THAI Press Release

THAI and ANA Starts Codeshare Flight on Bangkok - Tokyo

Bangkok – Thai Airways International (THAI) and All Nippon Airways (ANA), announced commencement of codeshare service between Bangkok - Tokyo effective December 22, 2000.

Between Bangkok and Tokyo, THAI currently operates 14 round trip flights (28 flights a week) with ANA operating 7 weekly round trip flights (14 flights a week). Effective December 22, 11 weekly flights operated by THAI (daily service from Bangkok and 4 weekly from Tokyo) will be codeshared with ANA, while 7 weekly ANA operated flights (4 weekly from Tokyo and 3 from Bangkok) will be codeshared with THAI, a total of 18 weekly flights (8 from Tokyo and 10 from Bangkok).

THAI and ANA strengthened their cooperative relationship since September 1999 when joint frequent flyer program benefits were initiated between the carriers. Mr. Bhisit Kuslasayanon, THAI’s President said that, “we are confident that codeshare services on the route connecting the capitals will promote cultural and economic ties between the two nations.” Mr. Kichisaburo Nomura, President and Chief Executive Officer of ANA, stated, “the codeshare services between Tokyo and Bangkok is another step, for us as Star Alliance partners, toward providing customers with further enhanced convenience and comfort.”

THAI and ANA are members of Star Alliance, the airline network for Earth. THAI is a founding member, joining May 1997, while ANA became the ninth member on October 1999. As members of Star Alliance, THAI and ANA strive to offer travelers worldwide seamless air transportation service.


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THAI Holds Annual General Shareholders’ Meeting 2000

Bangkok, 14 December 2000, 13:00 hrs. --- Thai Airways International Public Company Limited held its Annual General Shareholders’ Meeting today, which was chaired by Mr. Srisook Chandrangsu, THAI’s Chairman, and held at the airline’s Head Office on Vibhavadi Rangsit Road. Participants included members of THAI’s Board of Directors, the airline management, senior executives, and shareholders, to discuss the following issues:

1. THAI’s financial results 1999/2000 (October 1999 – September 2000) were reported as follows:

THAI achieved 121,712 million baht in operating revenue, and a pre-tax profit of 4,914 million baht. Earnings per share reached 3.37 baht compared to 3.36 baht for the same period last year. The net operating revenue increased by 10 million baht, even though there was an increase of 7,486 million baht in expenses incurred on aircraft fuel compared to the same period last year. A loss in foreign exchange rate occurred, resulting from adjustment of company foreign loans which amounted to 3,301 million baht compared to 4,752 million baht during the same period last year. Cabin factor was calculated at 74.5 per cent compared to 72.7 percent during the same period last year, an increase of 1.8 per cent.

2. An accumulated deficit in retained earnings resulted in suspension of appropriation of net profits to a legal reserve and suspension of dividend payment for the Year 2000. According to the State Enterprise Act, Clause 116, THAI was not required to allocate net profits in the Year 2000 due to the reserve. This resulted in inability to allocate payment of dividends to shareholders, according to the State Enterprise Act, Clause 115, which prohibits payment of dividends when the company has accumulated losses.

3. Appointment of new members to THAI’s Board of Directors (please see attached)

Financial Highlights for Year 2000

1. Marked THAI’s 36th consecutive year of profitability
2. Achieved operating revenue of 121,712 million baht, an increase of 14,059 million baht or 13.1% compared to the same period last year
3. Achieved operating profit of 14,932 million baht, compared to 17,164 million baht for the same period last year
4. Achieved a pre-tax profit of 4,717 million baht, or 3.37 baht earning per share
5. Amount of traffic equivalent to 5,469 million ton-kilometers, an increase by 372 million ton-kilometers or 7.3 %
6. Total loading ratio was equivalent to 70.6 %, an increase from 69.7 % compared to the same period last year
7. Carried 17.7 million passengers, an increase of 1.4 million passengers when compared to the same period last year

Highlights of THAI’s Activities and Projects in 2000
(October 1999 – September 2000)

1. THAI achieved 36th consecutive year of profitability
2. THAI acquired 23 new aircraft and sold 2 aircraft, bringing THAI’s fleet to a total of 79 aircraft
3. THAI introduced the royal barge painting of Suphanahong, on one aircraft to promote tourism and to publicize Thailand to the world
4. THAI inaugurated an international flight on the route Bangkok – Danang, Vietnam and add a new domestic destination Petchabun on the route, Bangkok – Petchabun – Lampang v.v.
5. THAI’s flight reservation system was launched on THAI’s website www.thaiairways.com
6. THAI’s Cargo & Mail Commercial Department launched its website www.thaicargo.com
7. THAI’s General Administration Department received ISO 9001 quality management certification and THAI Headquarters received ISO 14001 environmental management certification from Bureau Veritas Quality International (Thailand) or BVQI
8. THAI’s Operations Department received ISO 9001 certification from Det Norke Veritas (DNV), Norway
9. THAI’s Technical Department received a certificate from Ministry of Industries for environmental preservation efforts to reduce the use of ozone-depleting chemicals
10. THAI was ranked one of the world’s best airlines according to Inflight Research Survey, Oxford, UK, under the categories of quality development and customer services
11. THAI’s Royal Orchid Plus was voted the most popular frequent flyer program by Inside Flyer magazine and won 1999 Freddie Awards
12. THAI was named the most Outstanding Airline for 2000 by Thai Airfreight Forwarders Association (TAFA) under the categories of cargo and mail
13. THAI was voted Airline of the Year 2000 for service at Auckland Airport, New Zealand
14. THAI began codeshare flights between Bangkok - Zurich with Swissair and between Bangkok – Tel Aviv with EL AL Israel Airlines

