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 the following results:

1. Approval of Terms of Reference (ToR) to Select Inflight Duty Free Sales Company

THAI's Management approved the draft Terms of Reference (ToR), which will be used in selecting an experienced and reputable company specializing in inflight duty free sales, to replace King Power Onboard and Services Limited (KPO) whose contract will expire in March 2002.

The Inflight Duty Free Selection Committee is chaired by Mr. Tasnai Sudasna, THAI?s Executive Vice President for Commercial.

THAI stipulated the following measures for bidding inflight duty free companies:

- The selected bidding company must contract with THAI for three years.

- Bidding companies must sell products that are duty free and of international standard, and must achieve at least USD 2.5 million dollars worth of sales per year, while sales must increase by 10 percent per year.

THAI will begin to announce the Terms of Reference (ToR) for selection of an inflight duty free sales company on 3 December 2001 with advertisements published in Thailand and overseas. The final day for interested parties to submit their interest in bidding is set for 13 December 2001, the last day for proposal submissions being on 4 January 2002, and selection of the winning inflight duty free sales company to take place on 22 January 2002.

2. Adjustments to Flight Schedule Due to Effects of 11 September 2001 Terrorist Attacks

THAI's Management approved implementation of the following adjustments to the flight schedule and aircraft types used on certain sectors, to cushion the effects of the 11 September 2001 terrorist attacks:

1. The Management approved the decision to change aircraft types on flight Bangkok-London v.v., replacing the Boeing 747-300s with Boeing 747-400s. THAI's Boeing 747-300s normally used on this route will be utilized on the Bangkok-Sydney-Auckland v.v. route instead, the aircraft alteration being initiated in order to increase the cargo payload on the Bangkok-London v.v. route.

2. The Management approved the decision to change aircraft types and increase flight frequency on flights routed Bangkok-Delhi v.v., from Airbus A330-300 operating seven flights per week to be replaced with Boeing 777-200/300 aircraft at six flights per week. This aircraft has the same amount of passenger seating capacity but is capable of carrying more cargo payload, which will increase profitability while decreasing expenses. The Airbus A330-300 normally used on this route will be utilized on the Bangkok-Hong Kong v.v. route instead.

3. The Management has increased flight frequency on the route

Bangkok-Dubai v.v. from three flights to four flights per week, effective as of 16 December 2001, due to increased passenger traffic.

4. As a result of the terrorist attacks on America, confirmed advanced passenger bookings on the route Bangkok-Los Angeles v.v. comprise only 40 percent of all advanced bookings made through to March 2002.

Therefore, THAI has decided to decrease flights from six flights per week to operate three flights per week. THAI will utilize the Boeing 747-400 aircraft, previously flown on the cancelled Los Angeles flights on the route Bangkok-Sydney-Melbourne v.v. in lieu of MD-11 aircraft.

The MD-11 aircraft will be utilized on the route Bangkok-Paris v.v., replacing Boeing 747-400 aircraft. THAI will also increase flights on the route Bangkok-Osaka v.v. from four flights per week to operate daily, these flight frequencies and aircraft utilization plans taking effect as of 16 January 2002 onwards.

3. Preparations to Open New Destination, Chengdu THAI's Management has approved that ground operations will be established in Chengdu, China.

The two parties to provide ground services to THAI in Chengdu are: Chengdu Shuangliu International Airport (CSIA) which will provide ramp and cargo handling as well as flight operations services and China Southwest Airlines (SZ) which will provide passenger and technical handling. Investment for equipment to be used at THAI's new station in Chengdu amounts to 1,130,000 baht.

THAI will operate on the route Bangkok-Chengdu v.v. three flights per week on Mondays, Wednesdays, and Fridays, utilizing Boeing 737-400 aircraft, effective as from 1 January 2002.

4. THAI's Second Aircraft Maintenance Center in Utapao Receives FAA Certification

THAI's Second Aircraft Maintenance Center in Utapao recently received an Air Agency Certificate from the Federal Aviation Administration (FAA), the maintenance center being capable of conducting overhaul checks on Boeing 747-400 aircraft, effective from 30 November 2001 onwards. The FAA Air Agency Certificate enables THAI to expand its maintenance services to conduct Boeing 747-400 overhauls on its own aircraft as well as those of customer airlines.