THAI : Annual Report 2000

THAI AIRWAYS INTERNATIONAL PUBLIC COMPANY LIMITED Annual Report 1999/2000

CONTENTS Operational Highlights of 1999/2000

2

Financial Highlights

3

Chairman’s Statement

4

Message from the Management

6

Review of 1999/2000 Operations

11

Review of 1999/2000 Finance

25

Ten-Year Review

32

Summary of Audit Committee Report

34

Report of Independent Auditor

36

Balance Sheets

38

Statements of Income

40

Statements of Changes in Shareholders’ Equity

42

Statements of Retained Earnings

43

Statements of Cash Flows

44

Notes to the Financial Statements

46

Details of Shareholders and Board of Directors

56

Board of Directors

58

Management Team

60

Thai On-line Offices

1

O perational H i g h l i g h t s of 1999/2000

Marked THAI’s 36th consecutive year of profitability Acquired 3 new aircraft and sold 2 aircraft bringing THAI’s fleet to a total of 79 aircraft THAI inaugurated its international flight on the route to Da Nang, Vietnam and domestic route to Petchaboon Province THAI launched its first online flight reservation service website at www.thaiairways.com in June 2000 THAI Cargo launched its online cargo service website at www.thaicargo.com in August 2000 THAI’s Head Office received the ISO 14001 Environmental Management Standard Certification while THAI’s General Administration Department received the ISO 9001 from Bureau Veritas Quality International (BVQI) THAI’s Flight Operations Department received the ISO 9001 certification from Det Norke Veritas (DNV), Norway THAI’s Technical Services Department received recognition in support of Thailand’s national programmes to reduce the use of ozone - depleting chemicals from the Ministry of Industry Voted as one of the world’s best airlines in product development and service delivery according to Inflight Research Survey (IRS) based in Oxford, England Royal Orchid Plus received the Freddie Awards 1999 for the third consecutive years Awarded the 1999 Most Outstanding Airline by Airfreight Forwarder Association Awarded the 1999 Airline of the Year by Auckland Airport, New Zealand

2

F inancial Highlights Thai Airways International Public Company Limited and Subsidiaries

2000

1998

1999

14,932

1999

17,164

90,000

10,000

13,187

100,000

107,653

100,000

15,000

121,712

120,000

105,493

144,810

150,585

167,727

160,000

1998

(Million Baht)

(Million Baht)

(Million Baht)

130,000

Operating Profit

Operating Revenues

Total Assets

5,000

2000

1998

1999

2000

(in million Baht, except amount per share)

Fiscal Year Total Assets Shareholder’ Equity Share Capital Operating Revenues

1999/2000

1998/1999

1997/1998

167,727

144,810

150,585

9,602

9,960

4,410

14,000

14,000

14,000

121,712

107,653

105,493

Operating Profit

14,932

17,164

13,187

Profit before Tax

4,915

6,393

5,268

Net Profit

4,717

5,313

3,696

Per Value

10

10

10

Net Profit

3.37

3.79

2.64

119.81

103.44

107.56

6.86

7.11

3.15

Amount per share (Baht)

Total Assets Shareholders’ Equity

Note : The changing of accounting policies in fiscal year 1999 are not applicable to those used in the previous years.

3

C hairman’s Statement

T

his year, THAI celebrated 40 years of success as the national flag carrier and is proud and determined to become one of the world’s leading international

airlines with high quality and service. Under a policy that focuses mainly on the importance of customers’ satisfaction and areas of potential development, THAI has overcome the difficulties arising from the world market instability in fuel prices plus the Thai baht devaluation and has moved into the new decade with a satisfactory business performance.

Under the current increasingly fierce competition in the aviation industry, good strategic planning to meet the everchanging market situation and environment is extremely important. Having THAI undertake privatization, in accordance with the Cabinet’s resolution will increase its operational efficiency in the long term. The resolution from the Cabinet on March 14, 2000 approved THAI’s privatization plan to sell a total of 400 million shares, which is equivalent to 23% of its registered capital. Sales of shares will be generated from the existing 100 million shares currently held by the Ministry of Finance and the 300 million shares newly issued by THAI. These shares have been allocated for sale to two groups - 10% for THAI’s business alliances, or strategic partners, and 13% for public offering of which 5% of the newly issued shares will be reserved for THAI’s employees.

This will allow the government holding in THAI to remain no less than 70% of the total shares. Proceeds form the sale of shares will also help strengthen THAI’s financial standing as well as increase its competitiveness in the aviation industry.

In order to gain market competitiveness, THAI has taken an aggressive approach through launching its website www.thaiairways.com - providing another choice for customers to conveniently receive flight reservation services, and another website www.thaicargo.com - accommodating customers of cargo services. Moreover, THAI is preparing to offer electronic ticketing or E-ticketing services by fiscal

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year 2001. In addition, the ISO 9002 achievement by several of its departments witnesses THAI’s dedication to continuous development and improvement in order to enhance the quality of work. In this year, the General Administration Department and Flight Operation Department have successfully achieved ISO 9001 certification, while THAI’s Head Office was awarded the ISO 14001 Quality Management System.

To promote the unique beauty of THAI’s culture and arts to the world, THAI took on a diplomatic mission showcasing Thai workmanship through the painting of the royal barge “Narai Song Suban” on one of its Airbus 330-300, which is a continuation of the project started in 1999 with the painting of a royal barge “Suphanahong” on a Boeing 747-400 aircraft. Moreover, to further enhance Thai tradition in its in-flight operation, THAI has replaced some imported products with the delicately made local handicraft products which also supports of the Small and Medium Enterprises (SMEs).

With determination to become the world’s leading airline, THAI continually improves its quality services, and plans this year to upgrade its in-flight facilities by providing wider seats, better communication tools, in-flight entertainment systems, etc. Most important for THAI is the

Mahidol Chantrangkurn Chairman November 10, 2000

maintenance of good management practices for enhancing better work systems and human resource development in order to be well prepared for the future business management.

On this special occasion, I wish to extend my deep appreciation to the management and staff for their full cooperation and dedication and to all shareholders for their continuous support of THAI’s operations. And on behalf of the Board of Directors and the management team, I pledge that we will do our best to lead Thai Airways International Public Company Limited to become one of the World’s Leading Airlines.

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M essage from the Management

T

he year 2000 is yet another remarkable year for Thai Airways International Public Co., Ltd. as it has successfully accomplished 40 years of service.

Nevertheless, THAI will still continue to develop its service by upgrading its inflight facilities and service and its ground services in order to be well-prepared to compete in the highly competitive airline industry. As the national flag carrier, THAI accepted its role in raising the caountry is image and makingThailand known throughout the world. Thus THAI has generated income for the country and helped minimize the impact from world recession.

Marketing Efficiency and Development The increasingly fierce competition amongst airlines has forced many airlines to change their strategies to be in accordance with the current changing economic situation. To maintain its market positioning, THAI has aggressively developed and increased its market efficiency with main focus on improving and adjusting its products, while ensuring every customer receives the highest benefits from using its services. THAI has also planned to expand its customer base through its Royal Orchid Plus program, that allows its customers to accumulate mileage points and redeem them for free flight tickets with Thai Airways International, by initiating cooperation with companies in 3 major sectors - Gas Stations, Department Stores, and Mobile Phone distributors.

In an effort to create greater convenience for customer in obtaining seat reservation and selecting appropriate flights to fit each individual's travel schedule, THAI plans to install automatic ticketing machines in all major domestic airports where payment can be made through credit cards. Additionally, THAI has also launched its official website offering flight reservation services, which targets both international and domestic customers to make reservations online.

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Increasing in Competitive Advantages Three years ago, THAI joined the Star Alliance Network a network where all member airlines share a common goal - to provide the highest level of convenience and benefits for customers when traveling to any destination in the world as its slogan states “The airline network for Earth”. Just recently, Austrian Airlines Group (comprised of Austrian Airlines, Lauda Air, and Tyrolean Airways) and Singapore Airlines joined the alliance making to a total of 15 member airlines. With the addition of new members, the Star Alliance network now covers over 800 destinations in more than 130 countries worldwide.

Ensuring the Highest Safety Standards for Passengers Since passengers’ safety have been the highest priority in providing flight service, THAI continuously maintains and ensures the highest possible standards of safety. Although there are several third party organizations that consistently inspect its safety procedures, THAI still hired specialists in different fields to inspect safety in all areas such as flight operations, technical maintenance, health and environment, ground service, and runway operation whenever necessary, thus providing greater confidence in the company's safety system. The ISO 9000 International Quality Standards were also applied in its operation in order to carry out an effective management of safety systems.

Increasing Efficiency in its Global Service and Inflight Convenience THAI has planned a two-year realignment of its fleet to meet the market trend with main focus on European, Australian, and American regions. In support of the government’s campaign to promote tourism in Thailand, THAI started new routes both regionlly and domestically. This year's new domestic route is to Petchaboon Province and the new international route is to Danang in Vietnam. Additional new routes will generate increasing revenue for the company, as well as increasing income in support of the country’s tourism.

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THAI not only provides more frequent flight schedules and new destinations, but it is also in the process of upgrading its inflight facilities, which will provide greater efficiency in its service. Enhancements included the provision of the most updated inflight entertainment programs and modification of the seats in both First and Business class to accommodate passengers with increased comfort. The 36 upgraded aircraft included eight Boeing 777-200, six Boeing 777-300, fourteen Boeing 747-400, and eight Airbus 330-300. Understanding its role as the national flag carrier in promoting Thailand’s image and culture to passengers, THAI had also improved its inflight service from the moment passengers step into the aircraft, THAI airhostesses welcome them with a warm greeting followed by the service of Thai food during flight, and finally presenting gifts made from delicate Thai handicrafts.

Environmental Management The significance of environmental management is not limited to any one country, but is a concern the whole world shares.

Understanding the current environmental problems and its impact since the end of 1998, THAI decided to implement its environmental management with full commitment to the ISO 14000 standards. Implementation was initiated at the company Head Office where all areas of its operation functions are centralized. Then, in March 2000, the THAI Head Office, which covers a total area of 152,456 sq.m., successfully achieved the ISO 14000 standards and was awarded and certified by Bureau Veritas Quality International (BVQI). Departments that have received the award include the operation control center, computer center, communication and building systems center, and training equipment center. The achievement of yet another international standard in addition to ISO 9001 reflects THAI’s determination to further expand to other departments in achieving the ISO 14000 Environmental Standards.

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Investments to Increase the Country’s Potential With the necessity to expand its ground services, THAI had invested over ten billion baht in the second Bangkok International Airport (Suwannaphum) project, which is expected to be completed and ready for service by year 2004. In fully supporting the construction of this new airport, THAI has great confidence and looks forward to seeing the second Bangkok International Airport become the major hub for all airlines flying over the Southeast Asia region. This possibility will not only help promote Thailand, but will also generate tremendous income for the country.

Other than providing flight services, THAI also offers air cargo service. In order to accommodate rising import, export, and transit cargo demand and to compete effectively with other airlines, THAI launched its online cargo website providing customers with a fast and easy access to the most up-to-date news, checking flight schedule information, tracking cargo status, etc.

