THAI Announces Results After Board Of Directors’ Meeting

Bangkok, 24 February 2000—Thai Airways International Public Company Limited held its Board of Directors’ Meeting, chaired by Mr. Mahidol Chantrangkurn, THAI’s Chairman, with the following results:

1. Increase of Domestic Air Fare
Following the approval of the Civil Aviation Committee on March 8th, 1999, for THAI to increase its domestic air fares, but due to the remaining effects of Asia economic crisis, the increment has been postponed during THAI’s Board of Directors’ Meeting dated 21st April, 1999.

However, due to an estimation of 1,700 million baht loss on domestic operations of the current budget year, it was necessary for the increment of domestic airfare to take effect according to the approval from the the Civil Aviation Committee in 1999. The Board of Directors agreed to an increase of between 12.7- 13.5 per cent or 40-465 baht, effective as of 20th April, 2000, on domestic fare on all domestic routes to which THAI operates. Further delay of the decision may affect many aspects of THAI operations. The increase will also help further enhance the airline’s domestic service efficiency.

2. Star Alliance
The Board of Directors was informed of the recent meeting which took place in Singapore, between Mr. Thamnoon Wanglee, THAI’s President, and the Chief Executive Officers of Singapore Airlines and Lufthansa, Dr. Choong Kong and Mr. Jurgen Weber. Following the meeting to discuss Star Alliance issues, THAI issued a press statement to confirm that THAI would remain in the Star Alliance and the recent news about the possibility of THAI leaving the alliance was incorrect.

3. Increase Reserve for Staff Pension Fund


The Board of Directors approved an increment of reserve for the company’s pension fund, which should be equivalent to company’s obligations entitled by all employees at an amount of 496.89 million baht for the 1999/2000 budget year following recommendations of the Ministry of Finance.