THAI Announces Results of Executive Management Meeting

Thai Airways International Public Company Limited today held its Executive Management Meeting chaired by Mr. Virabongsa Ramangkura, THAI’s Chairman and Acting President, with following results:

1 Restructuring and renaming of the Finance and Information Department

The management has agreed to the following:

- Transfer of the Information Technology and Insurance Departments to report to the Business Development and Support Department.

- THAI’s associated activities namely the Catering Services Department and the Restaurant and Catering Services Department, previously reporting to the Investments & Subsidiaries Department have been transferred to the Catering Business Unit.

- THAI’s limousine service has been transferred to operate under the Customer Services business unit

The Management has agreed to rename the Finance and Information Department to as the Finance & Accounting Department.

2. Inaugural Flight to Chengdu and Opening of THAI’s Office

According to THAI’s policy of market expansion and to increase the airline’s competitive edge in order to generate revenue for the company, the management has agreed to inaugurate a three-flight-weekly operation on the route between Bangkok and Chengdu, the People’s Republic Of China, utilizing the Boeing 737-400 aircraft. The operation of this route is expected to commence on 1 January 2002.

Chengdu is a large city with various tourist attractions. Its location also acts as a gateway into Tibet and has become widely popular among travelers from Europe and America. As for the environmental aspect, Chengdu has a sanctuary for Panda Bears, which attracts attention especially from Thai and Japanese tourists.

It is expected that Chengdu will generate relatively high revenue for THAI. According to the study conducted by THAI’s Commercial Department, a 7 per cent increase in the number of passengers is forecast annually as well as 65 per cent cabin factor and 60 per cent load factor.

3. Bid for THAI’s Catering Excess

The Management has agreed to allow a bidding process for the excess food from the catering function. THAI’s Catering Services Department has sent Letters of Intent to 20 companies informing them of the bidding process. This is in accordance with the company’s policy to increase revenue.

4. Appointment of Working Group to oversee the contract-signing process with Amadeus

The Management has agreed to appoint a working group to oversee the contract-signing process with Amadeus Global Travel Distribution, comprising the following:

Mr. Wichit Suraphongchai – Chairman
Mr. Seri Chintanaseri – Advisor
Representative from the Commercial Department – working group
Representative from the Finance and Accounting Department - working group
Representative from the Legal Department - working group
Representative from the Information Technology - working group

5. Expansion of Puff & Pie

The Management has agreed to the opening of two additional branches of THAI’s own bakery house Puff & Pie. The 24th branch of Puff & Pie will be opened at the Institute of Dermatology, Medical Department in Bangkok and the 25th branch at Patong Hospital in Phuket. Currently, Puff & Pie generates approximately 200 million baht annual revenue for THAI. Both branches are expected to operate with profit within 6 months of opening.

6. In-flight Duty free sales

The Management has agreed to allow an open-bid process for the sale of in-flight duty free items from companies worldwide. Mr.Tasnai Sudasna, Executive Vice President Commercial has been appointed the Chairman of On-Board Duty Free Selection Committee in place of Mr. Suthep Suebsantiwongse, THAI’s Executive Vice President, Human Resources and General Administration Department.