THAI Press Release

THAI Announces Board Meeting Results

27 August 2003, Thai Airways International Public Company Limited held a Board of Directors’ Meeting, chaired by Mr. Thanong Bidaya, THAI’s Chairman, with the following results:

1. Progress on THAI’s Investment at Suvarnabhumi Airport

THAI’s Board of Directors approved the hiring of contractors (architecture and structure) for the 5 activities of THAI’s project at the Suvarnabhumi Airport, those being Aircraft Maintenance Center, Operations Center, Ground Equipment Services, Catering, and Cargo and Mail Services, with the selection based on bidding, as follows:

- Sahakarn Wisavakorn Company Limited as contractor for Ground Equipment Services for up to 577,500,000 baht.
- Shino-Thai Engineering and Construction Public Company Limited as contractor for Aircraft Maintenance activity for up to 1,295,000,000 baht.
- Ch. Karnchang Public Company Limited as contractor for Catering activity for up to 1,256,000,000 baht.
- S. Kanokewan Industrial Company Limited (Consortium) as contractor for Operations Center activity for up to 660,000,000 baht.
- SVK Joint Venture as contractor for Cargo and Mail Services activity for up to 875,500,000 baht.

Due to the high costs of construction, the hiring of contractors is considered to be  a major task with the company giving importance to selection of contractors based on skills and techniques, reliability, experience, tools and equipment, resources as well as good financial planning. The bidding for contractors was based on two criteria, technical and price proposals, with the selection of qualified candidates based on the terms and principles set forth by the company. The technical proposals had to be approved by the Selection Committee before consideration of the price proposals.

The hiring of SVK Joint Venture as contractor for Cargo and Mail Services activity is  higher than the estimated cost (796,246,590 baht) as initially announced due to the design consultant which consists of MAA Consultant Company Limited, Pacific Consultant International Company Limited, Pacific Consultant International (Thailand) Company Limited and Interdesign Company Limited, which calculated the estimated cost stating that after examination of the proposed bidding price, found it to be unstable. As a result, the set price should be increased by 11.61% or 888,702,846 baht. SVK proposed the lowest bidding price of 875,500,000 baht which is lower than the revised estimated cost. THAI’s Board of Directors then approved the hiring of SVK as the contractor for Cargo and Mail Services activity which is according to the purchasing regulations of the company.

2. Waiver of Bank Guarantee for Contract Farmers On  A Special Basis

THAI’s Board of Directors approved for the company to waive bank guarantee for contract farmers on a special basis for the purchase of raw materials for THAI’s Catering Services Department, in accordance to the Good Agricultural Practice (GAP) to improve the quality of agricultural raw materials as initiated in the agreement between THAI and Kasetsart University. It is expected that this will help Thailand’s
agricultural raw materials to reach high international standards as well as increase competition among farmers. These contract farmers are guaranteed by Kasetsart University as producers of raw materials which satisfy the GAP, with examination of
raw materials tested by Kasetsart University directly from the plantation. Consequently, THAI will benefit from receiving top quality raw materials, free from harmful chemicals and pesticides. The purchasing agreement between the company and contract farmers will ensure that all terms and conditions will be met.


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THAI Promotes “A Taste of Thai Fruits” to the World

Thai Airways International Public Company Limited (THAI) sponsored an exhibition and Thai Fruit festival  organised by Committee on the Follow-up of the Implementation of the Resolutions of the House of Representatives, which is  scheduled to take place on Friday 29 August 2003 at the Lertwanalai, Hilton International at Nai Lert Park, and will be presided over by Mr. Uthai Pimjaichon, Chairman of the Government House and Mr. Korn Dabharangsi, Deputy Prime Minister will be the Guest Speaker.  Some 1,000 dignitaries invited  are expected to join the event including Diplomatic Corps, local foreign chambers of Commerce, the expatriste community based in Thailand,
Commercial Counselors, Senior politicians from the government, Members of the Parliament,  Senators, representatives from public and private organisations, exporters as well as members of the local and foreign press.