Thai Airways International Public Company Limited Board of Directors 2000

1. Mr. Srisook Chandrangsu Chairman Permanent Secretary, Ministry of Transport and Communications

2. Mr. Somchainuk Engtrakul First Vice Chairman Permanent Secretary, Ministry of Finance

3. Air Chief Marshal Pong Maneesilpa Second Vice Chairman Commander-in-Chief, Royal Thai Air Force

4. Police General Pornsak Durongkavibool Director Commissioner-General, National Police Bureau

5. Air Chief Marshal Kongsak Vantana Director Chief of Joint Staff Forces

6. Air Chief Marshal Nipon Sakornyen Director Managing Director, Airports Authority of Thailand

7. General Mongkon Ampornpisit Director Chairman, New Bangkok International Airport Company Limited

8. Mr. Wisudhi Srisuphan Director Comptroller-General, the Comptroller General Department, Ministry of Finance

9. Mr. Sumet Tantivejkul Director President, Pattana Thai Foundation

10. Mr. Poonsap Piya-anant Director Director, The Bureau of the Budget

11. Mr. Sansern Wongcha-um Director Secretary-General, Office of the National Economic and Social Development

12. Mr. Wissanu Krea-ngam Director Secretary-General to the Cabinet

13. Mr. Suchart Traiprasit Director Chief Prosecutor

14. Mr. Bundit Siripant Director Manager, Law Offices of M.R. Seni Pramoj

15. Mr. Bhisit Kuslasayanon Director & Secretary President, Thai Airways International Public Company Limited


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THAI Clarifies the Acquisition of New Aircraft

Following newspaper reports alleging that Thai Airways International purchased aircraft at a cost higher than the actual market price, THAI clarifies certain points in order to provide accurate information to the public.

Under the normal process of aircraft purchased, the aircraft manufacturer is required to propose an initial cost to customers or airlines. This cost is referred to as the Aircraft Basic Price and comprises:

- Base Air Frame Price
- Special Features
- Engine Price

The Aircraft Price also depends on the cost of Buyer Furnished Equipment for similar type of aircraft. However, the Base Air Frame Price and Engine Price for customers are standard. The customer's requirements for Special Features and Buyer Furnished Equipment, such as seats and interior decoration, are relatively similar, and therefore, the proposed costs forwarded to different customers or airlines are not markedly different.

The aircraft manufacturer is also required to propose a concession fee to customers or airlines, which is unique to each customer. This varies with the terms of agreement between the manufacturer and customer, such as the number of aircraft ordered at any given time, the current market situation and trend for both the manufacturer and customer, and special conditions, for example, being a launch customer. Therefore, there are several factors, which may play an important role in determining the cost of aircraft, including the delivery date of the aircraft and requirement for special features.

Thai Airways International confirms that the plan to acquire and purchase aircraft has been conducted according to the rules and regulations set by the company as a State Enterprise. These aircraft have not been acquired at a higher price when compared to other airlines. The purchasing of new aircraft is in accordance with the company's long term plan 2000/01- 2004/05, which received approval from THAI's Board of Directors, the Transport and Communications Ministry, Finance Ministry, the National Economic and Social Development Board, and the Cabinet, respectively. The decision on the selection of aircraft types and models is left to the discretion of THAI's Board of Directors.


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THAI Announcement After Board of Directors' Meeting

28 November 2000, Thai Airways International Public Company Limited held a Board of Directors' Meeting, chaired by Mr. Srisook Chandrangsu, THAI's Chairman, with the following results:

1. Visual System Modification of Airbus A300-600 Aircraft Simulator

The Board of Directors approved the contract to install the visual system modification of Airbus A300-600 aircraft simulator from Thomson Training and Simulation to increase effectiveness of the simulator.

2. THAI's Balance Sheet and Income Statement

The Board of Directors was informed of THAI's financial performance through presentation of balance sheets and statement of income 1999/2000. THAI achieved 121,712 million baht in operating revenue, and a pre-tax profit of 4,914 million baht. Earnings per share reached 3.37 baht compared to 3.36 baht for the same period last year.

The net operating revenue increased by 9 million baht, even though there was an increase of 7,485 million baht expenses on aircraft fuel compared to the same period last year. The loss in exchange rate resulting from adjustment of company foreign loans amounted to 3,301 million baht compared to 4,752 million baht during the same period last year. Cabin factor was calculated at 74.5 per cent compared to 72.7 percent during the same period last year which is an increase of 1.8 per cent.


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THAI Releases New Brochures to Promote Thailand Attractions

In support of the government policy to promote tourism in Thailand among visitors worldwide, the Commercial Department of Thai Airways International Public Company has recently produced a series of ten attractive promotion brochures, offering a wide range information about Thailand as well as the facilities and activities available for visitors in Thailand.

THAI brochures offer the following:

1. Practical information Thailand brochure
- To highlight essential information and facilities of Thailand for tourists

2. Handicrafts of Thailand brochure
- To spotlight Thai culture and tradition reflecting on handicrafts

3. Festivals in Thailand brochure
- To highlight the calendar of festivals in Thailand for tourists.

4. Fruits in Thailand brochure
- To promote variety of fruits in Thailand

5. Special Interest Travels in Thailand brochure
- To spotlight more the range and diversity of holiday travel experience in Thailand

6. Beach Resorts in Thailand brochure
- To promote Thailand’s superb beaches and resorts

7. Eating in Thailand brochure
- To promote Thai cuisine especially the unique taste of Thai food

8. Shopping in Thailand brochure
- To promote the variety of shopping including Thailand’s traditional products

9. Sports in Thailand brochure
- To highlight variety sports and activities in Thailand

10. Highlights of Bangkok brochure
- To spotlight the capital city of Thailand and the many nearby attractions

All brochures are now available at THAI’s sales offices in Bangkok and worldwide.


