THAI Press Release

 

THAI Resolves Dispute Between Pilots and Union

Acting BKKDD/ Mr. Somchainuk Engtrakul, Acting President of Thai Airways International Public Company Limited, revealed that a common agreement has been reached between THAI's pilots and Thai Airways International Union, the employee union.  As for wording featured in the union's flier, it was not stated whether either party was right or wrong but requested all those concerned not to view matters in a negative light. As well, it stated that THAI's pilots are of high quality and have received worldwide recognition.  In addition, it was mentioned that THAI's pilots earn lower salaries when compared with other air carriers the highest salary earned by THAI pilots being approximately THB 200,000 baht per month.  As for THAI cabin crew or employees with other responsibilities, their salary is considerably lower than those at other air carriers.  As a result, THAI's Management is taking this matter under consideration for future improvements, to coincide with plans to revise the airline's organizational structure.

As the airline industry is currently experiencing a crisis with industry-wide impact, particularly with regard to insurance coverage and jet fuel prices, both of which have increased substantially, both THAI pilots and the union have come to an agreement to resolve their previous differences.  Both parties have agreed to the work towards the airline's common good, especially in the face of difficulties being experienced by the airline industry overall.  THAI's Management has called for a meeting to assess the impact on the travel and airline industry resulting from the global crisis, so that further measures may be implemented.

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Bavarian Menu on Board THAI's Flight

THAI offers a fine selection of traditional Bavarian "Schmankerl" on board flights between Bangkok and Germany to celebrate the 168th Munich Oktoberfest - The world's largest fun fair even above the clouds.

Between 22 September and 7 October 2001, passengers travelling on board Thai Airways International between Bangkok and Germany may enjoy traditional Bavarian specialties to celebrate the world famous Oktoberfest.

The menu served on board THAI's flights departing from Frankfurt for First and Business class passengers will include Bavarian "Weisswurste"(white veal sausages) with salt pretzels, roast pork knuckles in their own juice with potato dumplings and Bavarian cabbage, followed by a dessert of fried apple rings with a sprinkling of cinnamon and sugar, bathed in vanilla sauce. The selection of on board beverages will also include "Erdinger Weiss Beer".

Royal First Class passengers travelling on THAI's flights departing from Munich can enjoy an appetizing choice from a variety of Bavarian regional culinary favourites-canapes with a generous spread of O'batzda (creamed Camembert mixed with onions, paprika and butter); or "Leberkase" (ham and pork liver meatloaf), grandma-style bread soup, smoked fillet of trout with a mango-ginger dressing, roast stuffed veal breast accompanied by potato dumplings as well as a delicious dessert of apple beignets topped with vanilla sauce and vanilla ice cream.  THAI also offers Oktoberfest beer on demand to go with these blue and white Bavarian food favourites.

For this coming winter flight schedule, Thai Airways International offers 14 weekly non-stop flights from Germany to Bangkok, including ten flights from Frankfurt and four flights per week from Munich. Thai Airways International and Lufthansa also offer a total of 24 weekly code-share flights from Germany to South East Asia.

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Transport and Communications Minister Meets THAI Management

Bangkok ---12 September 2001, Today, Mr. Wan Mohummad Nor Matha, Transport and Communications Minister, visited Thai Airways International and met with the airline's Management team to set guideline policies for THAI as follows:

1. THAI should adopt a more proactive attitude in all areas of
operations

2. THAI Management and employees should work closely together to
strengthen the airline's image in areas including:

  • THAI as the national carrier of Thailand which helps generate a
    substantial amount of national revenue
  • Promote Thailand as an aviation hub of the Southeast Asian region
  • Promote and support Thailand's travel and tourism industry following
    the government policy to encourage overseas tourists to travel to
    Thailand and generate revenue from their spending. This may be done
    through the open sky policy and close cooperation between THAI and other domestic carriers

3. The privatization of THAI should help stimulate the country's
economic performance

4. THAI's new Board of Directors should again review the airline's Long
Term Planning so that it may be effectively implemented

Following the recent appointment of Mr. Wan Mohummad Nor Matha,
Transport and Communications Minister, made by Prime Minister Thaksin
Shinawatra, to oversee the operations of Thai Airways International, the Minister said that his duty was to set guideline policy for THAI's operations. The airline's Board will implement these guidelines and the Management will exercise them within the organization in order to achieve the common objectives. The Minister also emphasized on professionalism and transparency, confirming that that there should be no political interference, which may disrupt the operations of THAI in the future.

