On 10 August 2007, Thai Airways International Public Company Limited held a Board of Directors’ Meeting, chaired by Air Chief Marshal Chalit Pukbhasuk, THAI’s Chairman, at THAI’s Technical Department, Suvarnabhumi   Airport, with the following results:

1. THAI’s Third Quarter Financial Results (April 1 – June 30, 2007)

The Board of Directors acknowledged the third quarter Financial Results.   For the third quarter of fiscal year 2007 (April 1 – June 30, 2007) the company’s total revenue from the sale of goods and the rendering of services amounted to THB 44,529 million, which is an increase by 5.7%.  The company’s operating expense totaled THB 44,415 million, which is an increase by 7.9% over the same period last year.  As a result, profit from the sale of goods and the rendering of services was THB 114 million, lower than a profit of THB 959 million in the third quarter and profit before tax amounted to THB 123 million.  The company’s net profit was THB 68 million lower than a profit THB 473 million in the third quarter.  The earning per share was THB 0.04 lower than THB 0.28 in the third quarter. 

The company’s net profit for the first nine-month period of fiscal year 2007 (October 1, 2006 – June 30, 2007) totaled THB 8,327 million, which is a decrease of THB 2,160 million or 20.6% from the same period last year.   Earnings per share decreased to THB 4.90 compared with THB 6.17 last year.

2. New Appointment and Reshuffle of THAI’s Management

THAI’s Board of Directors approved the new appointment and reshuffle of THAI’s Management in replacement of the retired management and the vacant positions with the results as follows:

2.1    New Appointment

Executive Vice President Level

Vice President Level

The appointment of the Management number 1 – 6 will take an effect from 1 October 2007 and number 7 will take an effect from 10 August 2007 onwards.

2.2    Reshuffle of THAI’s Management

1.   Mr. Apichai Sangsasi, Vice President, Operations Support Department, to be appointed  Vice President, Flight Operations Department

2.  Capt. Sopit Pokasoowan, Vice President, Information Technology Services Department, to be appointed Vice President, Aviation Personnel Development Department and Acting Vice President, Information Technology Services Department

3.   Mr. Teeraphol Chotichanapibal, Vice President, Sales and Distribution Department, to be appointed Vice President, Commercial Development and Support Department

The reshuffle of the Management will take an effect on 1 October 2007 onwards.

3. THAI’s 10-Year Corporate Plan (2008 – 2017)

The Board of Directors acknowledged the initial proposal of THAI’s Corporate Plan for the year 2008 – 2017 which will be proposed for approval in September 2007.

11 July 2007 at the Head Office of Thai Airways International Public Company Limited, THAI held its Board of Directors Meeting, chaired by ACM Chalit Pukbhasuk, THAI’s Chairman of the Board of Directors, with the following results:

1.  Aircraft Fuel Purchasing

THAI’s Board of Directors approved in principle of aircraft fuel purchasing for 11 overseas stations in four countries, Australia, New Zealand, Japan and South Korea, during the period 1 August 2007 – 31 July 2008 based on a budget of approximately 9,795 million baht. The purchase will be considered according to the lowest proposed price.

2. 10-Year Corporate Plan

THAI’s Board of Directors made a follow-up of the company’s 10-Year Corporate Plan and requested the Management to emphasize marketing plans and the company’s growth in order to remain competitive in the aviation industry. The 10-Year Corporate Plan will be proposed to the Board of Directors for consideration by September 2007.

3. Appointment of Long-Term Financial Leaser

THAI’s Board of Directors approved for HSH Nordbank to be the long- term financial leaser of Boeing B777-200ER aircraft numbers 5 and 6, equivalent to US$ 232 million.

14 June 2007 at THAI’s Catering Department, Suvarnabhumi Airport, THAI held its Board of Directors Meeting was chaired by ACM Chalit Pukbhasuk, THAI’s Chairman of the Board of Directors, with the following results:

1. The Appointment of Sky Asia Company (Nok Air) Board Member

THAI’s board of directors has approved to assign Gen. Pairoj Panichsamai, THAI’s Board of Director to be Sky Asia Company (Nok Air) board member replacing ACM Chalit Pukbhasuk, THAI’s chairman, who has resigned since 17 October 2006.