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THAI Serves Special Menu to Mark His Majesty the King's Birthday on 5th December

Throughout December 2000, Thai Airways International Public Company Limited is pleased to offer a special on board menu to passengers traveling on all classes of every THAI international flights departing from Bangkok, to celebrate an auspicious occasion of His Majesty the King's Birthday Anniversary.

Mr. Bhisit Kuslasayanon, THAI’s President, announced that, “On 5th December of every year, THAI incorporates products from the Royal Projects in the in-flight menus. This year, THAI is also proud to introduce the special on board menu to passengers where fresh ingredients and raw materials are taken from the Royal Projects.”

Passengers traveling on all classes of every THAI international flight departing from Bangkok International Airport will be able to experience a wide range of unique dishes, including Tub Tim Fish Chuu-chee (Fish Curry), and Mix Green Salad with special “River of Kings” Dressing. The Doi Kham Pudding with Brandy Vanilla Sauce is among the list of delicious desserts to be served on board THAI flights.

THAI also offers special menus to passengers traveling on board THAI flight TG640, routed Bangkok – Narita throughout December 2000. The special menu is designed by M.L. Sirichalerm Svasti or widely known among food experts in Thailand as Khun Muek Daeng, are:

Royal First Class :
Grilled Marinated Pork Maki
Sweet Pork Maki and Green Mango Maki
Smoked Parma Ham with Fresh Fruits Somtum Salad
Rice Noodle Stuffed with Tiger Prawn

Grilled Cat Fish Teriyaki with Steamed Japanese Rice and Vegetables
Or Grilled Curried Chicken Souffle wrapped with Banana Leaf on Chopped Cabbage and Sweet Basil Bed
Or Roasted Sirloin Strip with Thai Wild Mushroom Pommard Sauce

Banana Pudding with Red Bean Paste and Vanilla or Chocolate Sauce

Royal Executive Class:
Smoked Parma Ham with Fresh Fruits Somtum Salad
Marinated Salmon Rosette

Grilled Cat Fish Teriyaki with Steamed Japanese Rice and Vegetables
Or Grilled Curried Salmon Souffle with Steamed Jasmine Rice and Chinese Broccoli
Or Fillet of Beef with Wild Mushroom and Red Wine Sauce

Banana Pudding with Red Bean Paste and Vanilla Sauce

Economy Class :
Grilled Curried Salmon Souffle with Steamed Jasmine Rice and Chinese Broccoli
Or Fillet of Beef with Wild Mushroom and Red Wine Sauce

Banana Pudding with Red Bean Paste and Vanilla Sauce

Starting from 1 December 2000, the Dom Perignon and Cuvee des Roys champagnes will be served on board all THAI international flights to passengers traveling on THAI’s First Class.


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THAI Announcement After Board of Directors’ Meeting

23 November 2000, Thai Airways International Public Company Limited held a Board of Directors’ Meeting, chaired by Mr. Srisook Chandrangsu, THAI’s new Chairman, with the following results:

1. Appointment of New Chairman

The Board of Directors approved the appointment of Mr. Srisook Chandrangsu, Permanent Secretary, Ministry of Transport and Communications, as THAI’s Chairman and a member of THAI’s Board of Directors, replacing Mr. Mahidol Chantrangkurn with immediate effect.

2. Product Improvement

The Board of Directors approved plans to improve seats, for increased comfort, on six Boeing 777-300 aircraft. The first modified aircraft is scheduled for completion in May 2001.

3. Cooperation for Information Technology System at Suvannabhumi Airport

The Board passed a resolution to approve in principle for THAI to join with Aeronautical Radio of Thailand and Telephone Organization of Thailand to prepare a proposal for operation of the Information Technology System at Suvannabhumi International Airport


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THAI Holds Special Meeting to Discuss the Formation of Thai Tourism Alliance

22 November 2000, Mr. Bhisit Kuslasayanon, President, Thai Airways International Public Company Limited, chaired a meeting to discuss the formation of "Thai Travel Industry Alliance". The meeting was held between THAI and executives from concerned travel organizations and institutes in Thailand to decide on the future cooperation to form this tourism alliance.

Attending the meeting were Mr. Kusa Panyarachun, Advisor of Thailand Tourism Society, Mrs. Yaowaluck Pangsapa, Advisor of Thailand Tourism Society, Mrs. Suchada Yuwaboon, Vice President of Thailand Tourism Society, Mr. Saneh Jotikasthira, President of Association of Thai Travel Agents (ATTA), Mr. Anan Sirisant, Vice President of Association of Thai Travel Agents, Mr. Somchai Bencharongkul, President of Angel Airlines, Capt. Jothin Pamon-Montri, President of PB Air, Mr. Supareuk Surangkurn, Secretary of Association of Thai Travel Agents, Mr. Wattana Paradorachai, Honorary Advisor of Thai Hotel Association (THA).

The main objective of this project is to further promote travel, tourism and culture of Thailand, offering innovative travel programs to foreign visitors to explore this part of Asia.

The "Thai Travel Industry Alliance" committee has been established with the founding members as follows:

Founding Members:
1. Mr. Bhisit Kuslasayanon Chairman President of Thai Airways International
2. Dr. Prasert Prasarttongosoth Director President of Bangkok Airways
3. Capt. Jothin Pamon-Montri Director President of PB Air
4. Mr. Somchai Bencharongkul Director President of Angel Airlines
5. Mr. Wichit Na Ranong Director Chairman of Thailand Tourism Society
6. Mr. Anan Sirisant Director Vice President of Association of Thai Travel Agent
7. Mr. Chanin Donavanik Director President of Thai Hotel Association
8. Mrs. Suprabha Moleeratanond Secretary THAI's Manager for Travel Industry Relations

The Advisors are:
- Mr. Kusa Panyarachun Advisor, Thailand Tourism Society
- Mrs. Yaowaluck Pangsapa Advisor, Thailand Tourism Society

The "Thai Travel Industry Alliance" also welcomes new members who wish to join the alliance in the future, as well as government organizations, as the alliance's supporting bodies.


