THAI Announces Board Meeting Results

May 9, 2007

BANGKOK--(U.S. ASIAN WIRE)--On 14 February 2007, Thai Airways International Public Company Limited held a Board of Directorsı Meeting, chaired by Air Chief Marshal Chalit Pukbhasuk, THAIıs Chairman, at THAIıs Head Office, with the following results:

1. Postponed Delivery of THAIıs A380-800 Aircraft THAIıs Board of Directors approved of the postponement of the companyıs 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 companyıs 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 companyıs first Airbus A380-800 will be delivered to THAI in September 2010.

2. New Aircraft to Replace Those to be Retired THAIıs 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 companyıs fleet: 6 Airbus A300-600 aircraft and 2 Boeing 747-300 aircraft. THAIıs Board of Directors have considered and compared cost-effective operations. Upon consideration of the new aircraftsı 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 THAIıs 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 THAIıs Board of Directors approved of HSBC as the arranger for long-term financial lease of the companyıs 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 THAIıs Board of Directors approved to exercise the purchase option at the end of the lease term for the companyıs 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.