2. Expand Tourism to Samui Island

THAI’s board of directors has requested THAI’s Management to conduct further studies on convenient mode of transportation between Surat Thani and Samui Island in order to expand tourism.

3.The Termination of Shah Amanat International Airport Contract

THAI’s board of directors has approved termination of contract between THAI and Shah Amanat International Airport, Chittagong, Bangladesh due to delay of handover the airport to THAI according to the contract.

4. Open Bid for Duty Free on Board

THAI’s board of directors has approved an open bid for a new company to sell duty free on board with 3 years contract and 1 extended year, which THAI is searching for company that provide most benefit for THAI. The current company will be end in November 2007.

5. Recruitment of Flight Attendant

THAI’s board of directors has approved for recruitment of new 426 flight attendants.

16 May 2007 at the Head Office of Thai Airways International Public Company Limited, THAI held its Board of Directors Meeting was chaired by ACM Chalit Pukbhasuk, THAI’s Chairman of the Board of Directors, with the following results:

1.   Corporate Plan 2008-2010

THAI’s Board of Directors approved of the corporate plan for year 2008-2010, revised in years 2005/06 – 2009/10, with important points in the plan as follows:

• Corporate vision is “First Choice Carrier with Touches of Thai”
• The company stresses customer service, creating maximum satisfaction with emphasis on the “Magic Service Ring” strategy
• “Magic Service Ring” is the strategy that creates a difference, creating good experiences and positive feelings that customers receive from THAI’s good service provision in all areas of customer service, those being pre-travel service, while travel is in progress, post-travel service, for example reservation, check-in, inflight service call center, lounge, boarding, and arrival and baggage.

2.  Action Plan 2007-2008

THAI’s Board of Directors approved of the Action Plan for year 2007-2008, the organization strategy of which the Management proposed to cover all areas, including customer satisfaction, marketing plans, personnel improvement plans, and agreed for the company’s Management to put forth its 10 Year Corporate Plan (2008-2017), which will be proposed to THAI’s Board of Directors for consideration in August 2007.

3.   Change of Board Members

THAI’s Board of Directors approved of the appointment of Mr. Aviruth Wongbuddhapitak, Assistant Director-General, Bureau of the Crown Property, as Board Member, replacing Mr. Sirin Nimmanahaeminda, who resigned from the Board of Directors, with the new appointment effective as of 16 May 2007 onwards

On 9^th May 2007, Thai Airways International Public Company Limited held a Board of Directors’ Meeting, chaired by Air Chief Marshal Chalit Pukbhasuk, THAI’s Chairman, at THAI’s Head Office, with the following results:

1. THAI’s Financial Results for the First Half of Fiscal Year 2007

THAI’s financial results for the first half of fiscal year 2007 (1 October 2006 – 31 March 2007) showed that THAI achieved a net profit of 8,259 million baht, a decrease of 1,755 million baht or 17.5 percent compared to the same period last year.  Earnings per share are 4.86 baht compared to 5.89 baht in 2006.

THAI’s second quarter results for fiscal year 2007 (1 January – 31 March 2007) showed that THAI achieved total revenue from the sale of goods and services amounting to 49,597 million baht, an increase of 7.6 percent compared to the same period last year.   THAI’s operating costs reached 43,420 million baht, an increase of 7.1 percent compared to the same period last year.  As a result, profit from the sale of goods and services was 6,177 million baht, an increase of 592 million baht or 10.6 percent compared to the same period last year.  THAI achieved pre-tax profit of 6,084 million baht, a decrease of 2,747 million baht compared to the same period last year due to strong Thai currency.  As a result, net profit was 4,233 million baht, a decrease of 1,972 million baht compared to the same period last year, or is equivalent to 31.8 percent. 

2. Trends of Aviation Industry in the Third Quarter

The third quarter result is expected to decline due to the low season and high competition of the aviation industry in Thailand.  As a result, THAI’s Board of Directors agreed and requested the management to review the existing route network and company’s asset management to increase income and reduce expenses.  Also, the management is required to develop greater service quality in order to ensure total customer satisfaction.