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THAI 1999 Profits Make a Comeback

Thai Airways International Public Company Limited was ranked among the top 20 airlines under the categories Highest Group Operating Profits (ranked 11th) and Highest Group Operating Margins (ranked 12th), according to the World Airline Financial Rankings survey published in Airline Business Magazine, September 2000 issue. The Profit and Loss analysis for 1999 was conducted among the world's top 150 airline groups while the ranking was based on individual airline operations, rather than group results. The Regional Analysis also ranked Thai Airways International among the top ten Largest Airline Group: Asia-Pacific (ranked 8th) .

The results were taken from reports submitted by the airline groups. Other sources included press statements and other published reports including figures from IATA's World Air Transport Statistics (WATS).

The elements used in the financial ranking included revenue, percentage change in revenues, operating and net results, operating and net margins, and mainline revenues by division (applicable to parent mainline carrier)

The 1998 Asian economic crisis caused long-term effects on operations of various industries including airlines. However, despite the hike in fuel costs and exchange rate, many Asian airlines made a comeback with higher net profits, including Thai Airways International, which marked an apparent recovery among Asia-Pacific's airline groups.


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THAI Celebrates 40th Year of Operations to Jakarta

6 November 2000 -- Thai Airways International’s Jakarta Office hosted an evening reception to mark the occasion of THAI’s 40th Year Operations to Jakarta on 6 November, at the Shangri-La Hotel in Jakarta, Indonesia. Guests who attended the event included representatives from both government and private sectors, other airlines, the tourism industry, embassies and members of the press. The program included Thai classical performances from the Fine Arts Department and a local performance.

“THAI inaugurated flights to Jakarta on 6 May 1960. During that era, THAI operated two weekly flights on the route Bangkok-Singapore-Jakarta-Singapore-Kuala Lumpur-Bangkok, using DC6-B aircraft (TG401). In 1969, THAI added another Indonesian destination to serve Denpasar (Bali) with three weekly flights on the route Bangkok-Singapore-Jakarta-Denpasar, using DC8 aircraft (TG423) to accommodate the rising demand of air travelers. In 1998, THAI inaugurated three weekly direct flights to Jakarta via TG433,” said Mr. Agkarajit Panomwon na Ayutthaya, THAI’s General Manager for Jakarta.

Throughout the past 40 years, THAI’s standard of service on Indonesian routes have been widely recognized and accepted amongst international business travelers and holiday travelers worldwide.

Currently, THAI operates three weekly flights on the route Bangkok–Jakarta, on Tuesday, Thursday, and Saturday via TG433, and daily flights on the route Bangkok-Singapore-Jakarta via TG413.

As THAI prepares to celebrate 40 years of operations, the airline will also develop and promote services on this sector in order to accommodate rapidly expanding aviation industry in the Southeast Asian region.


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THAI Presents Financial Rewards to Thai Paralympic Games Medallists

Bangkok, 2 November 2000 - The Management team of Thai Airways International Public Company Limited, led by Mr. Bhisit Kuslasayanon, President, welcomed the Sydney Paralympic Games medallists and officials and presented financial rewards. Among honored guests were the President of Sport Association for the Disabled of Thailand, General Paiboon Eamphan, and members of the Paralympic Games Committee.

The financial rewards were given with the aim of boosting higher morale among the disabled athletes. The Gold medallist received a 100,000 baht cheque, 50,000 baht for Silver and 20,000 baht for Bronze medallists. Thailand won five gold medals, four silver and two bronze at the Sydney Paralympic Games.

1. Mr. Prawat Wahorum, the winners of 2 gold medals for the 10,000 meters and 5,000 meters and 1 silver medal for the 4x400 meters wheelchair race, received 250,000 baht
2. Mr. Supachai Koisup, the winner of 2 gold medals for the 200 and 4x100 meters and 1 silver medal for the 4x400 meters wheelchair race, received 250,000 baht
3. Mr. Prasit Thongchean, the winner of 1 gold medal for the 4x100 meter and 1 silver medal for the 4x400 meters wheelchair race, received 150,000 baht
4. Mr. Sopa Inthasen, the winner of 1 gold medal for the 4x100 meter and 2 silver medals for the 100 and 4x400 meters wheelchair race, received 200,000 baht
5. Mr. Ampai Saeleang, the winner of 1 gold medal for the 4x100 meter, received 100,000 baht
6. Mr. Somchai Duengkaew, the winner of 1 gold medal for the 50 meters and 1 silver medal for the 150 meters Butterfly stroke, received 150,000 baht
7. Ms. Somkuan Anonta, the winner of 1 gold medal for the under 56 kgs weight lifting , received 50,000 baht
8. Mr. Thongsa Marasri, the winner of 1 bronze medal for the under 48 kgs weight lifting, received 20,000 baht
9. Mr. Saiphon Kaewsri, the winner of 1 bronze medal for the 50 meters Breast stroke, received 20,000 baht

Adding to the overall financial reward of 1,190,000 baht, THAI also presented another 500,000 baht cheque to General Paiboon Eamphan, President of the Sport Association for the Disabled of Thailand, in support of the Association's future activities to improve the skills of the athletes to compete with other countries.


