THAI Announces Results of Board of Directors' Meeting

Thai Airways International Public Company Limited held a Board of Directors' Meeting, chaired by Mr. Somkid Jatusripitak, Finance Minister, Mr. Pracha Maleenont, Transport and Communications Deputy Minister, and Dr. Chai-anan Samudavanija, THAI's Chairman, with the following results:

1. Strategic Plan

The Board of Directors has unanimously agreed and approved the strategic plan for THAI submitted by the Management. The plan focuses on prioritizing main objectives in positioning THAI among leading carriers of this region within the next five years. The Government has ensured a full support towards the plan. The Finance Minister and Transport and Communications Deputy Minister gave many valuable recommendations on this issue and have suggested ways in which investors should be informed.

The Board of Directors has also approved the appointment of a Working Group to plan the restructuring of some parts of THAI into Business Units. The Working Group comprises of the following:

Chairman:

Mr. Srisook Chandrangsu - Vice Chairman of THAI's Board of Directors

Members:

Mr. Somchai Boonnamsiri - Director

M.L. Subhasidhi Jumbala - Director

M.R. Supadis Diskul - THAI's Vice President, Special Project

Mr. Kaweepan Roungpaka - THAI's Vice President, Finance

The time frame to submit the Working Group's plan as well as the Strategic Plan is within one month. The Working Group remains a part of THAI but has been set up to allow greater operational flexibility.

2. Agreement between THAI and the Ministry of Finance to Set Up Work Performance Evaluation Indicators

The Board of Directors has approved the Work Performance Evaluation Indicators agreed between THAI and the Ministry of Finance with assistance from TRIS, a consultant to the Finance Ministry.

Following Cabinet approval dated 20 June 1995 of the application of state enterprise's work performance evaluation indicators to further enhance the operational efficiency, the supervision of development and progress of state enterprise shifts from operational control to evaluation process. The Ministry of Finance has also suggested the inclusion of incentive programs to reflect work performance starting from 2001 financial year.

Six main parameters have been established to evaluate the company's performance namely financial efficiency, physical efficiency, service efficiency, quality of the state enterprise plan, and management and supervision quality. The goals will be determined by THAI with three variables:

a. Indicators - established to:

- evaluate major performance

- reflect objectives and targets of the company

- be easily understood

- be easily followed up and arranged

- be under close control and supervision of the Management.

b. Weight which has been assigned according to the importance of work performance. The total will be equal to 100 per cent.

c. Target. This is divided into five distinct levels according to its quality

As for the incentive programs, Thai Airways International is a state enterprise, which has been categorized to compete with private companies. More flexibility will be granted to various work units including storage, budget, finance and account, organization, management of personnel, management of salary, employment fees and compensation, setting up of subsidiary companies and annual bonus for members of the Board.

3. Appointment of THAI Management

The Board of Directors has approved the appointment of THAI management to fill in the current posts, which are vacant and to replace those who will be retiring this September as follows:

- Captain Udomchai Nandamanop, Vice President, Flight Operations, was appointed Executive Vice President, Operations

- Mr. Veravat Chotiros, Vice President, Industry Relations and Commercial Support and Acting Vice President, Planning and Government Relations, was appointed Vice President, Corporate Planning and Government Relations

- Mr. Prasert Khlonwathanakith, Vice President, Subsidiaries and Investment, was appointed Vice President, Special Projects

- Captain Veerachai Sripha, Deputy Vice President, Aviation Personnel Development was appointed Vice President, Aviation Personnel Development

- Mr. Kawin Asvarchatroj, Acting Vice President Cargo and Mail Department, was appointed Vice President, Cargo and Mail Department

- Mr. Doosdee Smuthkochorn, Director, Office of the Vice President Special Projects and Acting Vice President Government Relations, was appointed Vice President Government Relations

- Captain Apinant Sumanaseranee, Deputy Vice President, Flight Operations, was appointed Vice President, Flight Operations

- Mr. Santi Purivetkunakorn, Director, Traffic and Sales Information Services, was appointed Vice President, Accounting

- Mr. Tongnoi Thongcheu, Regional Director Europe and Africa, was appointed Vice President, Industry Relations and Commercial Support

- Mr. Sathok Vorasarin, Director, Inflight Catering Management, was appointed Vice President, Subsidiaries and Investment

The appointment will take effect as of 1 October 2001 onwards.