There strategies are indicative of the company’s determination to continuously develop its services efficiently in order to become the world’s leading international airline. On behalf of the company, I would like to take this opportunity to express my sincere appreciation to every employee for their cooperation and contribution in helping to lead the company and the country to greater secces and prosperity.

Thamnoon Wanglee President

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10

R eview of 1999/2000 Operations

Aircraft Type B747-400 B747-300 MD-11 B777-300 B777-200 A330-300 A310-200 A300-600 A300-B4 B737-400 ATR-72 B747-200SF Total

Amount 1999/2000 1998/1999 14 14 2 2 4 4 4 2 8 8 12 11 1 1 21 21 2 11 11 2 2 1 79 79

The fleet In the fiscal year 1999/2000, THAI was delivered three aircraft and phased out in the same amount from its fleet. This is to continue fleet modernization program according to the five year plan (1995/1996-1999/2000). However there are still two of Boeing 777-300 remained delivery. Total number of aircraft delivery according to the program will be twenty-one. At the end of fiscal year 1999/2000, total fleet was 79 including one Airbus 310-200 still in process of selling.

The third and forth Boeing 777-300 were dilivered in October and December 1999 respectively with purpose to serve Australasia route mainly Bangkok - Sydney - Melbourne - Bangkok and also Far-East route such as Bangkok - Tokyo. Additionally, the twelfth Airbus 330-300 delivered in July 2000 allowed THAI to provide all services to Perth with more capacity and passenger comfort by Airbus 330-300 in stead of Airbus 300-600.

In this fiscal year, THAI phased out the freighter, Boeing 747-200 since October 1999 due to termination of lease contract and sold two of Airbus 300-B4 to Airbus Industrie in last December 1999.

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Destination and Route Development In the previous year, the Company aggressively developed and expanded its serviced destinations and routes to maintain a competitive position in the increasingly competitive market. The expansion was continuing in such highly potential and increasingly stabilized markets as Europe and Australia. At the end of fiscal year 1999/2000, 73 cities in 34 countries covering 4 continents of the world, including domestic destinations, were covered by the company’s own network. With joint operations with other airlines, the serviced destinations were extended to the total of 101cities in 44 countries within 5 continents. Capacity and frequency of each route were strategically adapted in response to the growing markets.

North Pacific Route The Company operated daily flights to Los Angeles. Among those, 4 flights a week were operated via Tokyo and the rest were operated via Osaka. With extended Code-Sharing agreement with United Airlines (UA), the routes of Los Angeles-Denver, Los Angeles-New York, Los Angeles-Seattle, Los Angeles-Washington D.C., and Tokyo-Chicago were serviced in addition to Taipei-San Francisco, Los Angles-San Francisco, and Los Angles-Chicago. Totally, North Pacific route was added up to 7 destinations.

European Route The Company totally operated 53 flights a week to Europe after service expansions. Since the Europe market shown a high potential in being a very strong and stable economy, expansions of the services to this part of the world were implemented. They were composed of 3 direct flights and 2 direct flights a week to Rome and Athens, respectively, changing from 2 precedent flights a week of combined Bangkok-Athens-Rome. As a result, the total direct flights to Rome were added up to 6 flights a week. In addition, services to 17 more destinations in Central Europe from Frankfurt and Munich, including German domestic market were serviced by the Company in cooperation with Lufthansa Airlines.

Australia and New Zealand Route The Company operated the total of 19 flights a week for the routes from Bangkok to Sydney, Melbourne, Brisbane, Perth in Australia, and Auckland in New Zealand.

The expansion is the introduction of 2 more flights to be the total of 5 flights a week in the route, Bangkok-Sydney-Auckland. Moreover, the changes from 2 flights a week of Bangkok-Sydney-Brisbane to 3 flights a week of Bangkok-MelbourneBrisbane and from 4 flights a week of Bangkok-Perth to the same frequency of Bangkok-Phuket-Perth were exercised. The latter practice resulted in 4 flights a week to Perth.

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Regional Route Due to the economic recovery of most countries in Asia, especially in Far East Asia and Southeast Asia, the Company made several routing adjustments to accommodate the changing market requirement. In the previous year, it introduced 2 additional flights a week for Bangkok-Taipei-Seoul and increased the capacity of the aircraft serving the routes to Hong Kong, Taipei, and Osaka to accommodate the increased demand. It inaugurated 2 additional flights a week for Bangkok-Seoul route, total of 6 flights a week. For the destinations in China, the Company increased the capacity by replacing the existing servicing aircraft Boeing 737-400 with Airbus 300-600 and increased 2 additional flights a week to Shanghai as well as the capacity of the aircraft which led the service to daily frequency.

For other regional routes, the Company increased the capacity of the aircraft for Bangkok-Colombo and Bangkok-Dubai routes which shown increasing demand by employing Airbus 330-300. To accommodate increasing traffic in the routes to Southeast Asia, it increased the capacity of the aircraft in the routes to Singapore and the routes to Denpasar and Jakarta by replacing Boeing 737-400 with Airbus 330-300 and Airbus 300-600 respectively.

For the Indo-China route, the Company extended its reach to another destination, Da Nang in Vietnam. At the beginning, it had serviced direct flight. After a route adjustment, it changed the service to Bangkok-Ubon Ratchathani-Da Nang with 3 flights a week. Moreover, it also increased the capacity of the aircraft servicing the route to Vientiane by employing Airbus 300-600 with 7 flights a week.

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Domestic Route In the preceding year, the Company increased service frequency of the high potential domestic routes. A frequency increase of 22 flights to 33 flights a week and an utilization of Boeing 737-400 dominant aircraft fleet, rather than Airbus 300-600, to serve the route of Bangkok-Chiang Rai were introduced. The Company further increased 7 additional flights a week for the route of Bangkok-Khon Kaen. It also stretched out to another destination, Phetchabun, in the route of Bangkok-PhetchabunLampang with 3 flights a week, employing Boeing 737-400. Due to increasing tourism popularity of the seashores in southern provinces, the Company added more frequency for the routes to this area. For the Krabi, it introduced 4 additional combined flights a week of Bangkok-Krabi-Trang, total of 7 flights a week. Furthermore, it extended the connected route from Phuket-Hat Yai to Phuket-Trang-Hat Yai, servicing 7 flights a week. All of those expansions were made to accommodate the increasing number of travelers as well as to facilitate tourist industry growth in Thailand.

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Marketing Under the fierce competition in the airline industry, THAI is still operating its business successfully, especially in providing satisfactory inflight service. With an aggressive marketing strategy, the Company was able to win passenger preference in selecting THAI. In the past one year, THAI carried over 17.7 million passengers on both domestic and international flights, which is an increase of 8.6 percent when compared to last year’s figure. Statistics show an increase in passengers on domestic flights of 6.6 percent and an increase in passengers on international flights of 10.3 percent. Strategies that brought about such remarkable increases are the result of promoting Thailand both as traveler’s final destination and organizing all major airports to act as regional hubs for transit flights in the Asia Pacific region and the Indo-China region. Other strategies to expand its market coverage include THAI participation in international exhibitions and seminars, etc. In the past year, THAI was selected as the official carrier for many important meetings including World’s Youth Tour Seminar, The 10th United Nations Conference on Trading and Development, and Annual Asia’s Development Banking Council.

THAI initiated and constantly developed many marketing activities to be in line with its strategies. The joint effort with Tourism Authority of Thailand in promoting Thailand to overseas visitors, supporting educational tours for its agents, and participating in Star Alliance’s activities that will further strengthen the organization are just a few examples.

THAI also developed and offered new benefits in its frequent flyer program “Royal Orchid Plus” as rewards for its members and promoting them to select THAI services. Thus the ROP Program was voted among the top three frequent flyer programs by frequent travelers from around the world, making THAI’s Royal Orchid Plus yet again the best in Asia. Royal Orchid Plus also garnered 3 additional 1999 Freddie Awards Best Frequent Flyer Elite-level Program, Best Frequent Flyer Award Redemption Award, and Best Frequent Flyer Customer Service. There are currently more than 1.3 million ROP members in 190 countries worldwide.

THAI also launched several major marketing programs to promote tourism under the Royal Orchid Holiday program. Firstly, The Undersea Wedding Ceremonial Event at Trang Province in February 2000 was awarded the Pata Gold Award for the Best Public Relations Campaign 2000 and was also recorded in the Guinness Book of Records. Another program, Thai’s Amazing Family Golf 2000 program, was organized to promote golfing in Thailand. Other programs include Health Checkup programs for all passengers traveling from Indo-China, Pre & Post Brochure distribution to bring about other countries’ interest in organizing international conventions and major events in Thailand, etc.

Moreover, THAI see the importance of information technology in supporting its marketing activities and therefore embraces its advantages through the introduction of its official website offering flight reservation services since June 2000. The THAI website received much interest from the public in reserving their tickets via the Internet.

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Star Alliance Through all the years of its business operation, THAI realizes the importance of forming business alliances to achieving global networking coverage that could impressively satisfy every single passenger’s wish to reach their final destination with comfort and convenience.

Joining the Star Alliance Network, which is one of the world's largest airline alliance networks, THAI's major goal is to make it possible to offer convenient services from any place in the world for the benefit of customers.

Currenlty, the Star Alliance Network consists of 15 member airlines, which include Lufthansa Airlines, Scandinavian Airlines System, United Airlines, Air Canada Airlines, Varig Brazilian Airlines, Ansett Australian Airlines, Air New Zealand, All Nippon Airways, Austrian Airlines, Lauda Air, Tyrolean Airways, Singapore Airlines, Mexicana Airlines, British Midland Airways, and Thai Airways International. The Star Alliance network covers more than 800 destinations in 130 countries, which enables it to serve customers from any part of the world, and to become a truly global network.

In addition, the Star Alliance Network had initiated the Starnet project to provide and handle services such as ground services, ticketing, and call center services via the Internet network. This project is expected to be completed and be available within this year. It will also further expand its coverage to other areas such as warehousing, technical services, purchasing, and marketing in the near future.

Cargo and Mail Operations THAI Cargo ranks as one of the world’s top 20 airlines with the highest cargo traffic providing services to all domestic airlines, as well as more than 50 foreign airlines within the Bangkok International Airport. Understanding the importance of efficiently providing quality services, THAI continually develops its existing system by investing in advanced technology such as the ORCHIDS database system and THAIPAC and TG Force services.

In this fiscal year 1999/2000, THAI is preparing to introduce a new accounting system (Cargo Accounting Settlement System – CASS) of IATA to its operation in Thailand in order to efficiently manage settlements with its agents.

As the nation’s increasing exports bring about higher demands for air cargo transportation, THAI utilizes the efficiency of the Internet in responding to its customer’s demand through its website, www.thaicargo.com. With the ORCHIDS information database system linked to this website, customers are able to find information on all routes and destinations provided by THAI’s aircraft and other THAI facilities, as well as being able to track the cargo’s current status through the online Interactive Tracking service system.

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Not only does THAI Cargo handle air cargo traffic in Bangkok, it also has its own air freighter that joins with Star Alliance’s network in transporting cargoes to major destinations in Asia, Europe, North America, and Australia.

Being one of the members of the Star Alliance network has enabled THAI to efficiently provide its air cargo transportation services with the widest market coverage when compared to other airline alliances.