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THAI Organizes 7th Laguna Phuket Triathlon 2000

Bangkok, 2 November 2000 -- Thai Airways International held a joint press conference to announce the upcoming Laguna Phuket Triathlon 2000 which is scheduled to take place on 2 December 2000, chaired by Mr. Sutat Rattanakunjara, THAI’s Vice President, Product Development & Management, Mr. Suraphon Svetasreni, Director for Marketing Services Department, the Tourism Authority of Thailand, Mr. Niyom Tassaneetipagorn, Assistant Vice President, Laguna Resort Hotel Public Company Limited, and Mr. Michael Dale, Assistant Vice President, International Management Group Public Company Limited (IMG).

The 7th Laguna Phuket Triathlon 2000 is a result of joint cooperation between Thai Airways International, the Tourism Authority of Thailand, Laguna Resort Hotel, and International Management Group (IMG). The main objective in organizing the event was to help promote Thailand tourism industry by exhibiting the unique beauty of Phuket and its natural surroundings. In addition, the triathlon is one of Southeast Asia’s major sporting events participated by athletes worldwide.

Following the standard of the Olympic Games, the competition will begin with a 1,800-meter swim course from the beach in front of Sheraton Grand Laguna Beach Resort towards the lake in front of Laguna Beach Club. This will be followed by a 55-kilometer cycling which will end at the Laguna Beach Club. Participants will complete the tournament with 12-kilometer run along the ring road around Laguna Phuket Resort, the competition to end at Banyan Tree Phuket Hotel.

The 1999 champions, Marc Lees will defend his title for the second consecutive year and Lori Bowden after her 2nd place finish at the Hawaii IronMan Competition will also take part in this year’s competition, together with international athletes from Australia, the United States, Canada, and Europe. This year, winner prizes for this year include US$30,000. The 2000 Laguna Phuket Triathlon offers 25 guaranteed entries into the 2001 IronMan World Championship in Hawaii. An extra 10,000 Baht cash prize will be given to Thai athletes who reach the finish line.

Race registration can be made at the Laguna Sport Company Limited at Tel: (076) 324060 or Fax (076) 324061 or IMG at Tel:661-0322 ext. 11 or Fax: 661-0321. The field is limited to only 550 competitors.


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THAI Voted Among Top Ten Best Asia Pacific Airlines

Thai Airways International Public Company Limited was voted among top ten best airlines in the Asia Pacific region, under the categories Best Economy Class, Best Airline Food, Best Cabin Crew Service and Best Frequent Flyers Program, according to the 9th annual readers' survey published in Business Traveller Asia Pacific magazine October 2000 issue.

This year's Business Traveller readers' poll has shown that customers placed a special emphasis not only on excellence of services and operations but the consistency of the services being provided. The results have proved a remarkable improvement in THAI services and operations compared to the results in year 1999.

The survey was jointly conducted together with Worldroom.com on-line global travel resource. A total of 10,250 questionnaires were mailed to Business Traveller's subscribers in June 2000 issue and 59 on-line questionnaires were displayed on screen. Under the survey, 41 Asia Pacific airlines were listed, as well as 162 hotels and 15 leading airport cities. A scale of 1-10 was given to readers to vote for each category. The respondents to both mailed and on-line questionnaires had an average income of USD 131,000 per annum and had taken an average of 30.8 business trips in the year between July 1998 to June 1999.

Bangkok was voted among the top ten Best Cities for Eating Out and Best Asia Pacific Leisure Destination. Six hotels located in Bangkok were voted Best Hotel for Business.


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THAI Holds the Extraordinary Shareholders' Meeting

Today (25 October 2000), Thai Airways International Public Company Limited held its Extraordinary Shareholders' Meeting No. 1/2543, chaired by Mr. Supachai Phisitvanich, THAI's Vice Chairman. Also present at the meeting included members of THAI's Board of Directors, Management, and shareholders. The meeting was held to discuss the following agendas:

To consider and approve the reduction of the Company's registered capital from 16,000,000 Baht (Sixteen Thousand Million Baht) to 14,000,000 Baht (Fourteen Thousand Million Baht) by canceling the unissued 200,000,000 (Two Hundred Million) shares for the value of 2,000,000,000 Baht (Two Thousand Million Baht)

To consider and approve the increase of the Company's registered capital from 14,000,000 Baht (Fourteen Thousand Million Baht) to 17,000,000 Baht (Seventeen Thousand Million Baht) by issuing 300,000,000 (Three Hundred Million) ordinary shares, par value of 10 Baht per share.

To consider and approve the allocation of the 300,000,000 (Three Hundred Million) ordinary shares according to the Cabinet Resolution as follows:

1. Offer and sell 127,500,000 shares (One Hundred Twenty Seven Million Five Hundred Thousand Shares) to the strategic partner on a private placement basis to not more than 35 investors and/or to 17 categories of institutional or specific investors under the Securities and Exchange Commission Notifications No. Gor Jor. 12/2543 Re: Application and Permission in Issuing New Shares dated 22 March 2000, or as to be amended, at one time or from time to time, provided that the number of shares in each offering of such shares when combining with the number of the Company's shares held by the Ministry of Finance and sold to such strategic partner shall not exceed 10 per cent of the Company's total paid-up capital after such offering.

2. Offer and sell 157,500,000 shares (One Hundred Fifty Seven Million Five Hundred Thousand Shares) to the public at one time or from time to time.

3. Allocate 15,000,000 (Fifteen Million) ordinary shares to employees pursuant to the employee securities option plan of Thai Airways International Public Company Limited ("ESOP") in the case where the employees elect to exercise their rights to subscribe to the shares under ESOP and/or to reserve for the exercise of the warrantholders in the case where the employees elect to receive the warrants under the ESOP instead of the shares.