Mr. Kanok Abhiradee, THAI’s President, said as the national carrier of Thailand, THAI has continued to promote the Thai identity to the world, for example the uniqueness of Thai manners and beautiful Thai silk, which is worn by THAI flight attendants, as well as the delicious Thai cuisine with health benefits served to passengers on board THAI’s international flights.  THAI is proud to be part of this event, helping to promote Thai fruits among worldwide consumers.

Visitors  will have a chance to try seasonal Thai fruits such as  durian, mangosteen, rambutan, longan, pomelo, pineapple,  coconut, jackfruit,and sala which can be used for  making a variety of Thai deserts and refreshments such as   ice cream sorbet, mousse,  cheese cake,  strudel,swiss tart, brownnie , upside down cake, puddings and  cookies.  Personnel manning each booth will  provide information on Thai fruits to
visitors.

The exhibition received strong support from both public and private sectors namely, Ministry of Foreign Affairs, Department of Agriculture Extension,  the Cooperative Promotion Department,  Department of Export Promotion, Tourism Authority of Thailand, Thai Tourism Industry, and THAI.  Other activities include fruit carving, cooking demonstrations and Thai classical music.

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THAI Launches its Suvarnabhumi Website

Thai Airways International Public Company Limited has designed a website on the airline’s investment project in Suvarnabhumi Airport, providing the public with information on THAI’s projects underway at the new airport.

ACM Narongsak Sangapong, THAI’s Executive Vice President for Special Projects, said that the airline has launched a website providing information about THAI’s investment project involving 6 airline activities at Suvarnabhumi Airport.  THAI’s Suvarnabhumi website is accessible on the front page of website www.thaiair.com or www.thaiair.info, featuring information about THAI’s 6 activities:  Cargo and Mail Commercial, Operations, Catering, Ground Support Equipment, Technical Services, and Customer Services.  Also available on the website is information about developments and progress regarding these activities, with updates provided on a regular basis, keeping the public informed.  THAI’s Suvarnabhumi website is linked to the websites of organizations concerned with Suvarnabhumi Airport, for example the website of the New Bangkok International Airport Company Limited (NBIA) and the Airports of Thailand Public Company Limited (AOT).

THAI, as the national carrier of the Kingdom of Thailand and as Thailand’s largest air carrier that utilizes the majority of airport space, has planned its investment project to involve all related functions.  By covering all areas concerned with operations at the new airport, THAI is able to ensure passengers that service provision at the new airport goes through smoothly and completely.  Establishment of THAI’s website
on its Suvarnabhumi Project supports the concept and vision of Suvarnabhumi Airport to become the leading center of air transportation that proves to be the largest and most modern in Asia.

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THAI Announces Nine Month Results and 3rd Quarter Results for Fiscal Year 2002/03

Thai Airways International Public Company Limited announced its nine month results for fiscal year 2002/03 (October 2002 to June 2003) and its third quarter results (April to June 2003), whereby the net profit for the nine months amounted to 7,023 million baht.

Mr. Kanok Abhiradee, THAI’s President, announced that THAI’s nine month result for fiscal year 2002/03 (October 2002 to June 2003) amounted to a total revenue from the sale of goods and the rendering of services of 96,936 million baht, with the profit from the sale of goods and the rendering of services of 11,234 million baht, a decrease of  416 million baht or 3.6 percent compared to the same period last year.  When other incomes and expenses were included, THAI achieved a net profit of  7,023 million baht, a decrease of  2,202 million baht compared to the same period last year.Therefore, earnings per share was  5.02 baht compared to earnings per share of  6.59 baht during the same period last year, a decrease of  1.57 baht per share when compared to the same period last year.

As for THAI’s operating result for the third quarter of fiscal year 2002/03 (April to June 2003), THAI earned a total revenue from the sale of goods and the rendering of services of  23,682 million baht and  loss from the sale of goods and the rendering of services of  2,519 million baht, with an effect from a decrease in revenue from the sale of goods and the rendering of services due to the SARS crisis.  When other
incomes and expenses were included, THAI accumulated a net loss of  1,273 million baht., or  net loss per share of  0.91 baht, compared to net profit 3,452 million baht or net  profit  per share of  2.47 baht during the same period last year.