THAI Cargo’s ISO 9002 achievement in the year 1999 by the Bureau Veritas Quality International (BVQI) covers all outbound and inbound cargo, goods in transit, and warehousing services provided at Bangkok Airport. With the ISO 9002 achievement and its determination to maintain quality services, THAI Cargo has extended and successfully implemented the ISO 9002 quality system for all of its warehousing services located in Chiangmai, Hat Yai, and Phuket airports during this year. The ISO certification is expected to be issued by BVQI at the beginning of year 2001.

Ground Services Determination to ensure the highest level of customer satisfaction is an important factor that guides the Company towards constant service improvements. As a result, THAI has introduced a “high-tech” system to upgrade its ticketing services at check-in counters, which raises its service a higher standard in providing an efficient check-in service even during peak hours.

In order to provide a higher level of service to First Class, Star Alliance Gold, and Group Tour passengers, THAI had opened a special check-in counter to provide faster service and greater convenience. Transiting First and Business Class passengers have special privileges at THAI lounges that are fully equipped with all types of entertainment and services, thus, providing hours of relaxation and enjoyment until take-off time. Upon arrival at destination, VIP passengers will receive convenience in picking up their baggage since baggage with the Priority Bag Tag will be the first to be loaded on the carousel. Currently, the First Class Check-in Lounge is still under-construction and will be ready for service by April 2001.

Moreover, THAI has plans to install automatic ticketing machines to issue tickets for domestic passengers according to the Self-Service Airport program.

This will mean move convenience for passengers who will be able to purchase and confirm their ticket by themselves via credit cards prior to checking in. The machine installation is underway in four major airports - Bangkok International Airport, Phuket Airport, Hat-Yai Airport and Chiangmai Airport.

And in February of this year, THAI organized an Overseas Station Managers Meeting with the aim to increase service standards for all passengers receiving THAI service, with the slogan - “Be Satisfied Only When Customers Are Satisfied” and “Service From Your Heart”.

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Catering Services Providing quality catering services in order to be widely accepted by passengers on its own flights and passengers of more than 40 customer airlines, is THAI Catering Service Department's priority task. The ISO 9002 Quality Standards, HACCP (Hazard Analysis Critical Control Point) and GMP (Good Manufacturing Practise) stipulate the high standards of cleanliness and hygiene required for every meal's preparation.

THAI Catering Service Department consists of two main kitchens.

The International Flight Kitchen caters for over 40 customer airlines in addition to THAI’s own international flights and has the capacity to produce approximately 36,200 meals per day. However, with the high demand for its catering service, THAI has made an additional investment of more than 232.5 million baht for expansion of its kitchen space in order to efficiently accommodate production of an additional 5,300 meals per day. From such expansion, THAI’s catering production capacity will increase to 41,500 meals per day. Moreover, THAI plans to move its International Flight Kitchen to the new Bangkok International Airport at Nong Ngu Hao, an investment of approximately 3,000 million baht, to further expand its production to a maximum capacity of 45,676 meals per day by year 2004.

Not only does the Domestic Flight Kitchen provide meals for passengers on all domestic airlines, its service has further expanded and diversified. THAI is now also providing outside catering services, initiating a catering training center and setting study courses in airline catering and Thai cuisine, opening new outlets of its Bakery House “Puff & Pie” from the current 12 outlets to 35 outlets, and opening restaurants to accommodate social events and meetings.

At the 3E Academie Internationale De l’Excellence, a worldwide airline caterer competition held in Paris this year, THAI gained global recognition for Thai food when it was awarded the first prize trophy Meilleur Plat Chaud Viande for the main course sewed on board Economy class. Moreover, it is also the only airline to reccive an overall achievement award Prix Special du Jury.

Technical Services THAI not only puts special attention on enhancing the inflight convenience and comfort for all passengers during flights, but, even more importantly, ensures the safety of all passengers on-board. Continuous developmental programs through the use of advanced technology to ensure the highest standard of safety are constantly implemented in order to fully strengthen the maintenance system with in accordance with the company’s safety policy. Currently, there are four maintenance hangars with the capability to handle technical services from minor technical problems to major aircraft overhaul within the first aircraft maintenance facility at Bangkok International Airport, Don Muang. Additionally the second aircraft maintenance facility at U-Tapao Airport in Rayong province has the capability to overhaul three large aircraft simultaneously as well as to repair equipment and spare parts for

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inflight facility servicing of aircraft belonging to THAI and over 20 customers airlines.

Our Technical Department’s standard maintenance procedure is certified by several leading international aviation authorities, including the US Federal Aviation Administration (FAA), the European Joint Aviation Authorities (JAA), Australia’s CASA and Japan’s JCAB. This year, THAI is proud to receive high confidence and trust from Airbus Industry Co., Ltd. for its excellence in technical maintenance of aircraft models Airbus 300-600 and Airbus 330 by achieving the Technical Dispatch Reliability efficiency at above the worldwide average standard. Moreover, Japan Air System Co., Ltd. has high confidence in THAI technical expertise and has agreed to utilize its services for maintenance of its Airbus 300-B4 aircraft. This is the first time THAI has offered heavy maintenance service to a Japanese airline. An agreement was signed in August 2000.

Realizing its responsibility towards the environment, THAI has been party to a program organized by the World Bank to reduce the use of ozone-depleting chemicals since April 1998. In conjunction with this program, the Technical Department has eliminated the use of CFC113 in its process of cleaning aircraft components, in accordance with the agreement. This year, the Ministry of Industry recognized and awarded THAI Technical Department for its success in protecting the environment from the use of ozone-depleting chemicals in its cleaning process.

Information Technology

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During fiscal year 1999/2000, THAI has successfully put in place a number of IT solutions to add values to their core and support business processes, and has also reformulated IT strategies and plans towards the maximum benefits of customers, business partners, THAI and alliances in the short and long term. These customercentric strategies include the preparation of competent personnel and necessary technological infrastructure to cope with the new technology, the new international airport, Star Alliance initiatives, E-commerce and E-business transformation in the near future.

In customer service areas that customer convenience, safety and benefits always come first, several IT services have been leveraged to ensure the excellent service and optimum customer satisfaction. THAI’s Internet services have been extended to cover THAI flight reservation on THAI website (www.thaiair.com or www.thaiairways.com), THAI cargo information and shipment status tracking on Cargo Homepage (www.thaicargo.com), THAI enterprise information according to Official Information Act, B.E. 2540 on Public Information Homepage. Other new developments include the roll-out of the Customer Information System that helps provide the statistical and analysis information for market planning and decision making. The business requirement of Customer Relationship Management system is being studied, and upon completion, will ensure customer satisfaction and recognition with appropriate response, retain customer loyalty and also attract more new customers. Star Extranet, co-developed with Star Alliance members, has been completed resulting in faster, cost-effective and secure network infrastructure that provides easy access to major application systems across Star Alliance members.

Starnet, the other related network, when completed, will dramatically enhance the information sharing capability and help deliver the better seamless services to passengers.

Moreover, the existing application systems and infrastructure have been enhanced to increase operational efficiency and decrease operational cost.

The new THAI Flight Planning system is being developed to achieve the perfect ratio of fuel consumption and payload for all company flights for all fleets. Revenue Management System is being developed to control flight reservation for optimum revenue. To serve domestic passengers for the initial phase, THAI is developing Electronic ticketing system and Self-Service Kiosk System. For Cargo services, THAI is developing the messages exchange with Custom Department using Electronic Data Interchange/EDI. Furthermore, the IT infrastructure has been enhanced and expanded to boost the overall productivity. The Local Area Network (LAN) facilities, together with Lotus Notes and Intranet Systems have been gradually expanded to other functions in order to improve inter and intra departmental and enterprise communication, coordination and collaboration, and serve as the central knowledge base of all THAI staff. Besides, ISO document management applications on Lotus Notes are being developed to support the ISO 9000 and ISO 14000 implementation in THAI. The front end and back end system will be fully interconnected to meet the new demand of the electronic commerce. Other infrastructure preparation is the establishment of security measures and the installation of the security system to prevent the Internet applications from the malicious or accidental intruders.

19

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20

Human Resource Development Greetings with a warm and welcoming smile in the traditional Thai style or “Wai” by THAI staff have made a memorable impression on our customers for the past 40 years of service. Thus, THAI receives praise and recognition constantly and is a popular airline among its customers. Nevertheless, THAI is still determined to further improve its quality of service. The charm in its service comes mainly from the absorption of Thai cultural values since childhood plus the additional training program provided by the company instilling its staff with a service-mind.

Understanding the importance of quality service, THAI systematically selects candidates who can well perform meticulously in order to choose those who truly understand service from the heart. Additionally, selected candidates should also be resourceful, conscientious and have good self-control in order to handle every situation encountered. To produce candidates with such qualifications, all THAI inflight staff are required to enroll in the 3-month theoretical and 6-month inflight training programs provided.

In 1999, THAI opened a Cabin Crew Training Center to accommodate inflight safety training including emergency and life-saving procedures. This training center also provides both theoretical and practical training that will result in higher efficiency in its inflight service.

The Cabin Crew Training Center is considered one of the largest and most modern training centers in the world. Its main objective is to utilize the advanced technological equipment to provide effective training programs for its crews, and crews of other airlines, to achieving the highest safety standards. This year THAI invested over 5 million baht in building a Computer Based Training (CBT) room.

The purpose of CBT is to provide knowledge about safety through an interactive computer program, which will further enrich staff skills. There are 40 computers within the CBT room that can accommodate a maximum of 80 people per session.

The CBT has been chosen by more than 39 airlines including Lufthansa, Angel Air, and Thai Flying Co., Ltd., to send their crews for inflight safety training.

With efficient human resources, who are specifically selected and well trained, THAI is able to maintain its high standards of quality service. From the survey conducted by Inflight Research Survey (IRS) in mid-year 2000, Thai Airways International Public Co., Ltd. was voted as one of the best airlines in the world in product development and service delivery.

Privatization Thai Airways International Public Co. Ltd., the nation's leading state-owned enterprise, has been chosen by the government to take steps towards privatization.

Such steps will result in an efficient business management operation and further strengthen THAI’s market position and its financial standing. Thus leading the company towards achieving a higher capability in order to complete in the world's aviation industry.

In order to achieve a successful privatization plan, THAI has employed a consortium of financial consultants to analyze and implement the privatization plan.

The consortium comprises Credit Suisse First Boston, Dredsner Klienwort Benson, JF Thanakom, and Asset Plus.

The consortium has prepared the privatization plan which has been submitted for consideration by the THAI “Share Offering” Committee. The Committee has reached a consensus on the basic principles of the privatization plan. On February 15, 2000, the “Share Offering” Committee submitted the plan for the State Enterprise Policy Committee further approval.

The “Share Offering” Committee proposed the selling of THAI shares - consisting of shares currently held by the Ministry of Finance and newly issued shares - to be implemented in order to reduce the government's holding in the ownership of the enterprise to not less than 70 percent of the total shares. The total shares will be allocated for sale with no more than 10 percent of the total registered shares to THAI business alliances, and no more than 13 percent of the total registered shares to public investors. 5 percent of the total newly issued shares will be reserved for the interests of the company’s employees under the Employee Stock Ownership Plan (ESOP).

