Results Of THAI`s Executive Committee Meeting

Bangkok, 29 May 2001—Following Thai Airways International`s Executive Committee Meeting held at THAI`s Head Office, Mr. Sunthorn Pokhachaiyapat, Chairman of THAI`s Executive Committee, made thefollowing announcement:

1. Plans to Improve Inflight Entertainment Systems and Equipment

Thai Airways International is proceeding with plans to make improvements to four of THAI`s aircraft types, those being Boeing 777-300, Boeing 777-200, Boeing 747-400 and Airbus 330-300 aircraft. Work is currently underway to improve THAI`s six Boeing 777-300 aircraft, as the first priority.

Since year 2000, THAI`s Board of Directors has committed to improving THAI`s inflight entertainment systems and equipment, service standards, and increasing the level of efficiency, which was prior to the appointment of Mr. Bhisit Kuslasayanon as airline president. 
On 15 May 2001, the Management proposed a total of approximately 2,000 million Baht budget, equivalent to USD 140 million to improve eight Boeing 777-200 aircraft. The budget is allocated as follows:

* 400 million Baht for aircraft seats
* 500 million Baht for inflight entertainment
* 1,000 million Baht for aircraft main structure from aircraft manufacturer


The Board of Directors views this inflight entertainment systems improvement plan as a substantial investment. Therefore, it was agreed that THAI`s Management would reconsider and further study the plans in detail for maximum benefit to the company as well as for THAI to compete effectively with other airlines. THAI`s Management sought advice and closely coordinated with ACM Nopporn Chanthavanich, a member of THAI`s Executive Committee. The issue was included in the agenda of the last Board of Directors` Meeting on 23rd May. This project is being considered by the Board, and therefore the Executive Committee is unable to provide any further detail on the project at this time.

2. External Office at THAI for Members of Executive Committee

In response to the news published in some newspapers concerning a request to set up offices for members of the Executive Committee with a budget of 17 million Baht, Mr. Sunthorn Pokachaiyapipat, Chairman of the Executive Committee, said that on 4 May 2001, a request was made to THAI`s Building & Premises Department to arrange offices for seven members of the Executive Committee and 20 assistants.

Two members of the Executive Committee are THAI executives, who already have offices at THAI`s Head Office. THAI`s Building & Premises Department has suggested that the 21st floor, Building 1, THAI`s Head Office, may be used as the temporary office and the 27th floor, Building 5 as a permanent office. On 18 May 2001, the Building & Premises Department submitted an estimated cost of 17 million Baht for setting up external offices for members of the Executive Committee. On 21 May 2001, the Chairman of the Executive Committee informed THAI`s President to postpone the plan and requested the use of the area on the 21st floor as a temporary office for the members of the Executive Committee.

3. Review of Purchasing and Employment Procedures

The Chairman of the Executive Committee confirmed that the committee has not in anyway interfered with the airline`s purchasing and employment procedures. The regulations and procedures applicable to THAI`s purchasing and employment remain unchanged.