9 July 2001, Thai Airways International Public Company Limited held its Board of Directors’ Meeting, which was chaired by THAI’s Chairman, Mr. Chai-anan Samudavanija, with the following results:

1. Routenet Alterations & Inflight Equipment Improvement Plans

THAI’s Board of Directors has agreed to postpone the sale of its MD-11 aircraft, until a more appropriate aircraft type may be sought as a replacement in accordance with the upcoming State Enterprise Plan.

This decision was made in accordance with THAI’s Management policies, based on the THAI Board’s directive in order to seek new aircraft seats in Business and Economy Class for the airline’s Boeing 777-200 aircraft. In addition, the directive stated that adjustments be made to inflight equipment on board THAI’s Boeing 747-400 aircraft, while seeking approval for the sale of THAI’s four MD-11 aircraft at some time in the future.

THAI’s Executive Committee, headed by a Vice Chairman of the Executive Committee, proposed that the airline make alterations to its routenet and aircraft utlization plans pertaining to specific flight segments. It was decided that the airline would postpone the sale of its four MD-11 aircraft for the time being, allocating these aircraft to an appropriate route. This decision was based on the results of a meeting held between THAI’s Executive Committee and Management, on Wednesday, 4 July 2001, to study allocation of MD-11 aircraft to an appropriate flight sector, while considering concerns posed by the airline’s pilots, technical engineers, marketing value, and profitability. It was agreed that delaying the sale of the MD-11s would prove more beneficial to the airline than an immediate sale. It was concluded by THAI’s Executive Committee and Management that the sale of THAI’s four MD-11s be postponed until a more appropriate new aircraft type be sought as a replacement, according to the airline’s plan to streamline its aircraft types.

As for the airline’s plans to make adjustments to Business and Economy Class on board THAI’s Boeing 777-200 aircraft, THAI’s Board concluded that alterations be made to the aircraft seats to better accommodate passenger comfort and convenience by adjusting Business Class seats from 8 seats across to 7 seats and adjusting Economy Class from 10 seats across to 9 seats. It was agreed that THAI’s Board would draw up a Strategic Plan for Management and Product Development, to be led by Air Chief Marshal Nopporn Chandawanich who will negotiate with Boeing Commercial Airplane Group, in order that further adjustments be made.

2. Preparations towards THAI’s Privatization Plans

Based on THAI’s plans to further its privatization, the Board of Directors has decided on the following preparations:

2.1 THAI’s Strategic Plan
THAI has proceeded with strategic plans, which will be proposed to THAI’s Board of Directors on 25 July 2001, to be included as part of the airline’s State Enterprise Plan.

2.2 Selection of THAI’s President and Management
Since THAI’s current President will retire in September 2002, THAI’s Board of Directors has approved to proceed with the executive search for the airline’s next president one year in advance, with THAI’s Chairman Mr. Chai-anan Samudavanija to lead the selection process, which will be announced between 10 July - 15 August 2001.

In addition, THAI’s Board of Directors has granted approval for the Management Selection Committee to proceed with the selection of candidates to fill positions of THAI Management who will retire at the end of this Thai fiscal year (September 2001) and to fill currently vacant Management positions. The Management Selection Committee will be led by Mr. Srisook Chandrangsu, Permanent Secretary, Ministry of
Transport and Communications, and THAI’s First Vice Chairman.

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