Following the SARS crisis, THAI’s passenger traffic resumed rapidly back to normal.  During June 2003, THAI had a cabin factor at  62.3 percent, a increase from 54.8 and 52.9 percent in April and May 2003 respectively, and the airline anticipates that passenger traffic will continue to increase at a steady rate during the tourist peak season at the end of the year.

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THAI Signs Bilateral Agreement with Dalavia Far East Airways

15 August 2003, Thai Airways International Public Company Limited has entered into a agreement with Dalavia Airways,signifying the national airline’s entrance into the Far East Russia and encourage tourism to Thailand from that region.

THAI and Dalavia Airways have entered into a Bilateral Interline Traffic Agreement as well as a Special Prorate Agreement, which was signed by THAI’s Executive Vice President for Commercial, Mr. Tasnai Sudasna, and Deputy Director General of Dalavia Airways, and witnessed by  THAI’s President, Mr. Kanok Abhiradee.

Mr. Kanok said that Russia is a large emerging market which its geographical scope covers areas in Europe and Asia. The Interline Agreement signed today will be the effective commercial arrangements to accommodate the travelling demand between the two countries. The agreement between Dalavia Airways and THAI is expected to boost overall tourist arrivals from Russia which is currently around 70,000 visitors per year. THAI currently has bilateral interline traffic agreements with 3 Russian airlines; Aeroflot Russian Airlines, Siberia Airlines, and Vladivostok Air.

Mr. Tasnai said, "With the cooperation between the two airlines, there will be an increase in seat capacity to accommodate the expansion of tourism from Russia's far east to Thailand. Tourists will no longer have to rely on charter flights to visit Thailand, but can travel all year round simply by flying Dalavia Airways to either Seoul or Guangzhou  and connecting to a THAI flight. Visitors from Thailand travelling to
Khabarovsk can also make this connection in Seoul or Guangzhou.”

Dalavia Airways has its home base in Khabarovsk, a capital of Khabarovsk Krai Territory in Russia with a population of 700,000. It is operating scheduled flights to international routes such as Seoul, Guangzhou, Harbin, Niigata, etc.

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THAI Sponsors APEC SME Meeting

Thai Airways International Public Company Limited is one of the official sponsors of the upcoming APEC 2003 Meeting hosted by Thailand.On this occasion, THAI will participate by setting up an exhibition booth at the APEC SME Meeting, to be held from 7-8 August 2003 in Chiang Mai.  THAI will exhibit the following at its booth:  samples of SME products and products from the One Tambon One Product (OTOP) project that THAI proudly supports.

THAI’s President, Mr. Kanok Abhiradee, said that THAI is one of the official sponsors of the APEC 2003 Meeting. The related event, APEC SME Meeting, will benefit small and medium size enterprises in Thailand by helping them to develop their products to world class standards. THAI itself has been a supporter of SME and OTOP products since 2002, with the cooperation of the SME Promotion Office in the selection process. The products supported by THAI are divided into five categories: snacks, inflight sale items, passenger giveaways, raw catering materials, and products from THAI Shop.

Among the SME and OTOP snacks served on board THAI flights are khanom pia with different fillings, cashew nut cookies and khao taen song krueng, with more items under selection. The THAI Shop is also working closely with the SME Promotion Office to include OTOP products at its various shop branches.

Since 2 August 2003, THAI has placed a catalog of OTOP products on all its domestic flights so passengers may make product selections,place their orders in the comfort of the flight, and receive products by home delivery. This service is currently only available on domestic routes.

THAI’s exhibition booth at the APEC SME Meeting aims to aid in promotion and sales for local manufacturers, allowing the public greater access to local products, and promote  folk wisdom as well as quality local products to the rest of the world.

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THAI’s Catering Department Uses Electronic Bidding System for Food and Raw Materials

Thai Airways International Public Company Limited will organise  THAI’s Catering Department Food and Raw Materials Electronic Bidding according to the Catering Department’s Good Governance Policy 2003/2004, which will be opened by THAI’s President Mr. Kanok Abhiradee.  Pol. Gen. Charn Ratanatham, honorary advisor to the Transport Committee, and Mrs Pisamai Chandrubeksa, Managing Director of  THAI’s Catering Department also presided over the press conference opening the electronic bidding at  THAI’s Head Office on Vibhavadi-Rangsit Road.