3. Approval of Loans

THAI’s Board of Directors approved loans of 17,000 million baht, concurring with the company’s request as follows:

1. Loan of Yen from a financial institution in one or more loans (approximately 3,000 – 6,000 million baht)
2. Baht debenture shares in Thailand given once or more and/or loan of baht from one or more national financial institutions for a total of 11,000 – 14,000 million baht

However, if the company is not able to procure a loan in due time, the loan can be in the form of Euro Commercial Paper (ECP) by the Ministry of Finance on a short-term basis.  In this regard, prior to the procurement of loan, the management is required to submit names of selected financial institutions to the Board of Directors for further consideration.

1. Improving Productivity of Heavy Maintenance Department

THAI’s Board of Directors approved 200 new positions to recruit more staff for heavy maintenance department, which would help improve efficiency in aircraft maintenance.  The Board also approved a purchase of additional maintenance equipment at a budget cost of 550 million baht.

2. Implementation of Computer Backup Center

THAI’s Board of Directors approved implementing computer backup center to help reduce risk of having single computer center and ensure continual flow of information. With the budget of 800 millions bath, THAI will hire a computer professional company on a 5 year contract focusing on enhancing THAI’s competitive advantage and providing maximum benefits for the company.

3. Operations at Don Muang Airport

Effective From 25th March 2007, THAI will begin its domestic flight operations at Don Muang, offering 30 flights per day. Furthermore, THAI will also set up a Customer Service Center or In-Town Check-In in order to provide traveling convenience for passengers at Ladprao train station (Mass Rapid Transportation), where customer are able to check-in 2.30 hours prior to flight departure.

On 14 February 2007, Thai Airways International Public Company Limited held a Board of Directors’ Meeting, chaired by Air Chief Marshal Chalit Pukbhasuk, THAI’s Chairman, at THAI’s Head Office, with the following results:

1. Postponed Delivery of THAI’s A380-800 Aircraft

THAI’s Board of Directors approved of the postponement of the company’s 6 Airbus A380-800 aircraft, with delayed delivery from Airbus S.A.S. by approximately 21 months.  The postponed delivery was taken under careful consideration following a total of 9 meetings held by the company’s Executive Committee and Board of Directors.  It was concluded that it remained necessary for the company to use the Airbus A380-800  along-range aircraft type with a seat capacity of 519 seats, in order to increase its productivity on routes with high passenger traffic and restraints in increasing flight frequencies, such as London, Frankfurt, and Paris.

As a result, Airbus proposed compensation for losses and granted various perks beneficial to the company.  The company’s first Airbus A380-800 will be delivered to THAI in September 2010.

2. New Aircraft to Replace Those to be Retired

THAI’s Board of Directors approved of the intent to purchase 8 new Airbus A330-300 aircraft, replacing 8 aircraft of the average age of 20 years that will be retired from the company’s fleet: 6 Airbus A300-600 aircraft and 2 Boeing 747-300 aircraft.  THAI’s Board of Directors have considered and compared cost-effective operations.  Upon consideration of the new aircrafts’ regional and operational performance, compared to the aircraft type that will be retired, it was concluded that the mid-range Airbus A330-300 was appropriate and most beneficial to the company.  In addition, the company received a price reduction for Airbus A330-300 aircraft from Airbus S.A.S.

The first Airbus A330-300 aircraft will be delivered to the company in year 2008, with gradual delivery through until year 2010.

3. Sale of 2 Airbus A300-600 Aircraft

THAI’s Board of Directors approved of the sale of 2 Airbus A300-600 aircraft, whereby the first aircraft will be delivered in March 2007 and the second aircraft will be delivered in June 2007.

4. HSBC as Arranger for Financial Lease of Airbus A340-500 no.4

THAI’s Board of Directors approved of HSBC as the arranger for long-term financial lease of the company’s Airbus A340-500 no.4 in Euro currency, equivalent to 106.25 U.S. Dollars, for a financial term of 12 years.

5. Exercise Purchase Option for Boeing 747-400 no. 11

THAI’s Board of Directors approved to exercise the purchase option at the end of the lease term for the company’s Boeing 747-400 no. 11, which the company had leased since April 1997, the lease contract of which will end in April 2008, with an aircraft age of 11 years upon the end of contract.