shining service is also available for those who would like to freshen up after a long flight. The First Class lounge encompasses an area of 300 square meters. The Business Class lounge occupies 841 square meters, including a reception area and the piano bar. In addition, the Star Alliance partners offer a 200-square meter VIP lounge for domestic passengers.

„The integration of Star Alliance carriers in Rio is another example of what we are working to achieve at the main hubs of our global network,“ said Per Stendebakken, Star Alliance Vice President and head of product and service development within the alliance. „The benefits are obvious: the airline facilities become more visible and are easier for the passengers to find, walking distances are shortened and resources can be spent more effectively. By moving together at airports we create a single point of contact for our passengers. It also helps improving our customers‘ travel experience by speeding up the transfer of passengers and their baggage,“ Stendebakken said.

In addition to its main hubs, Star Alliance has identified a number of other strategic airports around the world where the „move-under-one-roof“ concept will be deployed. It has already been implemented at airports such as Frankfurt, Copenhagen, Shanghai and Beijing. Projects to facilitate transfer are underway at London-Heathrow, as well as in Miami, Los Angeles and at Paris‘ Charles de Gaulle airport.

Star Alliance was established in May 1997. It brings together some of the world’s leading airlines in a partnership designed to provide customers the benefits of global reach and seamless travel. Current members of Star Alliance are ANA – All Nippon Airways, Air Canada, Air New Zealand, Ansett Australia, Lufthansa German Airlines, SAS – Scandinavian Airlines, Thai Airways International, United Airlines and VARIG Brazilian Airlines. The Austrian Airlines Group will become a member in March, to be followed by Singapore Airlines in April and, somewhat later, Mexicana Airlines and British Midland Airways.


Back to index...


Statement Clarifying THAI's Position in Star Alliance

BANGKOK, 9 February 2000 -- Today at Thai Airways International Public Company Limited’s Head Office, THAI held its Finance and Accounting Meeting “FACTS 2000”, where Mr. Thamnoon Wanglee, THAI’s President, made the following comments concerning the airline’s position in Star Alliance.

Mr. Wanglee spoke to finance and accounting managers and staff, who were participating in the FACTS 2000 seminar an internal staff meeting. Responding to inquiry about THAI’s position as a member in Star Alliance, Mr. Wanglee said, “As THAI heads further in the process of privatization, we have been advised by our financial consultants to consider the impact of Star Alliance membership prior to THAI’s Privatization Road Show. One aspect under consideration is the impact that Singapore Airlines’ membership in Star Alliance has had upon THAI. Secondly, THAI’s financial consultants have advised the airline to assess the advantages and disadvantages of THAI’s membership in Star Alliance. THAI has requested that the financial consultants study the long-term effects of THAI being a member in Star Alliance. In addition, THAI’s financial consultants have requested that THAI consider the possible advantages that could arise should THAI choose to join another alliance grouping, especially when the airline is in the midst of privatizing and strategic partners as well as a public share offering are being sought.”

THAI entered Star Alliance as a member airline and founding member on 14 May 1997, when the alliance partnership.


Back to index...


THAI Organizes Special Flights for Muslim Pilgrims

Thai Airways International Public Company Limited will organize 10 special flights for Thai-Muslim pilgrims traveling to Mecca to participate in the Haj religious ceremony in Saudi Arabia.

Mr. Suthep Suebsantiwongse, THAI’s Vice President, Revenue Planning and Management, said that, “In order to accommodate the rising number of Thai-Muslim travelers who plan to attend the Haj religious ceremony in Mecca, THAI will be arranging 10 special flights departing from Hat Yai and Phuket, on the return routes Hat Yai-Muscat-Jeddah and Phuket-Muscat-Jeddah, using Airbus A300-600 aircraft.”

THAI’s special flights have been arranged as follows:

Hat Yai-Muscat-Jeddah

  • Depart from Hat Yai : TG 8624 on 20th, 22nd, 24th, 26th, 28th February, and 3rd, 5th, 7th, 9th March 2000
  • Depart from Jeddah: TG 8627 on 26th, 28th, 30th March, and 1st, 3rd, 7th, 11th, 13th, April 2000

Phuket-Muscat-Jeddah

  • Depart from Phuket: TG 8628 on 1st March, 2000
  • Depart from Jeddah: TG 8631 on 5th April, 2000

The special flights are expected to accommodate approximately 2,500 passengers. THAI has also made arrangements for special ground handling and inflight services to ensure smooth journeys for all passengers. In addition, ground staff have been specially assigned to coordinate with station services personnel during the Muslim pilgrimage period. Special Halal meals will be served on board and compact-sized medical kits will be available on board THAI flights. THAI cabin attendants knowledgeable about of health and medical care have been assigned to attend to elderly passengers.

For more information and bookings, please contact THAI’s Ticketing and Reservations Office at Tel: 628-2000, 24 hours a day.


Back to index...


THAI Announces Situation of An Emergency Landing of Flight TG930 at Budapest Airport

Bangkok, 7 February 2000 --- The Public Relations Office of Thai Airways International Public Company Limited announced the situation of an emergency landing of flight TG930 at Budapest Airport, Hungary.

At 00:30 am, on 6 February 2000, the pilot of THAI’s Boeing B747-400 aircraft flight TG930, en route Bangkok –Paris, carrying a total of 337 passengers, noticed a malfunction of the cabin pressurization system while cruising at an altitude of 39,000 feet above Hungary. Following flight procedures and to ensure maximum safety of all passengers, the pilot decided to descend to 10,000 feet and immediately contacted the ground control of the nearest airport and landed the aircraft safely at Budapest Airport, in Hungary.