THAI's Management has made a summary of THAI's financial operations and
the situation concerning THAI's flights bound for the US which have been  affected as a result of the recent terrorist attack on US soil.

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THAI Announces Results of Board Meeting

Bangkok, 6 September 2001 --- Thai Airways International Public Company Limited today held its Board of Directors’ Meeting, chaired by Dr. Chai-anan Samudavanija, THAI’s Chairman, with the following results:

1. Appointment of Acting THAI’s President

The Board of Directors has agreed to appoint Mr. Bhisit Kuslasayanon as THAI’s Advisor, effective as of 7 September 2001. THAI’s Board also appointed Mr. Somchainuk Engtrakul, THAI’s 2nd Vice Chairman and Permanent Secretary, Ministry of Finance, as Acting THAI’s President, with effect as of 7 September 2001.

2. Resignation of the Board of Directors

THAI’s entire Board of Directors has submitted their resignation letters to resign from their posts.

THAI’s Acting Board of Directors has called an extraordinary shareholders’ meeting to appoint new Board members, which is scheduled to take place on 5 October 2001, at 13:30 hours, in the Auditorium of THAI’s Head Office, on Vibhavadi Rangsit Road. Registration for transfer of shares, necessary in order to qualify for attendance at the shareholders’ meeting, will be closed as of 21 September 2001, at 12:00 hours.

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THAI Launches Code-share Flight with Ansett

From 6 September 2001, Thai Airways International Public Company Limited will begin code-share flights with Ansett Australia Limited (AN). THAI will codeshare on AN services to various domestic points within Australia i.e. Canberra, Habart, Launceston, Adelaide, Gold Coast, Cairns and Townsville and AN will codeshare on THAI services between Bangkok London, Brisbane, Melbourne, Sydney, Perth and Phuket.

The co-operation between the two airlines will provide better connecting services for their passengers between their respective international and domestic networks. As partners, the two carriers also agreed to a joint sales promotion program.

THAI currently operates 24 weekly flights between Bangkok, Melbourne, Sydney, Perth and Brisbane utilizing B747-400, B777-300, A330-300 and MD-11 aircraft. AN offers B737, A320 and B767 aircraft on domestic services within Australia.

Mr. Tasnai Sudasna na Ayudhaya, THAI’s Executive Vice President, Commercial, said that the market strength, existing and extensive resources in Australia of Ansett will provide an excellent opportunity for THAI through this Code Share Agreement, to be more competitive and more cost effective serving our customers to and fom Australia.

 Boarding Gate Announcement

TG989-AN8489/7September 2001

Bangkok-Melbourne

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Good evening, Ladies and Gentlemen :

Thai Airways International and Ansett Australia would like to welcome you on board our first codeshare flight TG989 and AN8489 to Melbourne. We are pleased to inform you that THAI and Ansett have recently entered a codeshare agreement starting from 6 September this year onwards. The cooperation between the two airlines will provide better connecting services and increase cost effectiveness for our passengers on mutual international and domestic networks. Today marks an official launch of the codeshare operations on the route between Bangkok to Melbourne and we have a pleasure to invite Mr. Vasing Kittikul, THAI’s Vice President Sales and Distribution and Mr. Alstair Fernie, Ansett’s Vice President Alliance, to cut the ribbon to celebrate this special event. As our valued customers, we hope you will enjoy our Royal Orchid Service and wish you a pleasant flight to Melbourne. Thank you for your attention.

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THAI Announces Results of Board Meeting

Bangkok, 29 August 2001 --- Thai Airways International Public Company Limited today held a Board of Directors' Meeting, chaired by Dr. Chai-anan Samudavanija, THAI's Chairman, with the following results:

1. Appointment of Additional Vice Chairman to THAI's Board of Directors 

THAI's Board of Directors has appointed Mr. Thanong Bidaya as the fifth vice chairman or Vice Chairman 5 under THAI's Board of Directors. 

