THAI Announces Results After Board Of Directors’ Meeting

Bangkok, 25 May 2000—Thai Airways International Public Company Limited held its Board of Directors’ Meeting, chaired by Mr. Supachai Phisitvanich, THAI’s Vice Chairman, with the following results:


1. State Enterprise Plan 2000/01-2004/05:

The Board of Directors approved the State Enterprise Plan 2000/01-2004/05 with the following objectives and goals:

Objectives
* Promote quality and efficiency of overall services to meet customer demands
* Enhance management techniques and operations to facilitate effective competition, exhibiting just business prerogatives for customers, competitors, staff and the company
* Establish guidelines for the effective use of Nong Ngu Hao Airport, to be officially opened towards the end of the five-year plan. This is for the maximum benefit of the company in terms of air cargo and its supporting activities as well as others in order to maintain the position of Thailand as an aviation hub of Asian region
* Promote efficient operations with special emphasis on those which are commercial-oriented, in order to attain maximum benefits and profitability

Goals

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* To promote THAI as becoming one of the world’s leading airlines in terms of quality and services
* To promote overall operations with continued profitability and financial soundness
* To support investments on activities which will take place at Nong Ngu Hao Airport, to ensure operational effectiveness prior to the airport’s official opening, in accordance with the Airport Development Plan
* To boost values of THAI shares in the public and to gain public confidence and acceptance of shares for being blue chip stock
* To reduce the proportion of share holding in the airline to 70 percent
2. Purchase of Two Boeing 747-400s Aircraft:

The Board of Directors approved of the proposal from Boeing to sell two Boeing 747-400s aircraft to THAI. However, a legal commitment will not be established between the two parties until Cabinet approval is granted.

3. Aircraft Loan:

The Board of Directors approved the refinancing of THAI’s aircraft, at the amount of 4,500 million baht for the 12th Airbus A330-300, to be managed by the Government Savings Bank at the amount of THB 3,500 million and THB 1,000 million by THAI Employee Cooperatives. The loan was carried out under the same conditions as a loan in Thai baht, in order to pay for the purchase of the 14th Boeing B747-400 aircraft.

4. Management Appointment:

The Board of Directors approved the expansion of the Crisis Management & Information Center CMIC) to become the Crisis Management & Information Center Department, headed by a Vice President who reports directly to the President. The Board of Directors also approved the appointment of Mr. Tummasak Chutiwong, Deputy Vice President, Office of the Executive Vice President, Operations Department as Vice President, Crisis Management & Information Center Department.

5. Inflight Products Development:

The Board of Directors approved the plan to further develop inflight products and facilities. This includes aircraft seat development in all classes for Boeing 777-200, 777-300, 747-400 and Airbus A330-300 aircraft in accordance with the company’s policy as well as installation of modern inflight facilities and entertainment to effectively cater for the rapidly rising market demands in order to increase service efficiency.

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