As there is no on-line office of THAI in Budapest, THAI contacted its Star Alliance partner, Lufthansa, whose office is located at the airport, to arrange a special charter flight to bring all passengers from Budapest airport to Charles De Gaul international airport in Paris. All passengers have now safely arrived in Paris.

THAI has already conducted a thorough check-ups and maintenance service of the B747-400 aircraft flight TG930, which is now ready to resume its normal operations.


Back to index...


US EX-IM Bank and ECGD Sign Airplane Loans for Thailand

LONDON, 4 February 2000 - On 4 February 2000 in London, England, Export-Import Bank of the United States (Ex-Im Bank) and Export Credits Guarantee Department of the United Kingdom (ECGD) signed loan guarantees for Thailand’s national carrier, Thai Airways International Public Company Limited (THAI), on a 12-year, US$537 million export credit facility from Barclays Bank PLC for five previously ordered Boeing airplanes – one 747-400 and four 777-300s.

This financing arrangement is the largest of its kind for Thailand, an indication that the country is well on the road to recovery from the recent Asian economic slump and is an expression of confidence in the economic stability of Thailand. The current national economic situation has improved dramatically compared to the financial crisis that began more than two years ago.

This arrangement would not have been possible without the strong support and cooperation from the Thai government under the leadership of Prime Minister Chuan Leekpai, together with Minister of Finance Tarrin Nimmanahaeminda, Minister of Transport and Communications Suthep Thaugsuban, and officials from various other government agencies.

The financing documents were signed by THAI’s President Thamnoon Wanglee and executives from Ex-Im Bank, ECGD, and Barclays Bank. Also attending this signing ceremony were representatives from The Boeing Company and Rolls-Royce.

“We are pleased that Thai Airways International is able to increase its market share and competitive position in accordance with its strategic goals through the acquisition of these airplanes,” said Scott Scherer, Vice President of Customer Finance – Boeing Capital Corporation. “We are proud that this effective financing solution for THAI was achieved through the joint efforts of all parties involved.”

Under the agreements, Ex-Im Bank is guaranteeing the repayment of loans for the five Boeing airplanes and the four General Electric engines installed on the 747-400. ECGD is guaranteeing repayment of the loans for the eight United Kingdom manufactured Rolls-Royce engines installed on the 777-300s. THAI’s five airplanes and 12 engines will serve as collateral for these loans.


Back to index...


THAI Supports Overseas Election

Thai Airways International Public Company Limited recently announced its full support of the election of members to the Senate through assistance in transporting election cards to Royal Thai Embassies and Consulates in 76 countries worldwide which enables Thai citizens residing abroad to vote.

Mr. Kawin Asawachatroj, THAI’s Vice President, Cargo and Mail Comercial Department, said that, “The Election Commission has requested THAI to help distribute election cards, list of candidates and list of qualified voters to Royal Thai Embassies and Consulates worldwide via official mail sacks.”

A total of 26,601 Thai citizens living outside of Thailand were reported to have registered for the right to vote. Election cards must be returned to each election poll center by 29 February 2000.

The Election Commission, the Communications Authority of Thailand, the Overseas Election Coordination Center, Thai Consulates and the Ministry of Foreign Affairs, presented specially designed mail sacks to THAI for the transport of election cards and name lists. Since the beginning of January this year, THAI has distributed these materials to the 76 worldwide destinations on its network operations. Thai citizens residing in those countries are required to cast their votes between 16-26 February, 2000, the results being scheduled to arrive in Thailand between 19-29 February 2000.


Back to index...


THAI Increases Flights during Chinese New Year Period

Thai Airways International Public Company Limited announced an increase in domestic and international flight operations to accommodate an increase in passengers' demand for air travel during Chinese New Year as follows :

Domestic routes
  • 2 flights on the route Bangkok
  • - Chiang Mai v.v. on 5, 7 February 2000
  • 2 flights on the route Bangkok
  • - Chiang Rai v.v. on 5, 7 February 2000
  • 5 flights on the route Bangkok
  • - Phuket during 5, 7-10 February 2000
  • 5 flights on the route Phuket
  • - Bangkok between 4-7 February 2000

    International routes
  • 22 flights on the route Bangkok
  • - Hong Kong v.v. between 2-13 February 2000
  • 6 flights on the route Bangkok
  • - Macau v.v. during 5-7, 9-11February 2000
  • 4 flights on the route Bangkok
  • - Singapore v.v. during 3-4, 6-7 February 2000
  • 6 flights on the route Bangkok
  • - Kuala Lumpur v.v. during 5-7, 9-11 February 2000
  • 4 flights on the route Bangkok
  • - Penang v.v. during 4-5, 12-13 February 2000
  • 6 flights on the route Bangkok
  • - Peking v.v. during 4-6, 10-12 February 2000
  • 6 flights on the route Bangkok
  • - Shanghai v.v. during 3-5, 10-12 February 2000
  • 2 flights on the route Bangkok
  • - Guangzhou v.v. on 6, 11 February 2000
  • 3 flights on the route Bangkok
  • - Taipei between 3-5 February 2000
  • 3 flights on the route Taipei
  • - Phuket between 4-6 February 2000
  • 3 flights on the route Phuket
  • - Taipei between 8-10 February 2000
  • 3 flights on the route Taipei
  • - Bangkok between 9-11 February 2000

    THAI offers 24-hour reservation and flight information service at Tel. 628-2000.