In order to create higher staff morale, the Board of Directors deems appropriate to propose the shareholders' meeting to consider and approve the implementation and establishment of the ESOP (Employee Securities Option Plan of Thai Airways International Public Company Limited) and to consider and approve the offer and sale by the Company of the ordinary shares and/or warrants to purchase the ordinary shares of the Company (the "Warrants") to employees having qualifications as set out in the details of ESOP.

The Board of Directors and/or person(s) entrusted by the Board shall be authorized to determine the terms, condition, and other details relating to such offering, such as the offering period, offering price, allocation method, details of the offering and sales, appointment of underwriters, opening of account to receive share price, etc and to implement any other actions necessary for or relating to the said offering.

In addition, the Extraordinary Shareholders' Meeting No. 1/2543 was held to consider and approve the amendment of Article 10 of the Company's Articles of Association regarding the adjustment of foreign shareholding ratio from 10 per cent to 30 per cent of the total number of shares sold.


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THAI Announces Results of Board Meeting

Today (19 October 2000), Thai Airways International Public Company Limited held a Board of Directors’ Meeting, chaired by Mr. Mahidol Chantrangkurn, THAI’s Chairman, with the following results:

1. Aircrews System Project

The Board of Directors approved and authorized an investment of 321.92 million baht for the installation and operation of AIRCREWS system of the Sabre Group Company. From the questionnaire distributed among THAI cabin crew to obtain their feedback and opinion on utilization of the AIRCREWS system to manage their daily operations and schedules, 93.02 per cent agreed to the use of this system.

2. The Selection of Aviation Consultant

The Board of Directors agreed to the appointment of Roland Berger & Partner GmbH as THAI aviation consultant under THAI’s privatization plan. The Roland Berger & Partner GmbH Company offered lower consultant fees in comparison to other companies. The Roland Berger & Partner GmbH Company also provided a complete list of responsibilities in accordance with the Terms of Reference (TOR).

3. Annual General Shareholders’ Meeting for 2000

The Board of Directors approved the date of the Annual General Shareholders Meeting for 2000 on Thursday, December 14, 2000, at 13:30 hours, the Auditorium, THAI’s Head Office, on Vibhavadi Rangsit Road. The company will close its share register book for the right to attend the meeting on Monday, November 27, 2000, at 12:00 hours up until the completion of the meeting.

4. Payment for THAI’s 5th and 6th Boeing 777-300

The Board of Directors approved the lease financing of THAI’s 5th and 6th Boeing 777-300 by Barclays Bank Plc./Barclays Capital with US EXIM Bank and ECDG as the guarantors. The Finance Ministry will not guarantee the loan. THAI will submit the proposal to the Ministry of Finance for Cabinet approval.

5. Appointment of Activity Relations Committee Members

The Board of Directors approved the appointment of Miss Jamsri Sukchotirat, President of THAI’s State Enterprise Labor Force, the representative of the Labor Force, as the Director of the Activity Relations Committee, replacing Mr. Pisit Papongpan, with immediate effect. (The Activity Relations Committee plays an important role in bringing management and staff together to discuss various issues concerning labor welfare)

6. Sale of THAI Shares

The Board of Directors passed the resolution that THAI should prepare the document for share distribution within year 2000, following the request made by the Ministry of Finance. The plan is set to work in accordance with the Development Plan of Thai Investment Market 2000-2002 and resolution of the Security and Exchange Commission.


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THAI Sponsors Inflight Catering Asia Pacific Conference

Bangkok 19 October 2000, His Excellency Mr. Suthep Thaugsuban, Transport and Communications Minister, presided over the official opening of the 4th IFCA/IFSA Asia Pacific Conference 2000, taking place at Marriott Royal Garden Riverside Hotel, Bangkok, at 9:00 am. Thai Airways International was selected as the official carrier of the conference bringing guest speakers and delegates to Bangkok. THAI's Management team, led by President Bhisit Kuslasayanon was also present at the opening. The two-day conference will be held on 19-20 October and over 200 delegates, comprising of representatives from member airlines, caterers and suppliers are expected to attend the event.

International Flight Catering Association (IFCA) and International Food Service Association (IFSA) jointly act as the media to promote in-flight catering and services for member airlines, caterers and suppliers in the Asia Pacific region. The conference will include workshops, presentations and panel discussions on various topics such as Profile of Future Passengers and How to Translate Their Needs into Products, Thai Food & Drink Through the Ages, Development of Airports, and Airbus A3XX. Guest speakers and panelists include Mr. Prasert Khlongwathanakith, THAI's Vice President, Subsidiaries and Investment, Mr. Ekamol Kiriwat, M.L. Sirichalerm Svasti, better known as Khun Muk Daeng and Mr. Wissel from Airbus Industrie. The conference provides opportunities for members to exchange ideas and prepare for turn-of-the-century developments to meet future demands from air travelers. Members will have the chance to display their full production capacity, capability and performance to boost future cooperation among the membership.

"THAI's Catering is the largest airline caterer in Southeast Asia. In terms of quality, products and services, I am proud to say that THAI has been accepted on an international level such as ISO9002, GMP and HACCP for providing and maintaining the highest standard of service on a continual basis. This is an excellent opportunity for customers to find out more about THAI's catering,," said President Bhisit.

For this year, the Planning Committees of IFCA and IFSA, with the assistance of THAI's representatives, have decided to select Thailand as the host country for the conference, allowing delegates to experience and explore the unique Thai culture and tradition. The conference helps to further promote Thailand's tourism and aviation industry.

THAI's Catering Services Department has been established since 1960 and currently caters for 39 customer airlines operating out of Bangkok International Airport.