 Mr. Abhiradee said that the event is in accordance with the 9th National Economic and Social Development Plan which urges  public and private sectors to place  emphasis on information technology for greater efficiency, transparency, and effectiveness, so that the country may progress towards becoming a modern information technology.  As the national carrier, THAI places great importance on this policy. Earlier this year, THAI carried out a trial bid utilizing an electronic system for the purchase of several items such as paper, office equipment, computers, and jet fuel. The system successfully decreased the budget by a substantial amount. The first electronic bidding was conducted on 31 January 2003, and was witnessed by Dr. Prommin Lertsuridej, Deputy Prime Minister.

 The electronic bidding process for food and raw materials for good governance  is a pilot project for THAI’s Catering Department by which information technology will be used to select raw materials used to prepare meals for THAI flights, customer airlines, the THAI airport restaurant, and  THAI’s catering operations. The same objective will be maintained, that is to support local agricultural products from small-size farming groups. THAI currently relies on local products for 70% of its total catering utilization.

 On this occasion, there will be three different groups of raw materials up for bid:   soy bean oil,  frozen prawns, and white rice. The lots are valued at THB 34 million baht and will be offered through the system of Pantavanij Group, a joint venture with six leading companies, namely Bangkok Bank, Siam Commercial Bank, Siam Cement, TelecomAsia, United Communication Industry, and CP Group. The bidding process will be conducted via internet by Asia-Freewill Company.

 Apart from helping THAI to buy high quality products from local producers for its operations, the electronic bidding system will enable the THAI’s Catering Department  to conduct all related activities with greater efficiency, such as price negotiations, price investigations, bidding,customer registration, and on-line purchasing. In addition, it will be time- and cost-effective for the company, since every step of the process
may be checked accordingly through the electronic system.


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THAI and TAT Woo Indian Travellers with Thai Night

Thai Airways International Public Company Limited, together with the Tourism Authority of Thailand, will be hosting “Thai Night” on the occasion of the Thai Government's Roadshow to India between 5-10 August 2003. Presiding over the event will be Deputy Prime Minister,Mr.  Korn Dabbaransi, with Deputy Minister of Transport,   Mr. Pichet Sathirachawal, also in attendance along with over 250 representatives from the public and private sectors from both India and Thailand. The event is aimed at promoting ties between the two countries in terms of economic ties as well as trade and investment.

According to Mr. Tasnai Sudasna na Ayudhya, THAI’s Executive Vice President for Commercial, the Thai Government has designated Mr.Dabbaransi to lead the Thai contingent to India to boost economic, trade, and investment ties between Thailand and India. On this occasion,THAI has the honor of organizing  “Thai Night,” together with the Tourism Authority of Thailand (TAT), in Delhi, Mumbai, Bangalore, and
Chennai.

Over 80 Thai business leaders from the government and private sectors, members of the Indian business community, travel agents, and media representatives are expected to attend the event, a total of approximately 250 guests.

In preparation for the expanding market for investment and business travel, as well as the tourism potential between the two countries, THAI will be introducing two new destinations in India, namely Chennai (Madras) and Bangalore. THAI currently operates to Kolkata (Calcutta),Delhi, and Mumbai (Bombay). The flight details for the Winter Schedule (between 26 October 2003 – 29 March 2004) are as follows:

Bangkok-Chennai-Dubai v.v.
Starting from this Winter Schedule on 26 October 2003, THAI will fly this route four times a week every Monday, Wednesday, Friday, and Sunday, utilizing Airbus 330-300 aircraft with a capacity of 305 seats; 42 in Business Class and 263 in Economy Class.
Outbound - TG 521 departs from Bangkok at 11:45 hrs. and arrives in Chennai at 13:35 hrs.(local time); departs from Chennai at 14:40hrs. (local time) and arrives in Dubai at 17:25 hrs. (local time).
Inbound - TG 522 departs from Dubai at 18:35 hrs. (local time) and arrives in Chennai at   23:50 hrs. (local time); departs from Chennai at 00:50 hrs. (local time) and arrives in Bangkok at 05:40 hrs.