2. Appointment of THAI's Long Term Plan Committee 

As the Board of Directors has approved of THAI's corporate strategy, which will be included in the airline's long term plan, it was decided that a Long Term Plan Committee be established, the committee members being appointed as follows:

  • Mr. Thanong Bidaya Chairman Member of the Board, Thai Airways International Public Company Limited
  • Mr. Supote Kumpeera Committee Member Director-General, Department of Aviation
  • Mr. Sommai Pasri Committee Member Representative, Ministry of Finance 
  • Mr. Surananda Wongvittayakamjon Committee Member Assistant Secretary-General, Office of the National Economic and Social Development Board
  • THAI's Executive Management Committee Member 
  • Mr. Veravat Chotiros Committee Member & Secretary Acting Senior Vice President, Corporate Planning and Government Relations, and Vice President, Industry Relations and Commercial Support
  • Mrs. Sang-Ngun Pornpaiboonstid Committee Member Vice President, Corporate Planning

3. Appointment of THAI's Spokesman

The Board of Directors has agreed to appoint Mr. Vithit Leenutapong, a member of THAI's Executive Committee, as the Board of Directors' Spokesman. Mr. Leenutapong will be directly responsible for announcing policy-related news and introducing communication strategies to target groups in the most effective manner. This is to create better understanding and encourage good cooperation from all concerned as well as promote a positive image of THAI and the Board of Directors. His role concerns news solely related to THAI's policy, not to daily operations. This is to ensure that all communications are in line with THAI policy and directed to the target groups. 

Mr. Leenutapong is currently a member of THAI's Executive Committee and Chairman of THAI's Communication Task Force, which made him the most suitable choice for the Board of Directors' Spokesperson.

Spokesman of the Board of Directors Role and Responsibilities:
1. Convey the policy of the Board of Directors to the general public, journalists, staff, shareholders and government agencies.

2. Ensure that the message conveyed from the Board of Directors is in line with overall company policy and contributes to the  positive image for the airline and the Board. 

3. Analyze and select news items and issues for release to the general public, journalists, staff, shareholders and government agencies. 

4. Liaise and coordinate with the Board of Directors, Public Relations Department, Public Information Department and related departments to ensure that the news items and issues released by the Board are in line with overall company policy and are uniformly conveyed throughout the organization and to the public.

Scope of Responsibilities:
The responsibility of the Spokesman of the Board of Directors will cover announcements following regular monthly Board Meetings or whenever the Chairman deems it necessary for the Board to issue an official statement. 

Responsibility will cover matters concerning strategic company policy, but will not include operational matters or crisis communications.

The authority of the Spokesman will be determined later.

4. Establishment of THAI's Corporate Strategy Plan

THAI's Board of Directors has approved of the airline's corporate strategy, the most important 5 strategies being as follows:

1. Supportive Strategy
2. Business Strategy
3. Financial Strategy
4. Operation Strategy
5. Good Governance

5. Organizational Restructuring

THAI's Board of Directors has approved of plans to reorganize the company's operations, in the initial phase, in order establish Business Units - as proposed and decided by THAI's Organizational Restructuring Committee, effective as of 1 November 2001 onwards. The establishment of Business Units within Thai Airways International is in accordance with THAI's Business Strategy.

In addition, THAI's Board of Directors has established a special committee, to be responsible for organizing THAI's Business Units in accordance with the Action Plan, with the special committee members being as follows:

1. Dr. Srisook Chantrangsu Vice Chairman 1 Chairman
2. M.L. Subhasiddhi Jumbala Member of the Board Committee Member
3. Mr. Somchai Boonnamsiri Member of the Board Committee Member
4. Mr. Vithit Leenutapong Member of the Board Committee Member
5. M.R. Supadis Diskul Management Representative Committee Member
6. Mr. Kaweepan Ruangpaka Management Representative Committee Member

All of the employees under the Business Units will remain THAI employees and receive the same salary and employee benefits that they previously received prior to Business Unit establishment.

6. Refinance of Current Loans Due in 2001

THAI's Board of Directors has approved of the airline's plans to refinance current loans  that would be due in 2001, at approximately 23,000 million yen, in order to reduce the company's financing costs.  
The Samurai Bonds will be issued by Thailand's Ministry of Finance and lent to THAI on the same basis as previously issued.

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THAI Announces Action Resulting from Flight TG401

Bangkok, 27 August 2001 --- Thai Airways International Public Company Limited held a press conference, chaired by THAI's Chairman, Dr. Chai-Anan Samudavanija, Mr. Bhisit Kuslasayanon, THAI's President, and Mr. Suthep Suebsantiwongse, Executive Vice President, Customer Service, to announce that members of THAI's Management have been called to discuss the recent conflict between THAI pilots and the Inflight Manager that resulted in the delay of THAI's flight TG401 on 25th August. This is to prevent the reoccurrence of such incidents in the future. 