    Back to index...


    THAI Holds 1999 Annual General Shareholders' Meeting

    Bangkok, 27 December 1999, 13:30 hrs. --- Thai Airways International Public Company Limited held its Annual General Shareholders' Meeting, chaired by Mr. Mahidol Chantrangkurn, THAI's Chairman, at the airline's Head Office, on Vibhavadi Rangsit Road. Participants during the meeting included members of THAI's Board of Directors, management team, senior executives, and shareholders to discuss the following issues.

    The airline's financial results 1998/1999 (October 1998 - September 1999) were reported as follows:
    Operating revenue = 107,653 million baht
    Operating expense = 90,489 million baht
    Operating profit = 17,164 million baht
    Pre-tax profit = 6,393 million baht
    Earnings per share = 3.79 baht

    According to the financial result 1999, new financial and estimated financial policies have been implemented. These included changes in the income tax recording policy. The record should be done after a completion of account deduction, which is calculated from the temporary differences between accounted and taxed net assets in accordance with the new accounting policy. There was also an extension to the ages of THAI's aircraft and engine types, from 14 to 20 years to suit actual utilization.

    The adjustment to the accounting policy included a deduction in the total exchange rate deficit from the accumulated profits of the previous financial year, where the deficit appeared in the airline's current balance sheet for the 1999. When the result was added to this year's profit, the airline was still making a loss at the end of the period. According to the State Enterprise Act, Clause 116, THAI was not required to allocate net profit for 1999 as a reserve and as a result was incapable of allocating the payment of dividends to the shareholders according to the State Enterprise Act, Clause 115, which prohibited payment of dividends when the company has accumulated loss.

    Another key issue is the appointment of new members to THAI's Board of Directors (please see the attached). In addition, there were many major achievements for 1999 including the opening of the New Second Aircraft Maintenance Facility at U-Tapao which also received aircraft maintenance certification from the Joint Aviation Authorities (JAA), the presentation of ISO9002 Certification to the Ground Customer Service and Cargo and Mail Departments. Moreover, THAI received five best airline awards from the Official Airline Guide (OAG), was selected amongst the world's top ten most favorite airlines in the "1998 Top 100 Reader's Choice Awards" survey conducted by the Conde Nast Traveler Magazine UK and was voted top for best work efficiency, human relations and excellent service provision by cabin attendants and on board meal services according to the International Air Transport Association Survey of Passenger on Europe-Asia Routes (IATA SPEAR).

    Highlights of THAI's Activities and Projects in 1999

    1. THAI inaugurated the domestic flight on the route Bangkok-Krabi
    2. Opening of Asia's largest Aircraft Engine Test Cell at THAI's Technical Department
    3. Opening of the Second Aircraft Maintenance Facility at U-Tapao which also received aircraft maintenance certification from the Joint Aviation Authorities (JAA) originating from nations in the European Union
    4. Official opening of THAI's Cabin Crew Center at Laksi, Bangkok
    5. Placing the logo of the celebration on the auspicious occasion of H.M. the King's 6th Cycle Birthday Anniversary and "The King's 72nd Celebration" on all THAI aircraft. The painting of Royal Barge on THAI aircraft royally bestowed by HM the King as "Haripoonchai" to promote Thailand to the world.
    6. THAI Float "The Royal Kingdom of Thailand" won the Craftsman Award at the 110th Tournament of Roses Parade, Pasadena, California, USA
    7. The Ground Support Services Department and Cargo and Mail Department received ISO9002 certification
    8. THAI was awarded for best Bangkok business premises in terms of safety at work by the Ministry of Labor and Social Welfare
    9. THAI was ranked top on work efficiency, human relations and excellent manners of cabin attendants and quality of meals on board, according to IATA SPEAR, International Air Transport Association Survey of Passenger on Europe-Asia Routes between October 1998-March 1999
    10. THAI's Royal Orchid Plus was voted the most popular frequent flyer program by Inside Flyer magazine
    11. THAI was ranked among the top ten best international airlines according to a survey conducted by American Express' Travel & Leisure magazine, September 1999 issue, under the categories cabin comfort, inflight services, on time record, food and customer service
    12. THAI was voted among the world's best airlines for 1999 by Official Airline Guide (OAG) on best Economy Class for international flights in the Asia Pacific region, Business Class for international flights in the Asia Pacific region, Economy Class for international flights, and best Frequent Flyer Program in the Asia Pacific region
    13. THAI's project "Go to Thailand While You are Still Young" won the TM Grand Prix Award from a group of Japan tourism consultant companies
    14. THAI was ranked top as the Most Price Conscious airline in the Asia Pacific region according to the World Jet Fuel Report magazine
    15. THAI was selected as one of the top ten most popular airlines following the 1998 Top 100 Reader's Choice Awards survey conducted by Conde Nast Traveller, UK
    16. THAI was voted among the top three most popular airlines by The Daily Telegraph newspaper, UK