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THAI Submits Plan to Purchase New Aircraft to the Cabinet

On 17 October 2000, Thai Airways International Public Company Limited submitted the State Enterprise Long-Term Plan 1999/2000-2004/05 to the Cabinet for approval. The plan includes acquisition of five new aircraft.

According to THAI's President, Mr. Bhisit Kuslasayanon, THAI's Board of Directors agreed in principle to the State Enterprise Long-Term Plan 1999/2000-2004/05 on 25th May, 2000. THAI's Long-Term Plan covers the airline's operations and investments for the next five years by placing special emphasis on promoting commercial aspects of operations. THAI aims to strengthen its revenue-generating potential, develop and maintain the highest standard of quality products and services, as well as enhance management techniques.

The acquisition of five new aircraft is in accordance with THAI's marketing and product development plans. THAI plans to modernize the aircraft fleet to promote higher performance and safety standards in line with global standards in the airline industry. Fleet development will enable THAI to accommodate the rapid growth of air traffic demand of 5 per cent per annum. THAI also plans to expand its service network to cover more destinations on intercontinental and regional routes at an expected rate of 4.7 per cent production per annum. The rationalization of THAI's aircraft fleet will help reduce costs in the long term. THAI will also operate in support of government policy and activities to aid the recovery of Thailand's economic situation through promotion of Thailand's tourism industry. The acquisition of new aircraft will enable THAI to compete more effectively in the commercial airline business.

A budget of 31,544 million Baht has been allocated to cover the new aircraft, which comprise one medium-range aircraft and four long-range aircraft. Following Cabinet approval, THAI's Board of Directors and Management may then select appropriate type and series of aircraft, focusing on performance and seat capacity. Other issues will also be considered including technology, operational cost, and economic returns. Specifications of these aircraft must be in accordance with THAI's marketing strategies and the existing composition of aircraft fleet. This issue will be raised at THAI's Ordinary General Annual Shareholders' Meeting on 20th December, 2000.


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THAI Announces Winter Programme 2000/2001

Thai Airways International Public Company Limited recently announced its Winter 2000/2001 flight timetable for both domestic and international routes, effective from October 29, 2000 – March 24, 2001. THAI will change flight timetables in terms of routes, service frequency, and type of aircraft used on each route as follows:

Domestic routes

Bangkok – Chiang Rai:
An increase of 2 additional flights per week, totaling 35 flights per week
Bangkok – Nakhon Si Thammarat:
An increase of 2 additional flights per week, totaling 9 flights per week
Bangkok – Trang – Krabi:
An increase of 6 additional flights per week, totaling 20 flights per week, utilizing Boeing 737-400 aircraft

International routes
THAI has alter its flights on the routes to Europe, Australia, and Asia as follows:

Europe:
An increase to 56 flights per week, from 53 flights per week, with an increase of 1 additional flights per week on the routes Bangkok – Copenhagen, Bangkok – Stockholm, and Bangkok Munich.

Australia:
An increase to 24 flights per week, from 19 flights per week as follows:

  • The route Bangkok – Perth has been increased by 1 additional flight per week, totaling 5 flights per week, utilizing Airbus A330-300 aircraft
  • The routes Bangkok – Sydney, Bangkok – Melbourne, and Bangkok – Auckland have been increased to 19 flights per week, from 15 flights per week, utilizing Boeing 777-300, effective from December 1, 2000 onwards.

Asia:

  • Bangkok – Osaka : Another 4 flights per week have been added, utilizing Airbus A300-600 aircraft
  • Bangkok – Seoul : Another 3 flights per week have been added, utilizing Boeing 777-200 aircraft
  • Phuket - Singapore : An increase of 7 additional flights per week, totaling 14 flights per week, utilizing Airbus A300-600
  • Bangkok – Fukuoka : An increase of 1 additional flight per week, totaling 5 flights per week
  • Bangkok – Colombo : An increase of 1 additional flight per week, totaling 4 flights per week, utilizing Airbus A300-600
  • Bangkok – Lahore : An increase of 1 additional flight per week, totaling 4 flights per week


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THAI and Mae Fah Luang Foundation Organize Exhibition to Commemorate the Princess Mother

On 4 October 2000, Mr. Bhisit Kuslasayanon, President, Thai Airways International Public Company Limited, and Mr. Apilas Osatananda, Chairman of the Mae Fah Luang Foundation, presided over the opening ceremony of the “THAI’s Exhibition to Commemorate the Centenary Celebration of the Birth of Her Royal Highness Princess Srinagarindra the Princess Mother”. The exhibition was organized to commemorate the centenary of Her Royal Highness the Princess Mother, whom the United Nations Educational, Scientific and Cultural Organization (UNESCO) has recognized as a “Great Personality” in public science in the fields of education, applied science, and human, social, and environmental development as well as to promote her benevolence throughout the world.

The exhibition displays the Princess Mother’s royal biography and royal activities from the remembrance of Her Royal Highness Princess Maha Chakri Sirindhorn and Her Royal Highness Princess Galyani Vadhana Kromluang Naradhivas Rajanagarindra, which includes 5 topics as follow:

1. The Mahidol Family – HRH the Princess Mother’s royal biography on her childhood and the Mahidol family during their life overseas

2. The Mother of the Two Monarchs – The Princess Mother provided excellent care for her three children by raising them as ordinary people

3. Time is Valuable – HRH Princess Maha Chakri Sirindhorn told how the Princess Mother recognized the importance of time and spent it wisely such as making a cross-stitch while traveling on a helicopter

4. “Somdet Ya” (The Royal Grandmother) of the Thai People – The “Princess Mother’s Medical Volunteers (PMV)” was founded to provide comprehensive medical services to rural villages and officials attending their duties in remote areas of Thailand.

