THAI announces Board Meeting results

1 . Operating Forecast for 2011

The Board acknowledged the 2011 forecast as follows: Available Seat-Kilometer (ASK) to be 6.5% higher than in 2010 (equivalent to 80,642 ASK), with Revenue Passenger-Kilometer (RFK) expected to increase to 60,168 RPK, and Cabin Factor expected to be at 74.6%. Similarly, revenue from sales and customer airlines is expected to grow by 10%. For Cargo and Commercial Mail, Available Dead Load Ton-Kilometers (ADTK) is expected to increase by 12.8% (equivalent to 5,340 ADTK), with Revenue Freight Ton-Kilometers (RFTK) expected at 3,262 (RFTK), and Freight Load Factor close to 2010 figures.

2 . Operating Results for November 2010

The Board acknowledged the operating results for November 2010 as follows: Available Seat-Kilometer (ASK) for November 2010 was 4.2% higher than in November 2009. Revenue Passenger-Kilometer (RPK) was 1.4% higher than November 2009. Cabin Factor averaged 72%.

From January to November 2010, Available Seat-Kilometer (ASK) was 5.3% higher than the same period in 2009. Revenue Passenger-Kilometer (RPK) was 6.6% higher than the same period in 2009. Cabin Factor averaged 73.5%, which was 1.2% higher than the same period in 2009.

For Cargo and Commercial Mail, Available Dead Load Ton-Kilometers (ADTK) in November 2010 was 18.2% higher than in November 2009. Revenue Freight Ton-Kilometers (RFTK) in November 2010 was 17.0% higher than in November 2009. Freight Load Factor averaged 61.1%.

During January to November 2010, ADTK was 17.9% higher than the same period in 2009. RFTK from January to November 2010 was 41.8% higher than the same period in 2009. Freight Load Factor averaged 61.9%, which was 20.3% higher than the same period in 2009.

3. Long Term Plan on New and Retrofit Aircraft Development Projects

THAI's Board of Directors acknowledged the progress on the long-term plan on new and retrofit aircraft development projects. These projects will create value for customers and increase customer satisfaction as well as enhance corporate image and competitiveness.

Key features in the first class cabin include the 180-degree flat seats with 23-inch personal screens; business class cabin will have the 180-degree reclining seats on intercontinental routes and 170-degree reclining seats on regional routes, with 15-inch personal screens, and new economy class seats to have 9- to 10.6-inch personal screens. Passengers in all classes will enjoy the in-flight connectivity functions to access voicemail, short messages and multi-media messages (sms/mms), and the Internet. Additional galley equipment will include microwave ovens and espresso coffee machines, Galley Air Chiller for consistent temperature control of foods, and Induction Heat Unit (IHU) for preserving the true flavors of freshly prepared meals.

3.1 Aircraft Retrofit Projects (3 Projects)

During 2011-2012

3.1.1 THAI will retrofit six B747-400 aircraft with new economy class seats, 9-inch personal screens, and in-flight entertainment system.

3.1.2 THAI will retrofit eight B777-200 aircraft with 9-inch personal screens in economy class.

During 2012-2013

3.1.3 THAI will retrofit six B747-400 aircraft with new seats in all classes, including personal screens and in-flight entertainment system.

3.2 Cabin Interior and In-flight Product Improvement of Retrofit Aircraft (3 Projects)

The cabin interior for all classes of travel will be re-designed in a more contemporary Thai style, adding new technology for customer satisfaction. Cabin interior designers will be tasked with cabin interior improvement in all classes of travel. These 3 projects include:

3.2.1 The cabin interior and in-flight product improvement of six A340-600 aircraft during 2012- 2013

3.2.2 The cabin interior and in-flight product improvement of four A340-500 aircraft during 2013-2014

3.2.3 The cabin interior and in-flight product improvement of six B777-200ER aircraft during 2016-2017

3.3 Cabin Interior and In-flight Product Design of New Aircraft (4 projects)

3.3.1 The cabin interior and in-flight products of eight A330-300 aircraft to be delivered by 2011

3.3.2 The cabin interior and in-flight products of seven A330-300 aircraft to be delivered by 2011-2012

3.3.3 The cabin interior and in-flight products of eight B777-300ER aircraft to be delivered by 2012-2013

The cabin interior and in-flight products of six A380-800ER aircraft to be delivered by 2013-2014

3.4 In-flight Entertainment Improvement

3.4.1 Increase In-flight entertainment content , from January 2011 onwards , as follows:

§ Increase movies titles from 48 to 100 movies

§ Increase TV and short documentaries from 45 to 150 choices

§ Increase Songs/CD Albums from 80 to 500 CDs

3.4.2 Implement new, easy-to-use in-flight entertainment interactive menu screens that accommodate expanded entertainment selections and helpful information on airports and destinations.

4. Selection of Buyer Furnished Equipment (BFE) and Technical Service Provider (TSP) for Retrofitting Cabin Interior of B747-400

The Board approved the suppliers for the following: Buyer Furnished Equipment (BFE) for aircraft seats in all three classes (First, Business, and Economy), In-flight Entertainment Equipment (IFE), In-Seat Power Supply System (ISPSS) and Technical Service Provider (TSP) for six B747-400 aircraft. The selected suppliers are:

First Class Seats, with investment of 19.5 million USD (approximately 588.2 million baht), shall be provided by B/E Aerospace - Seating Products Group, USA

Business Class Seats, with investment of 7.5 million EUR (approximately 309.2 million baht), shall be provided by EADS Sogerma Services, France

Economy Class Seats, with investment of 10.8 million USD (approximately 324.3 million baht), shall be provided by B/E Aerospace - Seating Products Group, USA -the only company to have made a proposal for these seats

The In-Flight Entertainment System and the In-Seat Power Supply System, with investment of 29.2 million USD (approximately 878.7 million baht) shall be provided by Panasonic Avionics Corporation, USA

The Technical Service Provider, with investment at 8.3 million USD (approximately 248.7 million baht) shall be provided by Jamco America Inc., USA

The total investment budget for suppliers of BFE and TSP for the six B747-400 aircraft is estimated to be 2.3 billion baht, which is below the approved budget by 511 million baht. The cabin interior improvement on all classes of service will create value and increase customer satisfaction in the long term.

5. Debentures

THAI's Board of Directors approved the hiring of arranger(s) to help THAI issue local bonds totaling 8 billion baht in 2011. These shares may be sold either to financial institutions and/or general public and/or targeted buyer and/or to a group of investors not exceeding 10 groups.

6. Management Appointments and Transfers

THAI's Board of Directors approved the transfers below, effective from 15 January 2011:

6.1 Mr. Apichart Danaivan, Vice President of Personnel Development & Training Department, as Vice President of General Administration Department

6.2 Mrs. Chuda Dhanabhumi, Vice President of Human Resources Management Department, as Vice President of Personnel Development & Training Department