    Thai Airways International Public Company Limited Board of Directors 2000

    1. Mr. Mahidol ChantrangkurnChairman
    Permanent Secretary, Ministry of Transport & Communications
    2. Mr. Supachai PhisitvanichVice Chairman
    Permanent Secretary, Ministry of Finance
    3. Air Chief Marshal Sanan TourtipVice Chairman
    Commander-in-Chief, Royal Thai Air Force
    4. Air Chief Marshal Nipon SakornyenDirector
    Managing Director, Airports Authority of Thailand
    5. Mr. Wisudhi SrisuphanDirector
    Comptroller General, The Comptroller General Department, Ministry of Finance
    6. General Mongkon AmpornpisitDirector
    Supreme Commander, Royal Thai Army Forces
    7. Police General Pracha PromnogDirector
    Director General, Royal Thai Police Department
    8. Mr. Sansern Wongcha-umDirector
    Secretary-General, Office of the National Economic and Social Development Board
    9. Mr. Wissanu Krea-ngamDirector
    Secretary-General to the Cabinet
    10. Mr. Poonsap Piya-anantDirector
    Director, The Bureau of the Budget
    11. Mr. Suchart TraiprasitDirector
    Chief Prosecutor
    12. Mr. Sumet TantivejkulDirector
    Secretary-General, Office of the Royal Projects Board
    13. Air Chief Marshal Terdsak SajjarkDirector
    Chief of the Air Staff, Royal Thai Air Force
    14. Mr. Bandit SiripanDirector
    Law Offices of M.R. Seni Pramoj
    15. Mr. Thamnoon WangleeDirector & Secretary
    President, Thai Airways International Public Company Limited


    Back to index...


    THAI Increases Flights During Christmas and New Year Period

    Thai Airways International Public Company Limited announced an increase in domestic and international flight operations during 24-25 December 1999 and 31 December 1999 – 3 January 2000, to accommodate an increase in passenger demand for air travel.

    Mr. Thamnoon Wanglee, THAI's President, announced that the airline's plans to increase in domestic and international flights operations during the Christmas and New Year period between 24-25 December 1999 and 31 December 1999 – 3 January 2000, to accommodate an increase in passenger demand for air travel as follows :

    • 6 flights on the route Bangkok - Chiang Mai v.v. on 2 and 3 January 2000 using Airbus 300-600 aircraft which has a 260 seat capacity and also utilizing the 389-seat of Boeing 747-400 aircraft.
    • 4 flights on the route Bangkok - Chiang Rai v.v. on 31 December 1999 and 3 January 2000. The Airbus aircraft A300-600 with a capacity of 260 seats will be used for the operation.
    • 6 flights on the route Bangkok - Phuket v.v. on 31 December 1999, 2 and 3 January 2000 utilizing Airbus 330-300 aircraft with 317 seats, Boeing 777-200 with 358 seats, and Boeing 747-400 with a 405-seat capacity.
    • 8 flights on the route Bangkok - Hong Kong on 24, 25, 27, and 29 December 1999 using 247 seats on board an Airbus 300-600 as well as 405 seats on a Boeing 747-400 aircraft.

    THAI offers 24-hour reservation and flight information service at Tel. 628-2000 and 280-0060.


    Back to index...


    THAI Establishes Crisis Management Center

    Thai Airways International Public Company Limited has established a coordination and communications, crisis center where Y2K or Year 2000 issues and concerns will be dealt with from the period 31 December 1999 to 4 January 2000.

    Flt. Lt. Sa-ad Sobsatrasorn, THAI’s Executive Vice President for Operations, announced that the airline has set up a Crisis Management Operations Center (CMOC) at THAI’s Head Office, located at Building 4, 3rd Floor, fully equipped with facilities and equipment necessary for the coordination of Y2K-related concerns as the new millenium approaches. THAI’s crisis management center will also serve as a central communications center for the exchange of information and news with the national Y2K center, Y2K centers of the International Air Transport Association (IATA) and the International Civil Aviation Organization (ICAO), and other related organizations.

    THAI’s Crisis Management Operations Center (CMOC) is fully equipped with modern technology and equipment which will be used for communicating with the flight operations center located at the airport, for inter-organizational communications within THAI, coordination with Aeronautical Radio of Thailand (AEROTHAI), with air-to-ground system communications via an airshow flight monitor. The monitor is equipped to receive signals from all television stations nationwide, including stations transmitting signals via satellite, complete with the capability to view nine channel simultaneously. In addition, the CMOC center is equipped with a computerized system making it possible to communicate with all functions within the airline, including Iridium telephone lines which facilitate the efficient transmission of news and communications. As a precautionary measure, members of THAI’s management and representatives from various functions within the airline will be on rotational duty at the crisis management center for the duration of 31 December 1999 through until 4 January 2000.

    The Y2K Coordination Center for the Ministry of Transport and Communications has also been set up at Building 3, 3rd Floor, at THAI’s Head Office, under the supervision of Mr. Mahidol Chantrangkurn, Permanent Secretary, Ministry of Transport and Communications and THAI’s Chairman, to deal with Y2K issues which may occur in functions operating under the ministry.


    Back to index...


    THAI Announces Results of Board Meeting

    Today (December 14, 1999) at Thai Airways International Public Company Limited's Head Office, a Board Meeting was held and was chaired by THAI's Chairman of the Board, Mr. Mahidol Chantarangurn, the main substance being as follows:

    1. Progress is Made on Solving Y2K Computer Glitches

    THAI's Board was notified of progress made towards the solution of Y2K computer problems that might arise as the new millenium approaches.

      1.1 Arrangements are being made for a meeting to be held amongst the committee and subcommittee of THAI's Y2K Monitoring Group (Y2KMG) to provide explanations about the coordination of and procedures used to monitorY2K problems. Discussion will include measures to be used as a basis for operations during the period from December 31, 1999 to January 4, 2000.