In order to effectively implement the privatization plan, the State Enterprise Policy Committee also proposed that the cabinet assign the current “Share Offering” Committee authorization for the selection and distribution of shares to business alliances, public investors, and THAI employees. Additionally, the Committee will oversee other related issues in order to carry out such share allocation in accordance to the privatization plan.

On February 28, 2000, the State Enterprise Policy Committee approved the “Share Committee’s” proposal, which was further submitted for the cabinet's approval.

Two weeks later on March 14, 2000, the cabinet reached a consensus and approved the privatization plan of Thai Airways International Public Co., Ltd.

21

Community Activities and Corporate Image As the national flag carrier, THAI was proud to have played a role in publicizing Thailand overseas when the airline was selected as an official carrier transporting Swedish athletes to participate in the “Sydney 2000 Olympics Games”. THAI also participated in the 111th Rose Parade held in Pasadena, U.S.A. in January 2000.

Thailand’s float portrayed exquisite Thai craftsmanship and the country’s beautiful cultural heritage under the theme “Celebrating Majestic Thailand” and won the “Craftsman Award” for the third consecutive year.

Understanding its role in fully supporting the country’s developments and image, THAI continuously participates in various activities. This year’s activities included: 1. Activities in Honor of His Majesty the King and the Royal Family • Organizing presentations in honor of His Majesty the King, conducted

by Dr. Sumet Tantivejkul, President of Pattana Thai Foundation.

• Organizing a project Commemorating the centenary of Her Royal Highness Princess Srinagarindra, the Princess Mother.

• Co-organizing the 5th December celebration of His Majesty the King’s sixth cycle birthday.

• Organizing a concert “Heart of the Kingdom” in celebration of Her Majesty the Queen Sirikit of Thailand’s birthday, to commemorate her royal activities in raising living standards for the people of Thailand.

• Providing donations in support of the construction of Siriraj Hospital’s Emergency Building.

• Presenting a fully equipped ambulance to Her Royal Highness Princess Maha Chakri Sirindhorn for use by the elderly at the Chalerm Raja Kumari Institute.

• Providing donations to “Somdet Ya’s Fund for Development of the Petanque Sports” to sponsor activities held by the Petanque Association of Thailand.

• Sponsoring a multi-media presentation called “Thor Satit Nai Duang Jai Thai Tua La” and distributing the book “King Bhumibol: Strength of the Land”.

• Sponsoring a multi-media presentation titled “Chao Phraya: The River of Kings,” in celebration of His Majesty the King’s sixth cycle birthday.

22

2. Other Social Contributions • Volunteering to transport eye lenses from Katmandu to the Eye Center of the Red Cross Association in Bangkok.

• Co-organizing with the THAI Elephant Village Surin Foundation under the “Thai Youths Help Protect Elephant" project, to provide knowledge to the community to encourage villagers to bring back elephants to their original habitat.

• Coordinating and participating in the fund raising activities to support the restoration of the Phra Tat Dhoi Kham Temple.

• Supporting “When Their Dreams Come True” Program for underprivileged children from Phuket.

• Supporting the “Thai Export Promotion Days 2000” exhibition.

• Participating in opening a distribution booth at the Annual Red Cross Fair 2000.

• Sponsoring several sports competitions, including the Golf Competition Senior Tour, the International King's Cup Jet Ski Competition, Snooker Competition, etc.

23

24

R eview of 1999/2000 Finance

THAI and its subsidiaries earned a consolidated pre-tax profit of 4,915 million baht for the fiscal year 1999/2000 (ending on September 30, 2000). Net profit was 4,717 million baht, an increase of 10 million baht or 0.2% from previous fiscal year resulting in a net earnings per share of 3.37 baht.

There were two major factors that led to THAI’s significant increase in its revenue the country’s economic recovery with main focus on exports and the increase in the number of tourists visiting Thailand. Tourism, especially in the number of foreign tourists for the first nine months of the year 2000, had significantly increased by 10.8% as compared to the same period of previous year. Total operating profit in this fiscal year for both THAI and its subsidiaries was 121,712 million baht, which was higher than previous year’s operating profit by 14,059 million baht or equivalent to 13.1%. However, the consistent increase in oil prices controlled by OPEC led to an increase of 66.8% in fuel costs as compared to previous year. This is also a major factor that led to an increase in the operating expenses. While total operating expenses were 106,780 million baht, an increase of 15,919 million baht or 17.5% over last year, the total profit of 14,932 million baht from operations decreased from last year by 1,860 million baht or 11.1%.

This year, THAI had changed its accounting policy on two items – a deferred charge, which was recognized as an asset and amortized within 5 years to be recorded fully as an expense in the Company’s income statement and the staff welfare fees, which were recognized as expenses in the following year to be recorded as expenses in the year incurred. In order to enable effective comparison, the 1998/1999 financial statements were adjusted and restated accordingly.

25

Production

Financial Position THAI’s total registered capital was 16,000 million baht, which consisted of 1,600

(MATK)

million ordinary shares with par value of 10 baht per share. Total paid-up capital 7,752

6,838

5,789

5,000

6,473

6,000

7,309

7,000

amounted to 14,000 million baht, which was equivalent to 1,400 million shares.

The changes in accounting practices resulted in some adjustments to the fiscal year 1998/1999 financial statements, which led to the accumulated deficit of 14,953 million baht. When combined with the fiscal year 1999/2000 net profit of 4,717 million baht, the accumulated deficit ending September 30, 2000 amounted to 10,236 million baht. Total shareholders’ equity at the end of the fiscal year stood at 9,602 million baht, as compared to 4,830 million baht in previous year.

1996 1997 1998 1999 2000

At the end of fiscal year 1999/2000, THAI and its subsidiaries’ liabilities amounted to 158,125 million baht and long-term liabilities totalled 119,375 million baht, which was an increase of 16,232 million baht or 15.7% from previous year. Of the total liabilities, 19,000 million baht is due for repayment within one year.

In this fiscal year, THAI had issued the promissory notes to the Government Saving Bank and THAI employees’ Saving and Credit Coops Ltd. in the amounted of 10,526 million baht as payment for the purchase of two aircraft. Debt to equity ratio decreased

Traffic

from 29.2 times in fiscal year 1998/1999 to only 16.5 times at the end of fiscal year 1999/2000.

(MRTK)

Total assets at September 30, 2000 stood at 167,727 million baht,

4,585

5,097

3,940

3,000

4,466

4,000

5,469

5,000

an increase of 22,120 million baht or 15.2% over previous year since obligations under capital lease increased by 22,958 million baht or 141.8%. Current ratio is equivalent to 0.83, an increase from fiscal year 1998/1999’s 0.82.

Investments THAI’s investments in fixed assets totalled 30,920 million baht, an increase of 26,169 million baht compared to previous year. Of the total, investment in flight

1996 1997 1998 1999 2000

equipment amounted to 29,859 million baht, while the remaindes was invested in land, buildings and improvements, flight simulators, computers, vehicles, aircraft maintenance equipment and catering equipment.

26

Passenger Traffic

Inventories and Supplies Inventories and supplies at the end of September 2000 stood at 3,490

(MRPK)

million baht, a decrease of 271 million baht or 7.2% on the previous year’s 3,761 million baht.

32,969

37,642

29,226

20,000

31,288

30,000

41,347

40,000

Production and Traffic This year’s production and traffic has increased when compared to previous year as a result of continuous expansion and improvement of the fleet. By boosting traffic rate over production, the overall load factor of 70.6% was, therefore, higher than previous year’s 69.7%.

1996 1997 1998 1999 2000

1999/2000 MATK

7,752

+

6.1%

Traffic

MRTK

5,469

+

7.3%

%

70.6

+

0.9

Passenger Production

MASK

55,517

+

7.2%

Passenger Traffic

MRPK

41,347

+

9.8%

Load Factor

Freight Traffic

Cabin Factor Freight Production

(MRFTK)

Freight Traffic 1,690

1,548

1,644

1,266

1,000

1,598

1,500

500

Change

Production

Freight Load Factor

%

74.5

+

1.8

MADTK

2,756

+

4.1%

MRFTK

1,690

+

2.8%

%

61.3

-

0.8

Total Passenger carried was 17,700,452 persons, which was an increase of 1,369,944 persons or 8.4% from previous year. The total number of block hours registered was 255,668 hours, an increase of 11,603 hours or 4.8%. As for aircraft utilization, the average flight hours were 9.3 per day.

1996 1997 1998 1999 2000

27

Load Factor

Revenue THAI and its subsidiaries had total revenue of 123,352 million baht in fiscal

(%)

year 1999/2000, which represented an increase of 11,199 million baht or 10.0% over last year.

67.0

69.7

68.1

69.0

60

(million baht)

70.6

70

1999/2000 Passengers

85,118

Excess Baggage

50

505

Freight 1996 1997 1998 1999 2000

Change + 14.2% +

6.3%

19,573

+

11.7%

Mail

611

-

9.1%

Charter

463

-

20.2%

Total transportation revenue

106,270

Other activities revenue

15,190

Revenue from subsidiary companies Total operating revenue

+ 13.3% +

252 121,712

Other income

1,640

Total revenue

123,352

9.4% -

+ 13.1% -

63.6%

+ 10.0%

Transportation Revenue and Yields Revenue from transportation totalled 106,270 million baht, an increase from previous year of 12,498 million baht or 13.3%. There was also an increase in passenger revenue of 10,602 million baht or 14.2%, as well as an increase in freight revenue of 2,044 million baht, which is equivalent to 11.7%.

1999/2000

Change

System-wide

(Baht/RTK)

19.43

+

5.6%

Passenger

(Baht/RPK)

2.07

+

4.0%

(Baht/RFTK)

11.59

+

8.7%

Freight

The increase in yield this year was due to two factors - an increase in the domestic air fares and depreciation in the value of the baht when compared to previous year.

28

Number of Passengers

Other Activities Revenue Total revenue from other activities amounted to 15,190 million baht, an increase

(Million persons)

of 1,309 million baht or 9.4% over previous year. (million baht)

17.7

15.2

14.3

15.2

13

16.3

16

1999/2000 Catering services

3,408

+

Domestic catering and restaurant

1,025

+

3.6%

305

+

13.0%

10,329

+

14.1%

102

-

10.5%

21

-

91.7%

15,190

+

9.4%

Limousine services

10

Ground handling and services to air carriers Sales on board 1996 1997 1998 1999 2000

Change

Agent distribution services Total

6.4%

Revenue from Subsidiary Companies In fiscal year 1999/2000, THAI had additional revenue of 252 million baht from its subsidiary company Thai-Amadeus Southeast Asia Co., Ltd., which has began operations on November 1, 2000.

Other Revenues Other revenues in fiscal year 1999/2000 amounted to 1,640 million baht, a 63.6% decrease from previous year’s 2,860 million baht. (million baht) 1999/2000

Change

Share of net profit from associated companies

165

+

3.1%

Interest Income

380

-

30.7%

Revenue from insurance compensation

26

-

93.7%

Gains on sales of assets

766

-

68.9%

Other

303

-

67.0%

1,640

-

63.6%

Total

In this fiscal year, THAI gained 741 million baht from its sales of two Airbus 300-B4s aircraft to Airbus Industry Co., Ltd. Profit sharing from its investment in associated companies totalled 165 million baht, which was 37 million baht from Royal Orchid Hotel (Thailand) Public Co., Ltd., 57 million baht from Donmuang International Airport Hotel Co., Ltd., 59 million baht from Bangkok Aviation Fuel Services Public Co. Ltd., and 12 million baht from Phuket Air Catering Co., Ltd.