On 25th August 2001, THAI's flight TG401 bound for Singapore was delayed for four hours. The incident was said to have been the result of conflict between the THAI Employee Union and THAI Pilots. A representative from the union was said to have been on board the flight. 

Dr. Chai-Anan said that, "THAI's Management and staff would like to apologize to all passengers on board flight TG401. The Management and staff concerned took good care of all passengers on board that flight while at Bangkok International Airport and on arriving in Singapore." 

The meeting between the Management and both parties has brought a common understanding of the miscommunication resulting from the release of a document by the THAI Employee Union. Thai Airways International reaffirmed that THAI pilot standards are in full compliance with all international standards and regulations. 

Thai Airways International assures all passengers that the airline will operate its normal flight schedule and there will be no reoccurrence of such an incident. 

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Star Alliance Projects Boost THAI Sales 
Convention Plus, Corporate Sales, Flifo Project and Booking Class Alignment provide easy tools for sales force to gain access to wide ranging Star Alliance partner network at much less cost 

Since the launch of Star Alliance in 1997, various projects were formed to help boost sales at each member carrier including Thai Airways International. These projects provide easy tool to the sale force to gain access to a wide-ranging Star Alliance partner network by aligning THAI system with those of partner airlines, at much less cost than if each member developed its own system. 

These projects include Convention Plus, Corporate Sales, Flifo Project and Booking Class Alignment. 

Convention Plus 
A joint Star Alliance global meetings, conventions and exhibition (MICE) product which is being developed for this growing market. This should help Thailand which has world class facilities, and Bangkok as excellent hub, for this purpose, using various THAI and Star Alliance partner flights. 

Corporate Sales 
Development of mechanism whereby Star Alliance partners cooperate with each other to provide various aspects of travel arrangements for corporate giants with various types of services which should benefit THAI by gaining access to high yield traffic through cooperation with Star Alliance partners. 

Flifo Project 
To provide THAI and Star Alliance agents access to operational flight information for all Star Alliance operating flights. 

Booking Class Alignment 
Will provide easy access through alignment of booking classes and fare products for THAI customers. 

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THAI to Launch More Code Share Flights with Star Alliance Partners 
Code share flights help generate substantial revenue on THAI and allow Thai passengers access to key European and US destinations. 

Thai Airways International Public Company Limited announced plans to team up with more Star Alliance partners to expand THAI’s network to more cities in Australia, New Zealand and North America. Negotiations have recently been concluded between THAI and Ansett to arrange code share flights to cover more Australian and New Zealand destinations and Air Canada to connect THAI European gateways with major North American cities. Code share flights help generate substantial revenue on THAI and allow Thai passengers access to key European and US destinations.  Currently, THAI operates numerous code share flights with Star Alliance partners on both domestic and international routes as follows: 

THAI and Lufthansa 
The code share operations between Bangkok, Frankfurt and Munich commenced in 1995. THAI also has a number of code share flights on Lufthansa beyond these points to domestic cities in Germany and key European and US destinations. Lufthansa also has code share on THAI flights beyond Bangkok to key domestic cities as well as major THAI Asian and Australian destinations.  By October 2001, THAI and Lufthansa plan to further strengthen this cooperation to be on a joint venture basis, with both airlines sharing cost as well as revenue on flights between Bangkok and Frankfurt and Bangkok and Munich. 

THAI and Scandinavian Airlines 
THAI and SAS launched their extensive code share flights in 1996, from gateway to gateway between Bangkok, Copenhagen and Stockholm and beyond to northern European destinations. 

THAI and United Airlines 
Currently, THAI operates daily flights between Bangkok and Los Angeles. United Airlines is able to feed passengers from many key United Airlines hub to connect this daily flight, in addition to the code share flights between Bangkok, Taipei and San Francisco.  

THAI and All Nippon Airways 
In December 2000, THAI implemented 18 weekly code share flights with ANA between Bangkok and Tokyo.  

THAI and Lauda Air 
Code share flights between THAI and Lauda Air commenced on 1st May 2001 between Bangkok and Vienna, using Lauda aircraft. 

Currently, there are 15 carriers in Star Alliance, namely Air Canada, Thai Airways International, United Airlines, Scandinavian Airlines, Lauda Air, Austrian Airlines, Tyrolean Airways, British Midland, All Nippon Airways, Lufthansa, VARIG, Ansett Australia, Air New Zealand, Singapore Airlines and Mexicana Airlines. 