      1.2 A drill will be held to test THAI's operational readiness at the airline's Y2K Command Center to be held jointly with other organizations as specified by the National Y2K Command Center in December.

    2. THAI's Flight Plans During the Millennium Crossover into Year 2000

    THAI's Board was notified of changes to flight plans which will take effect during the millennium crossover period between December 31, 1999 and January 1, 2000, as the passenger load had decreased substantially on certain routes. Therefore, the airline decided to alter current flight schedules and to cancel flights on some routes, reflecting passenger volume as well as passenger demand.

    The airline cancelled 20 flights, or about 4.2% of the total 473 normal flights, which comprises of 14 flights to Europe on route to London, Munich, Paris, Frankfurt, Rome, Athens, Copenhagen and Zurich, 4 flights to Australia on route to Sydney, Melbourne and Perth, and 2 flights to Asia on route to Colombo. Times have been altered on 6 flights on route to Tokyo, Taipei, Seoul, Los Angeles, Sydney, Melbourne, Brisbane and Auckland.

    3.Upgrade of THAI's Crisis Management and Information Center (CMIC)

    THAI's Board passed a resolution for the airline to upgrade its crisis center or the Crisis Management and Information Center (CMIC), by attaching the entity to report directly to the Board of Directors.

    CMIC is the coordinating center to aid in communication between various agencies in the compilation of flight operations data and the airline's operational data so that all concerned remain informed of decision making processes for increased effectiveness, especially for flights operating during the millennial or Y2K changeover period. CMIC will serve as the management and operations center for all agencies affiliated with the Ministry of Communications and Transport (MOCT). The heads of MOTC-affiliated bodies will be stationed at CMIC to efficiently coordinate the monitoring of newsworthy developments for both domestic and international flights.

    4. Increasing the Role of the Private Sector in State Enterprises

    The Board was notified of progress made towards increasing the role of the private sector in state enterprises. This follows due to the fact that the Ministry of Finance co-signed and agreement with the airline to hire the CSFB group (Credit Suisse First Boston, Dresdner Kleinwort Benson, Asset Plus Securities Company Limited and Jardine Fleming Thanakom Securities Limited) as financial advisors. At present, the CSFB group has prepared a privatization plan for THAI, and has already sent it to the committee which will carry out the sale of shares in Thai Airways International Public Company Limited. CSFB has proposed that THAI sell its shares in a Public Offering simultaneously with a Strategic Sale, which CSFB will consider jointly with the Office of the National Economic and Social Development Board and the Ministry of Finance concerning operations according to the Private Sector Participation or Operation in State Activities Act of 1992.

    5. Progress Made in Securing Long-Term Finance for THAI's Aircraft Purchases

    The Board passed a resolution approving a proposal for the company to negotiate with Boeing Commercial Airplane Group, for Boeing to extend its bridge lease contract for 5 aircraft (Boeing 747-400 No. 13 and Boeing 777-300 Nos. 1-4) according to the original conditions until long-term financing is secured, with approval sought from the Ministry of Finance beforehand. If the Ministry of Finance approves, the process will continue.

    6. Concerning Service Improvements

    THAI's Board was notified of plans to improve the company's services in November and December 1999 as follows: Within inflight service, there has been training of services conducted on board, conduct and service, improvements in system assessment, and amendments to the service manual to bring it up-to-date. As for ground services, improvements have been made to through check-in services, passenger luggage service, VIP lounge services, and inflight meals, quality food control and service equipment improvement. These actions will be taken so that passengers receive more efficient and convenient services.


    Back to index...


    THAI Announces New Year Flight Plan

    Bangkok --- Thai Airways International Public Company Limited announced its flight operations plan during the millennium dates 31 December 1999, to 1 January 2000 due to low demand and to ensure passenger convenience.

    THAI has been addressing Y2K issues since 1996 and now all computerized systems have been tested, especially those of aircraft and flight operations systems. THAI and other aviation authorities have also conducted Y2K tests on computerized units for air traffic control and communication systems. Contingency plans have been drawn up and rehearsed to ensure that they would be fully functional when activated if necessary during the millennium change.

    Due to low demand of flights for certain sectors and to cater for passenger requirement during 31 December 1999 to 1 January 2000, THAI has announced the rescheduling and cancellation of some flights as follows:

    Rescheduling of 6 flights operating on the routes to and from Tokyo, Taipei, Seoul, Los Angeles, Sydney, Melbourne, Brisbane, and Auckland

    Cancellation of a total of 20 flights

    • 14 European flights on the routes to and from Bangkok to London, Munich, Paris, Frankfurt, Rome, Athens, Copenhagen and Zurich
    • 4 international flights on Australasian sectors on the routes to and from Bangkok to Sydney, Melbourne, and Perth
    • 2 international flights in Asia on the route operating to and from Bangkok to Colombo, Sri Lanka

    All THAI’s scheduled domestic flights remain unchanged due to high demand from air travelers during the New Year period.

    Following the cancellation of 20 flights and rescheduling of 6 flights between 31 December 1999 to 1 January 2000, THAI will be operating a total of 453 flights out of the regular 473 scheduled flights, which accounts for 4.2 per cent cancellation and 1.3 per cent rescheduling of all scheduled flights.

    Passengers holding reservation on any of the above flights are asked to contact the nearest TG office or telephone to (662) 628-2000, 24 hours a day for further assistance.


