Thai Airways International Public Company Limited Holds Extraordinary Shareholders’ Meeting 2/2002

Today, 11 October 2002, Thai Airways International Public Company Limited held an Extraordinary Shareholders’ Meeting 2/2002, which was chaired by THAI’s Chairman Mr. Thanong Bidaya. Members of THAI’s Board of Directors, THAI’s President Mr. Kanok Abhiradee, THAI’s Executive Vice President for Finance and Accounting Mr. Kaweepan Raungpaka, and THAI’s Management as well as THAI shareholders were present at the meeting. The following issues were discussed:

Acquisition Plan for 2 Long-Range Aircraft & 1 Medium-Range Aircraft Pursuant to THAI’s Corporate Plan 2000/01 – 2004/05

THAI’s Shareholders' Meeting granted approval for the airline to incur liabilities and/or obligations in acquiring 2 long-range aircraft and 1 medium-range aircraft based on THAI’s Corporate Plan 2000/01 – 2004/05, as approved by the Cabinet on 17 October 2000.

THAI’s need to acquire additional aircraft resulted from capacity shortage, especially on European routes having experienced increased passenger traffic. Due to the increase in number of passengers, THAI experienced a cabin factor of over 80% on major routes. As capacity is on the rise, it is necessary for THAI to expand its regional service due to high demand in passenger travel. Since THAI has experienced regular demand, revenue, and profit on regional routes, capacity increase is necessary. During fiscal year 2002/03, THAI adjusted its aircraft utilization for increased efficiency at a production growth rate of approximately 6 percent, alleviating capacity shortage and supporting future growth.

It was stated that if THAI fails to acquire new aircraft during fiscal year 2003/04, low production and growth rate will place the airline in a risky situation due to aircraft shortage. This would result in passengers switching to services offered by other airlines and capacity shortage causing THAI to gradually lose its market share. As leadtime for delivery will take approximately 18 months, THAI will need to acquire the new aircraft in time to enter the fleet and be utilized for fiscal year 2003/04.

THAI shareholders who attended the shareholders’ meeting, including those who attended in person and appointment of proxy, amounted to a total of 1,307,567,961 shares.