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Exclusive Offer for THAI’s Royal Orchid Plus Gold Members 

Thai Airways International Company Limited celebrates the 8th anniversary of THAI’s Royal Orchid Plus (ROP) by offering free tickets for ROP gold card members to join attend the 3rd International Arts and Music Festival. 

This special privilege is applicable to ROP gold members residing in Thailand. Seven thousand miles accrued may be exchanged for one ticket to attend any one performance at the 3rd International Arts and Music Festival. Each member may exchange the mileage for up to four tickets. Tickets are available for oOnly 100 members may be accepted at each set of a performance. 

Thursday, 6 September 2001 - “Moldova Opera House” from the Soviet Union 
Friday, 7 September 2001 - “Moldova Opera House” from the Soviet Union 
Wednesday, 12 September 2001 - “Swan Lake Classical Ballet” by Moscow State Classical Ballet from the Soviet Union 
Friday, 14 September 2001 - “Creation of the World”, modern ballet by Moscow State Classical Ballet. 
Friday, 28 September 2001 - “Kiss of the Spider Woman”, Thai Broadway Show, directed by Yutthana Mookdasanith. 

For more information and seat reservation, please contact Tel: 02-5451883 and 02-5451722, between Monday to Friday during 8:00AM-5: 00PM. 

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Results from THAI’s Strategic Formulation Seminar

19 August 2001, Thai Airways International Public Company Limited held a press conference presided over by Finance Minister Dr. Somkid Jatusripitak, Deputy Minister of Transport and Communications Mr. Pracha Maleenont, THAI’s Chairman Dr. Chai-anan Samudavanija, and THAI’s President Mr. Bhisit Kuslasayanon, with results of the airline’s Strategic Formulation Seminar being as follows. The press conference and seminar were held at the Dusit Resort and Polo Club.

THAI organized the Strategic Formulation Seminar for intended purpose of formulating THAI’s corporate strategy, which will be included in the airline’s long term plan. Participating in the seminar were members of THAI’s Board of Directors, Executive Committee, and Management. In addition, THAI invited representatives from theTourism Authority of Thailand (TAT), the New Bangkok International Airport Company Limited (NBIA), and the Ministry of Finance to participate in the seminar. 

As a result of the seminar, it was concluded that five “corporate strategies” are vital to THAI’s strategic planning and implementation, described below:

1. Supportive Strategy
As the national carrier of the Kingdom of Thailand, THAI will further strengthen its level of assistance in supporting promotion of Thailand’s image and reputation. This includes support of high quality products and services manufactured and originating in Thailand. This is of special importance since THAI serves as a “gateway” into Thailand or initial passenger contact point for travel to and from Thailand.

2. Business Strategy
It was agreed that THAI would continue to stress the importance of its route structure as part of the airline’s market development, with Bangkok as a regional aviation hub being imperative. As well, the importance of growth through partnership was  emphasized, being attainable through THAI’s multilateral agreements via Star Alliance, of which THAI is a founding member, a partnership that remains vital to THAI’s business strategy. In addition, maintaining and furthering bilateral agreements remains vital to THAI. Part of the airline’s business strategy also includes plans for the airline’s reorganization, with a proposal to establish business units.

3. Financial Strategy
This strategy reflects the intent to further strengthen THAI’s financial base and investments, in preparation for THAI’s forthcoming initial public offering (IPO) as part of the second phase in the airline’s privatization. Therefore, the airline’s financial structure and accounting procedures will be aligned to international standards, with the intent to decrease THAI’s debt to equity ratio.

4. Operation Strategy
It was concluded that THAI would work towards further improvements in the airline’s products and services, continuing to meets passenger needs and ensure even higher levels of customer satisfaction. For example, an operation strategy for THAI is to continually stress the importance of maintaining flight on-time performance and establish performance measurement of operation standards.

5. Good Governance
The importance of good governance and corporate transparency within the airline’s organization was stressed as being vital to THAI as part of its corporate strategy. By these means, increased levels of professionalism in airline management were deemed important, without government influence. In addition, internal audits were proposed and performance evaluations would be conducted among all THAI employees.

In conclusion, consideration was made concerning Thai Airways International’s proposal to have a vested interest in the construction of the Suvarnabhumi Airport through an investment in the New Bangkok International Airport Company Limited (NBIA). This intended investment in Suvarnabhumi Airport would be pursued with the purpose of attaining optimal investment benefits and without creating a financial burden upon the company. 

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