    Back to index...


    THAI Announces Financial Results 1998/99

    Thai Airways International Public Company Limited announced the airline’s financial results 1998/99, beginning October 1998 to September 1999.

    Mr. Amnuay Chanya, THAI’s Executive Vice President, Finance and Information Technology, announced THAI’s 1998/99 financial results (OCT98-SEP99) that the airline had an operating revenue of 107,653 million baht, a pre-tax profit of THB 6,393 million baht which was an increase of 1,124.46 million baht compared to the same period last year. Earnings per share reached 3.79 baht compared to the 2.81 baht during the same period last year.

    THAI achieved an increase of 1,379 million baht net operating revenue due to loss in the exchange rate resulting from adjustment of company foreign loans which amounted to 8,053 million baht compared to the 5,379 million baht during the same period last year. Cabin factor was calculated at 72.7 per cent compared to 67.9 per cent during the same period last year which is an increase of 4.8 per cent. There was also a reduction of 1,768 million baht expenses on aircraft fuel compared to the same period last year, the result of fuel cost reduction. Part of the profit also arrived from aircraft sales, which accounted for 2,608 million baht in profit as well as the adjustment of the airline’s policy in calculating the costs of aircraft and engine depreciation. Previously the life-time age of aircraft and engines was approximately 14 years. This has currently changed to 20 years in order to remain closer to the actual aircraft utilization age, creating a decrease in depreciation by 3,303 million baht.


    Back to index...


    THAI Welcomes SIA to the Star Alliance

    BANGKOK, 21 Oct. 1999 --- Commenting on Singapore Airlines’ recent announcement in Tokyo of the airline’s intention to join the Star Alliance, Mr. Thamnoon Wanglee, President of Thai Airways International Public Company Limited, stated that THAI welcomes Singapore Airlines as a forthcoming member in the alliance.

    During the All Nippon Airways (ANA) press conference held in Tokyo officially launching ANA into the Star Alliance, Mr. Wanglee stated that THAI, a founding alliance member airline, remains firm in its membership and commitment to the Star Alliance. Furthermore, he explained the relationship of two carriers, THAI and SIA as follows,

    “Over 20 years ago, Singapore Airlines and Thai Airways International accepted each other’s tickets without endorsement,” Mr. Wanglee said. Although this practice was later changed, Mr. Wanglee continued, “I think we may look into cooperating and having two hubs in Southeast Asia. I would like to cite examples, like Lufthansa and Scandinavian Airlines. They are Star Alliance member carriers, and they are competing against each other also. The same goes for Singapore Airlines and Thai Airways International. At the moment, the market share in Thailand is 60 percent forf the alliance members, so with Singapore Airlines coming in, we would increase our market share.”

    With the official launch of ANA and the future inclusion of Singapore Airlines as a full member next year, Mr. Wanglee said that the Star Alliance Asian market would be further strengthened and expanded. Additional membership by fellow Asian carriers translates to additional customer benefits and an extensive routenet for passengers flying the Star Alliance network.


    Back to index...


    Star Alliance introduces a new electronic distribution channel

    The members of Star Alliance, the airline network for Earth, have marked another alliance industry first by introducing a global internet tool allowing travelers to book seats on any alliance member's flight through the convenience of their own PC or laptop. The new, user-friendly system, which makes travel planning easy by being available 24 hours a day, seven days a week, was officially implemented on October 15, 1999.

    From the comfort of their home or office and at the touch of a mouse, customers may now select their flights and make their own reservations through a new on-line reservations tool on the Star Alliance website www.star-alliance.com. The site has been integrated with a "booking engine" linked to one of the major CRS systems which provides customers with a confirmed reservation as well as the cost of the ticket in local currency. Ticketing options vary by country and itinerary and include a choice of delivery by mail, electronic tickets or can be picked up at select city or airport ticket offices. In addition, customers can elect to have their flight miles credited to the Star Alliance frequent flyer program of their choice.

    It is possible to make reservations on any flight with the prefix of a Star Alliance airline, including code-share flights operated as part of bilateral agreements between individual Star Alliance members and regional carriers. Moreover, hotel rooms and rental cars can be booked through the system. The new, on-line reservation tool works in conjunction with the Star Alliance website travel management system, providing valuable international travel-planning functionality.

    A team of experts from all Star Alliance carriers has worked closely to design the first phase of this Star Alliance distribution channel to meet the needs of the growing internet market.

    In July, 1999, the Star Alliance members were the first to launch an alliance display in most major CRS systems. It allows travel agents to check schedule and availability of Star Alliance flights in a single display that shows only member airline direct flights and connections for a chosen itinerary. Star Alliance was the first to specify requirements for such a display, thereby paving the way also for other alliances to offer their combined flights according to the system users' preference.

    Star Alliance was established in May, 1997. It brings together some of the world's leading airlines in a partnership designed to provide customers the benefits of global reach and seamless travel. Current members of Star Alliance are ANA - All Nippon Airways, Air Canada, Air New Zealand, Ansett Australia, Lufthansa German Airlines, Scandinavian Airlines System – SAS, Thai Airways International, United Airlines and Varig Brazilian Airlines.

    Mexicana will become a member in the summer of 2000, while the Austrian Airlines Aviation Group, comprising Austrian Airlines, Lauda Air and Tyrolean Airways, recently announced that it intends to join Star Alliance in time for next year's summer traffic program.


    Back to index...