29

Operating Revenues

Expenses Total expenses for THAI and its subsidiaries amounted to 118,437 million baht

(Million Baht)

in this fiscal year, which is an increase of 12,143 million baht or 11.4% from 121,712

105,493

78,022

84,687

50,000

107,653

100,000

previous year. (million baht) Flight operations Maintenance & overhaul

10,000

1996 1997 1998 1999 2000

1999/2000

Change

23,043

+ 53.1%

9,101

+

11.8%

Ground operations

16,104

+

8.7%

Passenger services

13,297

+

11.0%

Marketing

12,520

Administration & general Remuneration to Board of Directors Lease of aircraft & spare parts

1,814 4 10,573

+ 10.3% +

1.7%

+ 300.0% +

9.7%

Depreciation of aircraft

7,345

+ 17.6%

Depreciation of other fixed assets

1,777

+ 24.1%

Total transportation expenses

95,578

+ 18.8%

Other activities expenses

11,105

+

Subsidiary companies expenses Total operating expenses

97 106,780

6.6% -

+ 17.5%

Other expenses

11,657

-

24.5%

Total expenses

118,437

+

11.4%

Transportation Expenses Total transportation expenses in this fiscal year amounted to 95,578 million baht, an increase of 15,136 million baht or equivalent to 18.8% from previous year.

The higher expense incurred this year was due to the depreciation of Thai baht and the consistent increase in worldwide oil prices resulting in higher fuel costs by 7,486 million baht or 66.8% as compared to previous year.

30

Profit Before Tax

Other Activities Expenses The expenses of other activities in this fiscal year 2000 totalled 11,105 million

(Million Baht)

baht representing an increase of 687 million baht or 6.6% from last year. (million baht) 6,393

6,000

4,886

4,000

Catering services 4,915

5,268

5,000

1999/2000

4,004 1996 1997 1998 1999 2000

Domestic catering and restaurant Limousine services

Change

2,469

+

5.7%

860

+

10.4%

346

+

9.8%

7,420

+

7.5%

Sales on board

7

-

87.0%

Agent distribution services

3

-

90.3%

11,105

+

6.6%

Ground handling and services to air carriers

Total

Subsidiary Companies Expenses Expenses from subsidiaries in this fiscal year amounted to 97 million baht, which was mainly from Thai-Amadeus Southeast Asia Co., Ltd. and Thai Information Solutions Co., Ltd.

Other Expenses Other expenses in fiscal year 1999/2000 totalled 11,657 million baht, a decrease of 3,776 million baht or 24.5% over the previous year. (million baht) 2000

Change

Interest expenses

6,838

+

7.0%

Loss on foreign currency exchange

3,301

-

59.0%

57

-

38.7%

1,461

+

63.4%

11,657

-

24.5%

Pension fund Others Total

Net Profit of Minority Interest In this fiscal year, net profit of minority interest amounted to 48 million baht, represented by a 45% share of net income from Thai-Amadeus Southeast Asia Co., Ltd. which the telephone Organization of Thailand, the Communications Authority of Thailand and Amadeus Marketing (Spain) Co., Ltd. held 20%, 20% and 5% of total shares respectively.

31

T en-Year Review

The Company Number of Aircraft Flight Hours Available Ton-Kilometres Revenue Ton-Kilometres Load Factor Number of Passengers Available Seat-Kilometres Revenue Passenger-Kilometres Cabin Factor Available Dead Load Ton-Kilometres Revenue Freight Ton-Kilometres Freight Load Factor Number of Personnel Profitability (Result before Tax) Notes :

(Block Hours) (Million) (Million) (%) (000) (Million) (Million) (%) (Million) (Million) (%) (People) (Million Baht)

1999/2000

1998/1999

1997/1998

79 255,668 7,752 5,469 70.6 17,700 55,517 41,347 74.5 2,756 1,690 61.3 25,632 4,820.3

79 244,065 7,309 5,097 69.7 16,331 51,788 37,642 72.7 2,648 1,644 62.1 24,148 6,392.7

77 238,696 6,838 4,585 67.0 15,199 48,557 32,969 67.9 2,468 1,548 62.7 24,222 5,268.2

(1) All data shown for fiscal year from October 1-September 30, or as at September 30.

(2) The changing of accounting policies in fiscal year 2000 are not applicable to those used in the previous years.

Definition of Avition Terms Available Ton-Kilometres (ATK) Capacity offered for sale expressed as aircraft payload multiplied by flown kilometres.

Revenue Ton-Kilometres (RTK) Capacity sold expressed as tons of load carried multiplied by flown kilometres.

Load Factor Revenue ton-kilometres expressed as percentage of available ton-kilometres.

Available Seat-Kilometres (ASK) Passenger capacity offered for sale expressed as number of seats multiplied by flown kilometres.

Revenue Passenger-Kilometres (RPK) Passenger capacity sold expressed as number of passengers multiplied by flown kilometres.

32

1996/1997

1995/1996

1994/1995

1993/1994

1992/1993

1991/1992

1990/1991

76 233,495 6,473 4,466 69.0 15,178 45,353 31,288 69.0 2,391 1,598 66.8 24,072 4,004.1

73 211,818 5,789 3,940 68.1 14,308 42,099 29,226 69.4 2,000 1,266 63.3 22,136 4,885.6

69 201,973 5,469 3,755 68.7 12,834 39,795 26,558 66.7 1,864 1,320 70.8 21,541 4,595.6

61 186,321 5,011 3,467 69.2 11,502 36,279 24,733 68.2 1,746 1,197 68.6 19,944 4,212.2

62 175,931 4,662 3,066 65.8 10,183 33,878 22,208 65.6 1,613 1,020 63.2 19,560 1,380.8

67 172,924 4,461 2,781 62.3 8,720 32,263 20,226 62.7 1,558 908 58.3 19,286 4,381.1

60 162,395 4,023 2,562 63.7 8,081 28,701 18,319 63.8 1,442 864 59.5 18,272 5,086.4

Cabin Factor Revenue passengers-kilometres expressed as percentage of available seat-kilometres.

Available Dead Load Ton-Kilometres (ADTK) Capacity offered of aircraft pay load after deduction of weight of the load of passengers multiplied by flown kilometres.

Revenue Freight Ton-Kilometres (RFTK) Freight capacity sold expressed as tons of freight carried multiplied by flown kilometres.

Freight Load Factor Revenue freight-kilometres expressed as percentage of available dead load ton-kilometres.

Aircraft Payload Weight of the load of passengers, cargo and other load carried on a fully loaded aircraft using the average density of cargo.

33

A udit Committee’s Report

To the Shareholders,

The Audit Committee consisted of 3 persons, all of whom are members on the Board of Directors and concern with neither management nor staff of the company.

We attended the meeting 5 times in order to discuss and interchange ideas upon the internal audit conclusion, evaluation of internal control and the total quality of financial statement including the process of producing the activities and financial report for the fiscal year 2000.

The Audit Committee has held a meeting with the Government Auditors to discuss the accounting audit for the fiscal year 2000 and was informed that it was not aware of any event, which would materially affect the company’s operations.

(Mr. Poonsup Piya-anant) Chairman of the Audit Committee November 23, 2000

34

No. 0021/1274

The State Audit Office Rama VI Road, Phayathai, Bangkok 10400

This letter is given to confirm that the English version of the Report of Independent Auditor together with the financial statements for the years ended September 30, 2000 and 1999 of Thai Airways International Public Company Limited and the consolidated financial statements for the years ended September 30, 2000 and 1999 of Thai Airways International Public Company Limited and its subsidiaries was translated by Thai Airways International Public Company Limited. The State Audit Office has reviewed the aforementioned translated Report of Independent Auditor and the financial statements and found that they were translated from that of the Thai version.

Given on November 23, 2000

(Pradharn Darbphechra) Acting the Governor of the State Audit Office

35

O fficial Translation Report of Independent Auditor

To : The Shareholders of Thai Airways International Public Company Limited

1. The State Audit Office has audited the accompanying consolidated and the Company balance sheets as at September 30, 2000 and 1999, the related consolidated and the Company statements of income, changes in shareholders’ equity, retained earnings and cash flows for the years then ended of Thai Airways International Public Company Limited and its subsidiaries. These financial statements are the responsibility of the Companies’ management as to their correctness and completeness of the presentation. The responsibility of the State Audit Office is to express an opinion on these financial statements based on its audits.

2. The State Audit Office conducted the audits in accordance with generally accepted auditing standards. Those standards require that the State Audit Office plans and performs the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. The State Audit Office believes that the audits provide a reasonable basis for the opinion.

36

3. In the opinion of the State Audit Office, the consolidated and the Company financial statements referred to above present fairly, in all material respects, the consolidated and the Company financial position as at September 30, 2000 and 1999, the results of the consolidated and the Company operations, the accumulated results of the consolidated and the Company operations, changes in the consolidated and the Company shareholders’ equity and the consolidated and the Company cash flows for the years then ended of Thai Airways International Public Company Limited and its subsidiaries, in conformity with generally accepted accounting principles.

4. Without qualifying opinion on the financial statements, the State Audit Office draws attention to Note 3.1 to the financial statements regarding the change in accounting policy and accounting estimates for deferred charges and staff welfare fees as well as Note 3.6.2 to financial statements regarding other investments and Note 3.19 to the financial statements regarding additional taxes paid to the Revenue Department.

(Signed) Pradharn Darbphechra (Pradharn Darbphechra) Acting the Governor of the State Audit Office

(Signed) Oraphin Patamalikitskul (Oraphin Patamalikitskul) Auditor-in-Charge

The State Audit Office November 17, 2000

37

B alance Sheets As at September 30, 2000 and 1999

Thai Airways International Public Company Limited and Subsidiaries

(Unit : Baht) CONSOLIDATED

Accounting Supplementary ASSETS

Policies

2000

1999

THE COMPANY

2000

(new adjustment)

Information

1999 (new adjustment)

Current Assets Cash and bank balances

9,450,166,640

4,899,937,640

9,358,886,656

4,884,513,997

Short-term investments

4,115,271,554

5,029,878,285

3,978,038,139

4,897,136,762

3.3

12,058,680,719

10,570,958,228

12,057,961,974

10,570,958,228

3.4

3,490,188,256

3,760,593,391

3,490,188,256

3,760,593,391

Prepaid expenses and deposits

4,375,002,605

3,010,139,795

4,374,763,239

3,010,057,319

Tax refund

4,778,814,038

1,940,636,741

4,778,814,038

1,940,636,741

2,815,914,920

9,320,925,881

2,786,109,235

9,360,181,465

41,084,038,732

38,533,069,961

40,824,761,537

38,424,077,903

Accounts receivable (less allowance for doubtful accounts amounting to Baht 653,157,822 on 30 September 2000 and Baht 668,865,519 on 30 September 1999) 2.1 Inventories and supplies

2.2

Other current assets

3.5

Total Current Assets Investments

2.3

3.6

Investment in associated companies

3.6.1

820,665,920

749,060,956

987,929,778

858,003,014

Other investments

3.6.2

101,665,446

220,240,949

101,665,446

220,240,949

922,331,366

969,301,905

1,089,595,224

1,078,243,963

Aircraft

61,882,926,773

62,760,163,128

61,882,926,773

62,760,163,128

Aircraft under capital leases

39,151,454,599

16,192,963,725

39,151,454,599

16,192,963,725

Revolving aircraft spare parts

8,872,308,925

7,543,716,554

8,872,308,925

7,543,716,554

Land, buildings and improvements

4,123,008,982

4,145,887,269

4,123,008,982

4,145,887,269

Other plant and equipment

4,123,681,702

4,806,764,538

4,113,219,241

4,806,764,538

118,153,380,981

95,449,495,214

118,142,918,520

95,449,495,214

5,998,117,168

9,478,198,057

5,998,117,168

9,478,198,057

Total Investments Property, Plant and Equipment - Net

2.4

3.7

Total Property, Plant and Equipment - Net Other Assets Concessions for acquisitions of aircraft

2.5

and engines Loan for investment in aircraft spare parts

36,688,523

40,146,686

36,688,523

40,146,686

Deferred income taxes

1,532,467,353

1,136,515,775

1,532,467,353

1,136,515,775

Total Other Assets

7,567,273,044

10,654,860,518

7,567,273,044

10,654,860,518

167,727,024,123 145,606,727,598

167,624,548,325

145,606,677,598

Total Assets

3.8

The accompanying notes are an integral part of these financial statements.