5. Doi Tung Development Project – The project was initiated by the Princess Mother to alleviate and prevent the depletion of natural resources. Owing to the efforts and determination of the Princess Mother, the living conditions of people in Doi Tung have markedly improved as well as the recovery of existing resources have become apparent.

The exhibition has been set up to promote the noble activities and achievements of the Princess Mother at THAI’s Bangkok Head Office and at 24 domestic airports around Thailand throughout October 2000.

In addition, the products from Doi Tung Foundation including textile, Mulberry Paper-made items, Arabica coffee, macadamia nuts, decorative plants, flowers, fresh fruits and vegetables were available on sale for the general public at THAI’s Head Office, Lobby Area of Building 1, during 4-6 October 2000. Admission is free of charge.


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THAI Supports the 33rd Annual Assembly of WACA

Mr. Tasnai Sudasna na Ayudhaya, Executive Vice President, Human Resources & General Administration, Thai Airways International Public Company Limited, and the President of Airline Club of Thailand, announced that the Airline Club of Thailand will host the 33rd Annual General Assembly of the World Airlines Clubs Association (WACA) during 8-14 October 2000, at the Lotus Pang Suan Kaew Hotel, Chiang Mai, Thailand. The official opening ceremony will take place on Monday, October 9, 2000, at 18:00 hours, and will be presided over by His Excellency Mr. Adisai Bodharamik, Minister to the Prime Minister’s Office, together with Mr. Pravit Sihsobhon, Governor of Chiang Mai, Mr. Pradech Phayakvichien, Governor of the Tourism Authority of Thailand. Over 400 participants, including representatives from approximately 80 airline clubs worldwide, members of the WACA Executive Committee, WACA delegates and observers are expected to attend the meeting.

Member countries of WACA alternately host the Annual General Assembly, which provides an opportunity for members to meet and exchange valuable ideas to further promote the tradition, culture, and tourist attractions of the host country. The meeting also helps strengthen relationship and cooperation amongst members and airlines.

Besides the formal discussion and report presentation of the club members, the Airline Club of Thailand has also organized special activities for the delegates, allowing them to gain first-hand experience of northern Thai culture, customs and cuisine. Visits to various heritage sites have also been included in the program.

The 33rd Annual General Assembly of World Airlines Clubs Association (WACA) will be organized under the joint cooperation of the Tourism Authority of Thailand, Chiang Mai Tourist Police, Airports Authority of Thailand, Hotel Association of Thailand, and airline representatives primarily being from Thai Airways International.


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Royal Orchid Plus Offers Special Bonus Mileage

Thai Airways International Public Company Limited offers special Bonus Mileage for THAI Royal Orchid Plus (ROP) members that reserve THAI flights via THAI’s web-site, www.thaiairways.com, during 1 October - 31 December 2000.

To gain “Bonus Mileage”, THAI passengers who hold ROP membership are required to provide frequent flyer membership number whenever they reserve flights on THAI’s Flight Reservations web-site. “Bonus Mileage” will be allocated to passengers only when they have completed their travel as reserved on-line, within 2 weeks after flying each sector.

The conditions for “Bonus Mileage” are as follows:

  1. Domestic passengers will gain “Bonus Mileage” at 200 points for travel in Royal Executive Class and 100 points for travel in Economy Class.
  2. Passengers travelling within the same continent will gain “Bonus Mileage” at 500, 300, or 200 points for travel on Royal First Class, Royal Executive Class, or Economy Class, respectively.
  3. For travel conducted on inter-continental routes, 500, 400, and 300 accumulated mileage points will be allocated to Royal First Class, Royal Executive Class and Economy Class passengers, respectively.
  4. Passengers travelling within European routes or routes to and from Australia and New Zealand will gain accumulated mileage of 500, 300 and 200 points for Royal First Class, Royal Executive Class and Economy Class, respectively.

THAI Flight Reservations, made via www.thaiairways.com is an option which allows greater convenience and comfort to passengers. This is an additional service that Thai Airways International offers as part of THAI’s Royal Orchid Plus frequent flyer programme. Members please stay tuned as THAI’s Flight Reservations offers special promotions on a regular basis. For more information, please contact the Royal Orchid Plus Center at telephone number 513-9911 or at facsimile 513-0222.


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THAI Hosts IATA Inflight Management 2000 Conference

Thai Airways International Public Company Limited hosted the IATA Inflight Management 2000 Conference on “The Role of Technology in Effective Inflight Management and Service Delivery On Board,” at the Royal Orchid Sheraton Hotel & Towers, in Bangkok, from 2 to 4 October 2000.

During the IATA Inflight Management 2000 Conference, Mr. Bhisit Kuslasayanon, THAI’s President, presented the keynote speech on “Modern Technology for Customer Satisfaction,” where he stated that, “The travel world now-a-days is enjoyed by an ever-increasing volume of global travellers. At the same time, airlines face greater challenges than ever before. Airlines today face the challenge of further improving efficiency of ground connections and working towards increased flight connectivity, in addition to the challenges of coming to grasp with modern technology and its vital role in airplane manufacturing.”

“Airline customers of today need more than good customer service; they require the added convenience and comfort that is made possible through modern technology. It is the state of technology, being offered by aviation manufacturers and technical products, for which airline customers are expressing a need as well as a demand. These are among the many challenges that airline operators are trying to meet,” Mr. Kuslasayanon further stated.

The purpose of the IATA Inflight Management 2000 Conference was to provide inflight services professionals with an overview of how to evaluate the impact of new technologies on their inflight product and how to ensure that cabin crew are properly equipped to deal with the new technological challenges in the aircraft cabin.

Over 150 participants from airlines worldwide attended the conference from the industry fields of inflight services, passenger services, customer services, cabin management systems, cabin crew management, crew training managers, and suppliers of inflight products and services.


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