    ANA, World's Sixth Largest Passenger Carrier, Joins Star Alliance Network

    TOKYO, October 15 – At a colorful ceremony in Tokyo today, All Nippon Airways (ANA), Asia's largest passenger carrier, was welcomed as the newest member of Star Alliance the airline network for Earth. ANA becomes the ninth member of the airline alliance, and expands significantly Star Alliance's ability to serve customers traveling to one of the world's foremost business destinations.

    Joining the CEOs of the member airlines at the celebration was Dr. Cheong Choong Kong, Deputy Chairman and CEO of Singapore Airlines, who announced that Singapore Airlines would also be joining the Star Alliance marketing alliance in the near future.

    "Joining Star Alliance is an important step forward into a new century for ANA," said Mr. Kichisaburo Nomura, President and CEO of ANA . "By further expanding our network, especially in Japan, Southeast Asia and China, and strengthening travel demand, we look forward to playing an active role as a member of the Star Alliance team."

    "Our entry into Star Alliance will substantially strengthen the Alliance 's global route network, especially in Asia, the Asia-Pacific region and Europe," said Dr. Cheong. "We are offering our customers an opportunity to travel farther, faster, and more conveniently than ever before."

    With ANA joining the airline alliance, Star Alliance carriers serve more than 760 destinations around the world, in more than 112 countries spanning five continents. The Star Alliance network is now of such breadth that it is the most convenient way to get from virtually any business destination on the planet to another.

    Star Alliance airlines are the leading carriers in the regions they serve. As of today's announcement, the Star Alliance members are: Air Canada, Air New Zealand, All Nippon Airways, Ansett Australia, Lufthansa German Airlines, Scandinavian Airlines System – SAS, Thai Airways International, United Airlines and Varig Brazilian Airlines. Earlier this year, Mexicana Airlines announced that it would join the airline alliance next summer. Austrian Airlines has also announced plans to join. Singapore Airlines will become a member in the spring.

    "We are very pleased to have ANA as our newest member," the Star Alliance CEOs said in a statement. "The quality of their fleet, the extent of their network within Japan and overseas, and, above all, the quality of their customer service, makes ANA an ideal addition to our alliance."

    Among the key benefit to customers of Star Alliance airlines are Rewards and Recognition. Members of any Star Alliance frequent flyer program can accumulate and redeem mileage points on all scheduled flights operated by all member airlines. In addition, frequent flyer miles collected on paid qualifying Star Alliance flights count toward achieving top-tier status in the frequent flyer plan of the traveler's choice. All top-tier and middle-tier customers earn the designations of "Star Alliance Gold" and "Star Alliance Silver," respectively, which are recognized by all Star Alliance carriers and ensure that these customers receive the highest level of service at airports around the world.

    By traveling with Star Alliance airlines, passengers enjoy hassle-free travel from start to finish. The member airlines have adjusted their schedules to permit faster connections and, where possible, Star Alliance carriers are located in the same terminal with neighboring gates to make transfers more convenient. Usually, passengers can be checked right through to their destination, with boarding passes for each leg of the voyage, thereby saving passengers from having to check in at each intermediate stop. And while waiting for connections, eligible passengers have access to more than 250 business lounges operated by Star Alliance carriers in the world's major airports. The latest benefit of Star Alliance travel was officially introduced today: a global internet tool which allows travelers to select their Star Alliance flight and make their own reservations through the Star Alliance website, www.star-alliance.com. The new, user-friendly system makes travel planning easy by being available 24-hours a day, seven days a week and only a mouse-click away.

    Since the creation of the Star Alliance network in May 1997, the member airlines have served more than 400 million passengers. On average, a Star Alliance flight takes off somewhere on the globe every 10 seconds.

    Founded in 1952, All Nippon Airways served the Japanese domestic market for the first 30 years of its existence. In 1986, ANA entered a new era with its first scheduled flight from Narita (Tokyo) to Guam after the Japanese government decided to allow increased competition in the expanding Japanese market for overseas travel. It has since grown to be the sixth largest IATA airline in terms of passengers carried, serving more than half of the Japanese domestic travel market, and 28 destinations abroad. Last year, ANA served more than 41 million air travelers. ANA constantly strives to bring new levels of comfort to the business traveler. It was one of the first carriers to introduce 180-degree reclining comfort to First Class passengers, and Club ANA, ANA's Business Class offering, is widely recognized for its outstanding quality.

    Singapore Airlines is internationally recognized as one of the world's leading carriers and an industry leader and innovator, especially in the areas of product innovation and customer service. Its route network reaches out to over 90 destinations in over 40 countries, serving Asia, Europe, North America, the Middle East, the South West Pacific, and Africa. SIA has one of the youngest fleets of any major airline, with an average age of just over five years. The airline operates a fleet of MEGATOPS 747s, B747 MEGA ARK Freighters, JUBILEE 777s, CELESTAR A340s and Airbus A310s.


    Back to index...


    THAI Offers Special Menu to Mark King's 72nd Anniversary

    Between 4-6 December 1999, Thai Airways International Public Company Limited is pleased to offer special on board menu to passengers travelling on all international flights departing from Bangkok International Airport to celebrate an auspicious occasion of His Majesty the King’s 6th Cycle Birthday Anniversary 5th December.