38

(Unit : Baht) CONSOLIDATED

Accounting Supplementary LIABILITIES AND SHAREHOLDERS’ EQUITY

Policies

2000

THE COMPANY

1999

2000

(new adjustment)

Information

1999 (new adjustment)

Current Liabilities Accounts payable

2,206,276,733

2,276,492,113

2,206,276,733

2,276,492,113

3.9

11,968,544,716

13,826,672,173

11,968,544,716

13,826,672,173

3.10

5,955,569,677

5,666,290,057

5,955,569,677

5,666,290,057

3.11

1,076,000,000

-

1,076,000,000

-

12,907,469,051

11,804,344,956

12,907,389,051

11,804,294,956

27,064,347

27,267,833

27,064,347

27,267,833

57,554,716

15,696,238

11,546,343

15,696,238

11,425,548,195

9,711,927,614

11,425,548,195

9,711,927,614

3,872,047,445

3,461,887,011

3,870,728,236

3,461,887,011

49,496,074,880

46,790,577,995

49,448,667,298

46,790,527,995

Debts due within one year Long-term loans Obligations under capital leases

2.6

Promissory notes Other current liabilities Accrued expenses Accrued dividends

3.14

Accrued income taxes Unearned transportation revenue Other current liabilities Total Current Liabilities Long-term Liabilities Long-term loans

3.9

48,353,922,100

56,646,958,327

48,353,922,100

56,646,958,327

Obligations under capital leases

3.10

42,570,954,884

27,003,106,149

42,570,954,884

27,003,106,149

Promissory notes

3.11

9,450,000,000

-

9,450,000,000

-

Total Long-term Liabilities

100,374,876,984

83,650,064,476

100,374,876,984

83,650,064,476

Other Liabilities Staff pension fund

3.22

3,171,023,980

2,437,603,643

3,171,023,980

2,437,603,643

Deferred concessions to reduce cost of aircraft

3.12

5,083,534,294

7,898,864,242

5,083,534,294

7,898,864,242

8,254,558,274

10,336,467,885

8,254,558,274

10,336,467,885

158,125,510,138

140,777,110,356

158,078,102,556

140,777,060,356

16,000,000,000

16,000,000,000

16,000,000,000

16,000,000,000

14,000,000,000

14,000,000,000

14,000,000,000

14,000,000,000

4,750,000,000

4,750,000,000

4,750,000,000

4,750,000,000

1,032,785,577

1,032,785,577

1,032,785,577

1,032,785,577

(10,236,339,808) (14,953,168,335)

(10,236,339,808)

(14,953,168,335)

Total Other Liabilities Total Liabilities Shareholders’ Equity Share capital Registered: 1,600 million ordinary shares, par value of Baht 10 each Issued and fully paid 1,400 million ordinary shares of Baht 10 each Share premium Retained earnings (deficit) Appropriated Legal reserve Unappropriated

3.13

Minority interest Total Shareholders’ Equity Total Liabilities and Shareholders’ Equity

55,068,216

-

-

4,829,617,242

9,546,445,769

4,829,617,242

167,727,024,123 145,606,727,598

167,624,548,325

145,606,677,598

9,601,513,985

-

The accompanying notes are an integral part of these financial statements.

(Signed) Bhisit Kuslasayanon (Bhisit Kuslasayanon) President

(Signed) Amnuay Chanya (Amnuay Chanya) Executive Vice President Finance and Information

39

S tatements of Income for the years ended September 30, 2000 and 1999

Thai Airways International Public Company Limited and Subsidiaries

(Unit : Baht) CONSOLIDATED

Accounting Supplementary Policies

2000

THE COMPANY

1999

2000

(new adjustment)

Information

1999 (new adjustment)

Operating Revenues Passenger and excess baggage

2.7.1

86,086,487,236

75,570,733,735

86,086,487,236

75,570,733,735

Freight

2.7.2

19,572,741,095

17,528,841,849

19,572,741,095

17,528,841,849

610,574,377

672,071,080

610,574,377

672,071,080

15,441,965,422

13,881,305,498

15,189,845,388

13,881,305,498

121,711,768,130 107,652,952,162

121,459,648,096

107,652,952,162

Mail Other activities

3.15

Total Operating Revenues Other Revenues Share of net profit (loss) from subsidiary companies

-

Share of net profit from associated companies

164,871,363

Interest income Other income Total Other Revenues Total Revenues

3.16

160,075,104

65,071,801

7,774,175

164,871,363

160,075,104

379,737,476

548,314,526

375,163,862

539,997,785

1,095,315,741

3,791,753,529

1,095,315,741

3,791,753,529

1,639,924,580

4,500,143,159

1,700,422,767

4,499,600,593

123,351,692,710

112,153,095,321

123,160,070,863

112,152,552,755

23,042,368,514

15,054,133,436

23,042,368,514

15,054,133,436

Operating Expenses Flight operations Maintenance and overhaul

9,100,795,314

8,136,785,579

9,100,795,314

8,136,785,579

Ground operations

16,104,185,575

14,816,913,119

16,104,185,575

14,816,913,119

Passenger services

13,297,235,072

11,981,457,902

13,297,235,072

11,981,457,902

Marketing

12,520,215,012

11,349,988,640

12,520,215,012

11,349,988,640

1,911,052,204

1,784,072,454

1,814,300,819

1,783,548,248

4,064,069

1,003,290

4,001,469

984,930

10,572,912,022

9,641,516,483

10,572,912,022

9,641,516,483

7,345,273,880

6,244,960,075

7,345,273,880

6,244,960,075

Administration and general Remuneration to board of directors Lease of aircraft and spare parts Depreciation of aircraft Depreciation of other fixed assets Other activities Total Operating Expenses

1,776,702,409

1,431,752,967

1,776,272,893

1,431,752,967

11,105,077,029

10,418,340,963

11,105,077,029

10,418,340,963

106,779,881,100

90,860,924,908

106,682,637,599

90,860,382,342

The accompanying notes are an integral part of these financial statements.

40

(Unit : Baht) CONSOLIDATED

Accounting Supplementary Policies

2000

THE COMPANY

1999

2000

(new adjustment)

Information

1999 (new adjustment)

Other Expenses Interest expenses

6,837,668,353

6,392,793,607

6,837,668,353

6,392,793,607

Losses (Gains) on foreign currency exchange

3,300,814,088

8,053,047,731

3,300,814,088

8,053,047,731

Yields from pension fund Other expenses Total Other Expenses Total Expenses Profit (losses) before income tax

3.17

56,912,828

93,321,681

56,912,828

93,321,681

1,461,818,814

893,963,794

1,461,776,032

893,963,794

11,657,214,083

15,433,126,813

11,657,171,301

15,433,126,813

118,437,095,183 106,294,051,721

118,339,808,900

106,293,509,155

4,914,597,527

5,859,043,600

4,820,261,963

5,859,043,600

149,450,784

1,151,714,254

103,433,436

1,151,714,254

Profit (losses) before minority interest

4,765,146,743

4,707,329,346

4,716,828,527

4,707,329,346

Net profit (losses) of minority interest

48,318,216

Income tax

Net profit (losses) for the year

4,716,828,527

4,707,329,346

-

-

4,716,828,527

4,707,329,346

3.37

3.36

Earnings (losses) per share : Net profit (losses)

3.37

3.36

The accompanying notes are an integral part of these financial statements.

(Signed) Bhisit Kuslasayanon (Bhisit Kuslasayanon) President

(Signed) Amnuay Chanya (Amnuay Chanya) Executive Vice President Finance and Information

41

S t a t e m e n t s o f C h a n g e s i n S h a r e h o l d e r s’ E q u i t y for the years ended September 30, 2000 and 1999

Thai Airways International Public Company Limited and Subsidiaries

(Unit : Baht) CONSOLIDATED

Accounting Supplementary Policies

2000

THE COMPANY

1999

2000

(new adjustment)

Information

1999 (new adjustment)

Share capital Common stocks At the beginning of the year

14,000,000,000

Increase during the year

-

At the end of the year

14,000,000,000 -

14,000,000,000

14,000,000,000

-

-

14,000,000,000

14,000,000,000

14,000,000,000

14,000,000,000

4,750,000,000

4,750,000,000

4,750,000,000

4,750,000,000

-

-

Capital Surplus Premium on share capital At the beginning of the year Increase during the year

-

At the end of the year

-

4,750,000,000

4,750,000,000

4,750,000,000

4,750,000,000

1,032,785,577

1,032,785,577

1,032,785,577

1,032,785,577

-

-

1,032,785,577

1,032,785,577

1,032,785,577

(9,823,161,317) (15,373,026,746)

(9,823,161,317)

(15,373,026,746)

Retained earnings (deficit) Appropriated Legal reserve At the beginning of the year Increase during the year

-

At the end of the year

-

1,032,785,577

Unappropriated Balance at the beginning of the year, before adjusting Cumulative effect of change in accounting policy income tax in accordance with the new revised accounting standard Adjustment of income tax

477,553,224

746,439,529

477,553,224

746,439,529

(1,917,534,217)

(1,636,765,336)

(1,917,534,217)

(1,636,765,336)

(23,314,907)

(31,086,543)

Adjustment of subsidiary companies’ retained earnings

-

-

Cumulative effect of change in accounting policy with regard to deferred charges

3.1.1

(1,953,224,999)

(1,758,818,963)

(1,929,910,092)

(1,727,732,420)

3.1.2

(1,736,801,026)

(1,638,326,165)

(1,736,801,026)

(1,638,326,165)

(14,953,168,335) (19,660,497,681)

Cumulative effect of change in accounting policy with regard to staff welfare fees Balance at the beginning, after adjusting Increase (decrease) during the year At the end of the year

(14,953,168,335)

(19,660,497,681)

4,707,329,346

4,716,828,527

4,707,329,346

(10,236,339,808) (14,953,168,335)

(10,236,339,808)

(14,953,168,335)

4,716,828,527

Minority interest At the beginning of the year

-

-

-

-

Increase during the year

55,068,216

-

-

-

At the end of the year

55,068,216

-

-

-

9,546,445,769

4,829,617,242

Total shareholders’ equity

9,601,513,985

4,829,617,242

The accompanying notes are an integral part of these financial statements.