Bangkok-Kolkata v.v.
THAI operates on this route three times a week every Monday, Wednesday, and Saturday with Airbus 330-300 aircraft which has a capacity of 305 seats; 42 in Business Class and 263 in Economy Class.
Outbound - TG 313 departs from Bangkok every Monday, Wednesday, and Saturday at 22:05 hrs. and arrives in Kolkata at 23:10 hrs. (local time).
Inbound - TG 314 departs from Kolkata every Tuesday, Thursday, and Sunday at 01:10 hrs. (local time) and arrives in Bangkok at 05:05 hrs.

Bangkok-Delhi v.v.
THAI operates daily flights to and from Delhi utilizing Airbus 330-300 aircraft, with a capacity of 305 seats; 42 in Business Class and 263 in Economy Class, and also Boeing 777-200 aircraft with a capacity of 358 seats; 55 in Business Class and 303 in Economy Class.
Outbound - TG 315 departs from Bangkok at 19:50 hrs. and arrives in Delhi at 22:45 hrs. (local time).
Inbound - TG 316 departs from Delhi at 00:05 hrs. (local time) and arrives in Bangkok at 05:35 hrs.

Bangkok-Mumbai (Bombay) v.v.
THAI flies to Mumbai three times a week every Tuesday, Thursday, and Saturday with Airbus 330-300 aircraft with a capacity of 305 seats;
42 in Business Class and 264 in Economy Class.
Oubound - TG 317 departs from Bangkok at 19:25 hrs. and arrives in Mumbai at 22:20 hrs. (local time).
Inbound - TG 318 departs from Mumbai at 23:40 hrs. (local time) and arrives in Bangkok at 05:20 hrs.

The Bangalore route is expected to be introduced in the Summer Schedule 2004 starting 28 March 2004.

Further information can be requested from all THAI ticket agents and at the THAI reservation office, or by contacting Tel: 0-2628-2000 and 0-2280-0060 24 hours a day.

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THAI Announces Board Meeting Results

30 July 2003, Thai Airways International Public Company Limited held a Board of Directors’ Meeting, chaired by Mr. Thanong Bidaya, THAI’s Chairman, with the following results:

1. THAI’s Extraordinary Shareholders’ Meeting no. 1/2003

THAI’s Board of Directors approved the date for the Extraordinary Shareholders’ Meeting no. 1/2003, which will take place on Tuesday, 2 September 2003 at 13.30 hours in the Auditorium at THAI’s Head Office, with the date established to close the register and suspend the transfer of shares for the purpose of determining the right to attend the meeting as from 12.00 hours on 14 August 2003 until THAI’s Extraordinary Shareholders’ Meeting no. 1/2003 comes to an end.  Agenda items include approval to proceed with the issuance and the offering of debentures in Thai baht and/or in other equivalent currency at not over THB 40,000 million baht within 5 years.

2. Refurbishing Business and Economy Class Seats for Boeing 777-200 Aircraft

THAI’s Board of Directors agreed to select Business and Economy Class seats for Boeing 777-200 aircraft in accordance to the proposal put forth by the Subcommittee on Purchasing Aircraft Seats, which negotiated the price as follows:  Economy Class seat selection was approved for Recaro Company and Business Class seat selection was approved for B/E Aerospace, based on two main points being technical qualities
and consideration of price.

The redesign of THAI’s Business and Economy Class seats on its Boeing 777-200 aircraft at a total of 8 aircraft of this type will be based on a new design created for increased passenger comfort.  The aircraft seat arrangement for Business Class will be 2-2-2, enabling seat recline at 165 degree.  Economy Class aircraft seat arrangement will be 3-3-3 replacing the 3-4-3 seat arrangement, making travel on this aircraft type
more comfortable and spacious for passengers.

The airline has begun to refurbish the seats on its Boeing 777-200 aircraft, with completion expected within 12-15 months.

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