    Mr. Wichit Yuktadatta, THAI’s Vice President, Inflight Customer Services Department, announced that, “On 5th December of every year, we usually incorporate products from His Majesty’s Royal Projects in our inflight menus as it is a special day for Thai people throughout the world. The 1999 is an auspicious year as we celebrate the 6th Cycle Birthday Anniversary of His Majesty the King, we would like to introduce our passengers to an extra special menu where raw materials are taken from the Royal Projects.”

    Passengers travelling on every class of all THAI international flights departing from Bangkok International Airport will be presented with unique dishes, including Chu-chee Pla Tubtim (Fish Curry) served with vitamin-rich unpolished steamed jasmine rice, crispy green salad with special “Rivers of King” dressing made from Trout and Tuna fish, mayonaise, sweet basil and galingel and “Ratanakosin” vinaigrette made from olive oil, chopped red and white onions, soya bean sauce and lemon grass. Dried Thai fruits will also be included in a selection of delicious desserts.

    ‘Pla Tubtim’ is a new species of fish in Thailand whose name was graciously granted by His Majesty the King on 22 January 1998, according to the fish ruby-like reddish skin. Following His Majesty’s wish to develop fish species in Thailand which serves agricultural demands and economic purposes, ‘Pla Tubtim’ is a cross breed between local fish ‘Pla Nin’ and a similar type of fish belonging to the same Family.


    Back to index...


    THAI and Five Aviation Authorities Launch Y2K Test Flight

    Bangkok, 8 October 1999 --- Thai Airways International, together with five major aviation authorities in Thailand, organized a Y2K Test Flight on board THAI’s B747-400 flight TG2000. Over 200 executives, guests, local and international media boarded the flight at Bangkok International Airport. Among the distinguished guests were His Excellency Mr. Suthep Thaugsuban, Transport and Communications Minister; Mr. Thamnoon Wanglee, President of Thai Airways International Public Company Limited; Mr. Rewat Bunnag, Deputy Vice President, Aeronautical Radio of Thailand (AEROTHAI); Mr. Sawat Sitthiwongse, Director-General, Department of Aviation; Flt.Lt. Yom Ngonrot, Deputy Governor, Aviation Development Division, Airports Authority of Thailand; Mr. Roger K. Nicholson, representative from Boeing Airplane Group Company; and members of THAI’s Management.

    This test flight was launched to test the performance of overall aviation systems for all involved organizations during flight operations, namely the AEROTHAI, Airports Authority of Thailand, Thai Airways International Public Company Limited and Department of Aviation. Tests of communication systems between the control tower and pilot during flight operations and the airport and aircraft navigation systems were conducted. Other aircraft systems have also been tested to ensure maximum flight safety while crossing the century date line.

    THAI’s Boeing B747-400, flight TG2000, was utilized for this special Y2K Test, with Captain Sa-ad Sobsatrasorn, THAI’s Executive Vice President, Operations, as the Pilot-in-Command, and Captain Udomchai Nantamanop, THAI’s Deputy Vice President, Operations, as the co-pilot. The aircraft took off from Bangkok International Airport at 6:20 a.m. (local time), equivalent to 23:20 Universal Time Conversion or UTC. The aircraft headed south and climbed to an altitude of 27,000 feet. The aircraft flight system and the ground equipment control system had been set at 31 December 1999. The changes were monitored every second during flight as the aircraft entered the new millenium, moving from 24:00 hours of 31 December 1999 until 00:01 hours of 1 January 2000 which was equivalent to 7 a.m. Bangkok local time. THAI’s flight TG2000 landed at Bangkok International Airport at 8 a.m.

    At 9 a.m., His Excellency Mr. Suthep Thaugsuban, Transport and Communications Minister, together with senior officials and executives from five aviation authorities, chaired a press conference which was held at THAI’s Head Office, Vibhavadi Rangsit Road.


    Back to index...


    Alleviating Y2K Problems at Thai Airways International

    Thai Airways International Public Company Limited established a Y2K Committee to alleviate Y2K problems, with efforts beginning in 1996, with a budget of 300 million baht following the standards of Y2K Compliance PD2000-1:1998 set by the British Standard Institution (BIS/DISC). THAI has successfully conducted Y2K tests on a total of 117 systems since September of this year. In addition, all aircraft types in THAI’s fleet have been tested for Y2K compliance, initiated by THAI as well as by aircraft manufacturers.

    A contingency plan has also been established to accommodate any occurrences that might be caused by various external factors, as the year 2000 approaches. THAI has set up a Y2K Business Compliance Committee (Y2KBC) which is responsible for coordinating with other organizations and authorities related to the commercial aviation industry in order to ensure that Y2K will not effect business operations. In addition, other functions within THAI have established contingency plans with effect between October 1998 to October 1999, which may be correlated to one another.

    A Crisis Management Operations Center (CMOC) has been established at THAI’s headquarters, located at Building 3, 3rd Floor, to act as a central point to monitor the Y2K situation on the evening of 31 December 1999. Communications between the pilot and ground operations may be conducted from the center. In addition, the center will be able to monitor all flights operating through this region and being accessible through the frequencies of the Aeronautical Radio of Thailand (AEROTHAI).

    As for international cooperation concerning the Y2K problems, THAI reports development and progress on a continual basis to the International Civil Aviation Organization (ICAO) according to the Aeronautical Information Circular (AIC) and the Y2K Readiness and Contingency Analysis Program (R-CAP) from the Federal Aviation Authority (FAA). These reports may serve as valuable information for other countries to evaluate the readiness of Thailand in dealing with Y2K problems.


    Back to index...