(Signed) Bhisit Kuslasayanon (Bhisit Kuslasayanon) President

42

(Signed) Amnuay Chanya (Amnuay Chanya) Executive Vice President Finance and Information

S tatements of Retained Earnings for the years ended September 30, 2000 and 1999

Thai Airways International Public Company Limited and Subsidiaries

(Unit : Baht) CONSOLIDATED

Accounting Supplementary Policies

2000

THE COMPANY

1999

2000

(new adjustment)

Information

1999 (new adjustment)

Unappropriated retained earnings (deficit) At the beginning of the year

(9,823,161,317) (15,373,026,746)

(9,823,161,317)

(15,373,026,746)

Adjustment of the year : - Cumulative effect of change in accounting policy income tax in accordance with the new revised accounting standard - Adjustment of income tax

477,553,224

746,439,529

477,553,224

746,439,529

(1,917,534,217)

(1,636,765,336)

(1,917,534,217)

(1,636,765,336)

(23,314,907)

(31,086,543)

- Adjustment of subsidiary companies’ retained earnings

-

-

- Cumulative effect of change in accounting policy with regard to deferred charges

3.1.1

(1,953,224,999)

(1,758,818,963)

(1,929,910,092)

(1,727,732,420)

3.1.2

(1,736,801,026)

(1,638,326,165)

(1,736,801,026)

(1,638,326,165)

(14,953,168,335) (19,660,497,681)

- Cumulative effect of change in accounting policy with regard to staff welfare fees Unappropriated retained earnings (deficit) at the beginning of the year after adjustment Add Profit for the year Total unappropriated retained earnings (deficit)

(14,953,168,335)

(19,660,497,681)

4,707,329,346

4,716,828,527

4,707,329,346

(10,236,339,808) (14,953,168,335)

(10,236,339,808)

(14,953,168,335)

4,716,828,527

Appropriated retained earnings Legal reserve

1,032,785,577

1,032,785,577

1,032,785,577

1,032,785,577

Total appropriated retained earnings

1,032,785,577

1,032,785,577

1,032,785,577

1,032,785,577

(9,203,554,231) (13,920,382,758)

(9,203,554,231)

(13,920,382,758)

Total retained earnings (deficit) at the end of the year

The accompanying notes are an integral part of these financial statements.

(Signed) Bhisit Kuslasayanon (Bhisit Kuslasayanon) President

(Signed) Amnuay Chanya (Amnuay Chanya) Executive Vice President Finance and Information

43

S tatements of Cash Flows for the years ended September 30, 2000 and 1999

Thai Airways International Public Company Limited and Subsidiaries

(Unit : Baht) CONSOLIDATED

Accounting Supplementary Policies

2000

THE COMPANY

1999

2000

(new adjustment)

Information

1999 (new adjustment)

Cash flows from operating activities Net profit for the year

4,716,828,527

4,707,329,346

4,716,828,527

4,707,329,346

Depreciation

9,121,976,289

7,676,713,042

9,121,546,773

7,676,713,042

Profit sharing from joint venture according to equity method

(164,871,364)

(160,075,104)

(229,943,165)

(167,849,279)

Gains on sales of assets

(766,106,027)

(2,459,730,847)

(766,106,027)

(2,459,730,847)

Losses on foreign currency exchange

4,777,161,528

8,418,964,568

4,777,161,528

8,418,964,568

Net profit (losses) of minority interest

48,318,216

-

-

-

668,027,967

514,769,929

668,027,967

514,769,929

18,401,335,136

18,697,970,934

18,287,515,603

18,690,196,759

(1,484,598,318)

(343,363,078)

(1,483,879,572)

(343,363,078)

Adjustment to reconcile net profit to net cash provided by (used in) operating activities :

Allowance for doubtful accounts, impairment in value of assets and reserve for obsolete inventories Operating profit before changes in operating assets and liabilities Decrease (increase) in operating assets : Accounts receivable Inventories and supplies

(280,143,877)

216,645,742

(280,143,877)

216,645,742

Prepaid expenses and deposits

(1,226,821,899)

(818,357,641)

(1,226,706,103)

(818,357,641)

Tax refund

(2,838,222,669)

(1,940,719,218)

(2,838,177,296)

(1,940,636,742)

Other current assets

6,533,228,220

(5,713,546,523)

6,602,289,489

(5,714,019,990)

Deferred income taxes

(395,951,578)

82,880,593

(395,951,578)

82,880,593

266,831,879

(193,686,229)

266,831,879

(193,686,229)

Concessions for acquisitions of aircraft and engines Increase (decrease) in operating liabilities : Cumulative effect of change in accounting policy Accounts payable Accrued expenses and other current assets Staff pension fund Unearned transportation revenue Net cash provided by operating activities

(45,842,735)

292,236,032

(46,874,395)

292,236,032

1,660,861,445

(118,974,896)

1,614,531,244

(118,974,896)

733,420,337

379,669,811

733,420,337

379,669,811

1,713,620,581

413,548,014

1,713,620,581

413,548,014

23,037,716,522

10,954,303,541

22,946,476,312

10,946,138,375

The accompanying notes are an integral part of these financial statements.

44

(Unit : Baht) CONSOLIDATED

Accounting Supplementary Policies

2000

THE COMPANY

1999

2000

(new adjustment)

Information

1999 (new adjustment)

Cash flows from investing activities Cash paid for acquisition of fixed assets Cash received from sales of assets

(12,070,560,135)

(5,084,288,236)

(12,059,668,158)

(5,084,288,236)

1,123,421,572

4,202,686,941

1,123,421,572

4,202,686,941

Investment

86,634,423

102,219,709

86,634,423

102,219,709

Cash received from loan for investing in aircraft spare parts

4,265,800

67,920,200

4,265,800

67,920,200

Other assets

-

1,722,184,190

(10,856,238,340)

1,010,722,804

(10,845,346,363)

1,010,722,804

(19,081,974,841)

(12,112,368,677)

(19,081,974,841)

(12,112,368,677)

Net cash provided by (used in) investing activities

-

1,722,184,190

Cash flows from financing activities Cash paid for repayment of long-term loans Cash received from promissory notes

10,526,000,000

Dividends paid

-

10,526,000,000

-

(203,486)

(656,787)

(203,486)

(656,787)

(8,556,178,327)

(12,113,025,464)

(8,556,178,327)

(12,113,025,464)

Net increase (decrease) in cash and cash equivalents

3,625,299,855

(147,999,119)

3,544,951,622

(156,164,285)

Cash and cash equivalents at the beginning of the years

9,929,815,925

9,544,478,903

9,781,650,759

9,404,478,903

10,322,414

533,336,141

10,322,414

533,336,141

13,565,438,194

9,929,815,925

13,336,924,795

9,781,650,759

Interest expenses

6,435,446,873

6,446,482,382

6,435,446,873

6,446,482,382

Income tax

5,973,388,350

3,199,476,595

5,973,388,350

3,199,476,595

20,112,890,468

-

Net cash provided by (used in) financing activities

Effects of exchange rate changes on cash and bank balance Cash and cash equivalents at the end of the year

3.21

Supplementary cash flows information : Net cash paid during the year for

Non-cash transaction Assets in accordance with financial lease

20,112,890,468

-

The accompanying notes are an integral part of these financial statements.

(Signed) Bhisit Kuslasayanon (Bhisit Kuslasayanon) President

(Signed) Amnuay Chanya (Amnuay Chanya) Executive Vice President Finance and Information

45

N otes to the Financial Statements Thai Airways International Public Company Limited and Subsidiaries

for the year ended September 30, 2000 and 1999

1. PRINCIPLES OF CONSOLIDATION The consolidated financial statements consist of the financial statements of Thai Airways International Public Company Limited, the Company’s staff pension fund and the two subsidiaries i.e. Thai-Amadeus Southeast Asia Company Limited and Thai Information Solution Company Limited. Investments in these subsidiaries are stated at equity method. Significant transactions between the Company and its subsidiaries have been eliminated from the consolidated financial statements.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 2.1

Allowance for Doubtful Accounts The allowance for doubtful accounts is set up for trade accounts receivable, excluding those from government agencies and state enterprises, which is over six months overdue at the following rates : PERIOD OF OVERDUE

PERCENTAGE OF ALLOWANCE FOR DOUBTFUL ACCOUNTS

Over 6 months to 1 year Over 1 year to 2 years Over 2 years

50 75 100

2.2

Inventories and Supplies Inventories and supplies are stated at moving average cost except for the following items: - Fuel and oil of aircraft is stated at weighted average cost.

- Inventories in transit are stated at purchasing date cost.

Unused aircraft spare parts over two years or spare parts for none-exist aircraft in the fleet are presented under “Unused aircraft spare parts and spare parts for sales”, and provision for obsolescence is made at the annual rate of 33.33%. For the current aircraft spare parts, provision for obsolescence is made at the annual rate of 10%.

2.3

Investments 2.3.1 Investments in subsidiaries and associated companies are stated at equity method.

2.3.2 Other investments are stated at cost.

2.4

Property, Plant and Equipment 2.4.1 Aircraft and aircraft under capital leases are stated at cost including, where applicable, costs of decorations, acquisition costs and interests on loans for purchasing aircraft, which incurred prior to the aircraft being placed into service, deducted by discount from concessions for acquisitions of aircraft. Depreciation is calculated by the straight-line method over the estimated useful life of 20 years with the salvage value of 10 % of cost.

2.4.2 Aircraft overhaul costs (D-Check) are stated under the “Aircraft” with the overhaul costs deducted by depreciation calculating by the straight-line method over the estimated useful life of 4-7 years.

2.4.3 Revolving aircraft spare parts are stated at acquiring date cost. Depreciation is calculated by the straight-line method over the estimated useful life of 5-20 years.

2.4.4 Other fixed assets are stated at cost of acquiring date or completing construction date. Depreciation is calculated by the straight-line method over the estimated useful life ranging from 5 to 20 years.

2.5

Concessions for Acquisitions of Aircraft and Engines Concessions received under contracts for acquisition of aircraft and engines are presented “Concessions for acquisitions of aircraft and engines” (other assets), together with “Deferred concessions to reduce cost of aircraft” (other liabilities). When aircraft and engines are received, the entire concessions under contractual agreements have been transferred from “Deferred concessions to reduce cost of aircraft” to reduce cost of received aircraft. When assets or services under the concessions are received, the concessions for acquisitions of aircraft and engines will be transferred to assets or expenses as is the case.

46

2.6

Obligations Under Capital Leases Obligations under capital leases are liabilities deriving from the purchase of aircraft under long-term capital leases via the financial institutions. These are stated at the obligation values with the financial institutions and the values will be reduced by the amount of repayment.

These leases are considered as financial leases.

2.7

Airline Revenue Recognition 2.7.1 Passenger and excess baggage revenues: - Revenues from ticket sales and service orders are recognized as income when the transportation is provided.

