THAI Announces Results of Board Meeting

Today (28 February 2002), Thai Airways International Public Company Limited held a Board of Directors’ meeting, which was chaired by Mr. Virabongsa Ramangkura, THAI’s Chairman, with the following results:

1. Selection of THAI’s President

The Board of Directors passed a resolution to select Mr. Kanok Abhiradee, President, Small Industry Finance Corporation, to the position of THAI’s President. Mr. Kanok Abhiradee was one of the three qualified applicants whose names were submitted to the Board of Directors by the Selection Committee, chaired by Mr. Srisook Chandrangsu, Transport and Communications Permanent Secretary.

The selection process was conducted in accordance with the Standard Quality of Directors and State Enterprise Employees Act 2000 (Issue No. 4), Clause 8. During 24 January to 8 February 2002, THAI’s Selection Committee, announced recruitment of THAI’s President. Seven applicants were qualified for the position and were called for an interview on 14 February 2002. The Selection Committee concluded the selection process and submitted the results to the board for decision and approval.

2. The Management Code of Conduct

The Board of Directors has appointed a working group to establish the company’s Code of Conduct for management, staff and shareholders. The Code of Conduct will act as a standard guideline for business performance to ensure growth and credibility of the company.

3. Management Power and Benefits for Managing Director

Following the organizational restructuring of THAI, spinning off supporting business units from core airline business, each of the business units is required to report directly to their respective Managing Director. The Board of Directors has approved the following:

3.1 The status of Managing Directors of the supporting business units namely Cargo & Mail, Catering, Technical Services, Customer Services, and Ground Support Equipment Services is equivalent to that of a Vice President and is entitled to similar benefits from the company. The Managing Director of Technical Services who also holds the position of Executive Vice President is entitled to similar benefits from the company at the level of Executive Vice President. This takes effect from 1 December 2001.

3.2 The Business Units Executive Board (BEM) has the power to consider and approve any activities of the five business units similar to that exercised by the Executive Management Meeting (EMM) of the core business, effective as of 28 February 2002.

4. Contract with Kinnaree Magazine

The Board of Directors acknowledged the proposed conditions to extend the contract and benefits submitted to THAI from Kinnaree Magazine and Magic Production Company as follows:

4.1 A three-year contract during the period 1 March 2002 to 28 February 2005. The March issue of Kinnaree magazine will be delivered to THAI on 15 March 2002

4.2 THAI holds full rights to off load the magazine in any month if THAI finds the articles inappropriate and not in accordance with the airline’s policy.

4.3 A six-month notice is required if either of the two parties decide to terminate the contract.

4.4 The Magic Production Company has agreed to offer THAI seven per cent of its monthly advertising charges or 100,000 Baht each month, whichever in greater.

5. Mutual Separation Program

The Board of Directors has approved 430 employees who applied for the mutual separation program that has been introduced to regulate the size of the organization in order to boost company’s competitiveness. THAI has allocated a budget of approximately 800 million Baht for this program.

6. Amadeus Partner Agreement

The Board of Directors has agreed to extend an Amadeus Partner Agreement between Thai Airways International and Amadeus Global Travel Distribution S.A. which is scheduled to expire on 1 March 2002, following the proposal made by the Working Group to Oversee the Contract-Signing Process with Amadeus, chaired by Mr. Wichit Suraphongchai.

Thai Airways International has adopted the Amadeus system since 1992. Amadeus is a comprehensive CRS/GDS Computer Reservations Systems or Global Distribution System, supporting the airline’s operations, which covers major markets around the world and provides for the best interest for the company.