- Unused tickets and service orders are recognized as revenue if they are unused over two years.

2.7.2 Freight revenues are recognized when the Company provides the services and issues its air waybills. The freight for which the Company has already issued the air waybills and carried by other air carriers will be recognized as revenue when the other air carriers do not bill within one year.

2.7.3 Since the fiscal year 1993, the Company has introduced a number of frequent flyer programme named “The Royal Orchid Plus” to promote its sales by offering special rights to its members, using a future transportation services when accumulated mileages meet its criteria. The value of the accumulated mileages is calculated as the money taking to reduce passenger revenues together with unearned transportation revenues (liabilities). Revenues are recognized when the members use the services.

2.8

Earnings (Losses) per Share Earnings (losses) per share are calculated by dividing net profit (loss) by the weighted average number of ordinary shares which are fully paid-up.

2.9

Expenses in Developing or Modifying Computer System Expenses incurred in developing computer system which increase its capability or efficiency are presented as assets.

Expenses incurred in modifying computer system in order to solve the year 2000 problem are recognized as entire expenses when incurred.

2.10

Foreign Currency Transactions Foreign currency transactions are translated into Baht at the exchange rates which are calculated from the average exchange rate of the Bank of Thailand and commercial banks in the month in which transactions occur.

Assets and liabilities denominated in foreign currency remaining at the year-end are translated into Baht at commercial banks’ average buying and selling rates, as announced by the Bank of Thailand. The gains or losses on exchange rate are recognized as entire income or expenses in the period incurred.

2.11

Staff Provident Fund The Company has established “Employee of Thai Airways International Public Company Limited Registered Provident Fund” since June 26, 1992 in pursuance of the Provident Fund Act B.E. 2530. The Company contributes monthly to the fund, at the rate of 9% of employees’ salaries for the members having not over 20 years of service and 10% for the members having over 20 years of sevice. The contribution is recognized as an expense of the Company.

2.12

Income Tax The Company taxes expense or income consists of current period tax which is calculated in accordance with the Revenue Code and deferred tax asset which is calculated from the temporary differences between the net book value of the assets and its tax base.

47

3. SUPPLEMENTARY INFORMATION 3.1

The Effect of the Change in Accounting Policies and Accounting Estimates In the fiscal year 2000, the Company has changed the accounting policies and accounting estimates for the following 2 items : 3.1.1 Deferred charges In the fiscal year 2000, the Company has changed its accounting policy with regard to deferred charges which are not assets following the Accounting Framework and previously recorded as an asset and amortized within 5 years. Instead the deferred charges are now recognized as entire expenses in the Company statement of income. Also the Company has restated its 1999 financial statements, shown for comparative purpose, as though the Company had consistently followed the new accounting policy. The change in accounting policy has resulted in an increase in the accumulated deficit at the beginning of the fiscal year 2000 by Baht 1,929.91 million. Also the net profits for the year ended September 30, 2000 and 1999 of the consolidated and the Company statement of income decrease by Baht 610.23 million and Baht 202.18 million respectively, and earnings per share for the same periods decrease by Baht 0.31 and Baht 0.10 respectively.

3.1.2 Staff welfare fees In the fiscal year 2000, the Company has changed its accounting policy with regard to the recognition of its staff welfare fees, whereby the staff welfare fees occurring in any fiscal year being recognized as expenses in the following year is now recognized as expenses in the year incurred. The Company has restated its 1999 financial statements, shown for comparative purpose, as though the Company had consistently followed the new accounting policy. The change in accounting policy has resulted in an increase in accumulated deficit at the beginning of the fiscal year 2000 by Baht 1,736.80 million. Also the net profits for the year ended September 30, 2000 and 1999 of the consolidated and the Company statements of income decrease by Baht 110.50 million and Baht 98.47 million respectively, and earnings per share for the same periods decrease by Baht 0.06 and Baht 0.05 respectively.

3.2

Cash and Bank Balance (Unit : Million Baht) CONSOLIDATED

Cash in Thailand Cash in stations abroad Bank in Thailand Bank in stations abroad Total 3.3

2000 12.12 12.57 5,175.51 4,249.97 9,450.17

1999 12.57 12.50 1,335.60 3,539.27 4,899.94

THE COMPANY

2000 12.12 12.57 5,084.23 4,249.97 9,358.89

1999 12.57 12.50 1,320.17 3,539.27 4,884.51

Trade Accounts Receivable Trade accounts receivable are classified in accordance with the period of overdue.

(Unit : Million Baht) CONSOLIDATED

PERIOD OF OVERDUE

Not over 6 months Over 6 months to 1 year Over 1 year to 2 years Over 2 years Less Allowance for doubtful accounts Total

48

2000 11,991.52 117.29 33.75 569.28 12,711.84 (653.16) 12,058.68

1999 10,516.51 40.80 136.19 546.32 11,239.82 (668.86) 10,570.96

THE COMPANY

2000 11,990.80 117.29 33.75 569.28 12,711.12 (653.16) 12,057.96

1999 10,516.51 40.80 136.19 546.32 11,239.82 (668.86) 10,570.96

3.4

Inventories and Supplies (Unit : Million Baht) CONSOLIDATED

Aircraft spare parts Vehicle spare parts and ground supporting equipment Unused aircraft spare parts and spare parts for sale Fuel and oil for aircraft Goods for sales Cabin supplies Supplies and other consumable materials Stationery and office supplies Inventories in transit Obsolete and damaged inventories for disposal Less Provision for obsolete inventories, aircraft spare parts Total

THE COMPANY

2000 2,568.22 157.00 1,534.86 49.40 170.07 115.75 30.77 84.20 98.49 88.51 4,897.27

1999 2,331.75 143.39 1,308.05 41.33 129.59 295.85 33.70 89.50 224.62 19.34 4,617.12

2000 2,568.22 157.00 1,534.86 49.40 170.07 115.75 30.77 84.20 98.49 88.51 4,897.27

1999 2,331.75 143.39 1,308.05 41.33 129.59 295.85 33.70 89.50 224.62 19.34 4,617.12

(1,407.08) 3,490.19

(856.53) 3,760.59

(1,407.08) 3,490.19

(856.53) 3,760.59

The balance of aircraft spare parts as at September 30, 2000 amounted to Baht 2,568.22 million are depreciated at the rate of 10% totalled Baht 256.82 million. For unused aircraft spare parts over 2 years or spare parts for none-exist aircraft in the fleet which are separated for sales within 3 years amounting to Baht 1,534.86 million are depreciated at Baht 1,061.75 million. Provision for obsolete inventories is Baht 88.51 million. Thus, total provision for obsolete inventories amounted to Baht 1,407.08 million.

3.5

Other Current Assets (Unit : Million Baht) CONSOLIDATED

Receivable - IATA Loans to aircraft companies Loans to employees Loans to subsidiary companies Other receivable Accrued income Value added tax Less Provision for doubtful debt Total

2000 691.71 37.43 1,426.65 205.73 562.30 2,923.82 (107.91) 2,815.91

1999 580.53 6,299.12 35.98 1,250.07 197.68 1,065.26 9,428.64 (107.72) 9,320.92

THE COMPANY

2000 691.71 37.43 66.32 1,426.65 109.61 562.30 2,894.02 (107.91) 2,786.11

1999 580.53 6,299.12 35.98 39.42 1,250.07 197.52 1,065.26 9,467.90 (107.72) 9,360.18

Loans to subsidiary companies as at September 30, 2000 amounting to Baht 66.32 million were pre-operating expenses which the Company had paid for Thai Information Solution Company Limited amounting to Baht 37.39 million and for Thai-Amadeus Southeast Asia Company Limited amounting to Baht 28.93 million.

49

3.6

Investments (The Company) 3.6.1 Investments in subsidiary and associated companies are recorded by the equity method.

(Unit : Million Baht) PERCENTAGE OF

INVESTMENT

PROFIT

SHAREHOLDING

AMOUNT

SHARING

Subsidiary Companies Thai Information Solution Company Limited (paid 25% of registered shares) Thai-Amadeus Southeast Asia Company Limited Total Associated Companies Royal Orchid Hotel (Thailand) Public Co., Ltd. (Market value as at September 30, 2000 amounting to 540.00 million Baht and September 30, 1999 amounting to 365.63 million Baht) Donmuang International Airport Hotel Company Limited Bangkok Aviation Fuel Services Public Company Limited Phuket Air Catering Company Limited Total Total investment in subsidiary and associated companies

2000

1999

2000

1999

2000

1999

100

100

99.96

95.51

4.45

7.73

55

100

67.31 167.27

13.43 108.94

60.62 65.07

0.04 7.77

24

24

278.19

274.89

37.05

41.92

40 30.7 30

40 30.7 30

218.38 305.93 18.16 820.66 987.93

189.98 277.42 6.77 749.06 858.00

57.20 59.23 11.39 164.87 229.94

83.10 28.28 6.78 160.08 167.85

3.6.2 Other investments are recorded by the cost method.

(Unit : Million Baht)

Fuel Pipeline Transportation Limited AMADEUS MARKETING, S.A. Aeronautical Radio of Thailand Limited SITA Investment Certificate TRADESIAM Company Limited (paid 25% of registered shares) EQUANT N.V. Other Shares Less Allowance for impairment in value of investment Total other investments Total investments

PERCENTAGE OF

INVESTMENT

PROFIT

SHAREHOLDING

AMOUNT

SHARING

2000 8.4 5.5

1999 8.4 8.0 5.4

3.5

3.5

2000 133.00 36.37 46.58 1.75

1999 133.00 35.58 48.14 1.75

2000 -

1999 51.25 -

10.19 6.77 (133.00) 101.66 1,089.59

1.77 220.24 1,078.24

0.06 0.06 230.00

0.07 51.32 219.17

Investment in EQUANT N.V., a company is registered in The Netherlands and listed in New York Stock Exchange and in Bourse de Paris, as at September 30, 2000 amounted to Baht 10.19 million. It is an investment deriving from the money to be allocated back to the Company

by Societe Internationale de Telecommunications Aeronautiques S.C. or SITA. SITA is the organization that provides telecommunication services to airlines all over the world with its head office in Brussels, Belgium. SITA collects expenses from its members in proportion to the use of its services. In case the revenues exceed the expenses, they will be proportionally appropriated to the Company. From 1990 to 1998, SITA has not appropriated the excess revenues which are equivalent to USD 260,000 in cash to the Company. Instead the money was invested in EQUANT N.V. The Company’s shared proportion in the investment is equal to 1,119,662 depository certificates with the value equal to the share value of the EQUANT N.V. that SITA puts on the market.

50

3.7

Property, Plant and Equipment - Net (Unit : Million Baht) CONSOLIDATED

Aircraft Advance payments for aircraft on order 40 Aircraft 21 Aircraft under capital leases 61 Total Aircraft Revolving aircraft spare parts Other fixed assets Land and buildings Buildings under leasehold Other plants and equipments Building improvements Total other fixed assets Deferred maintenance and overhaul of aircraft Total Less Accumulated depreciation Net fixed assets

THE COMPANY

2000

1999

2000

1999

4,576.87 95,136.48 56,230.69 155,944.04 21,844.68

8,124.26 89,126.81 33,591.23 130,842.30 19,327.45

4,576.87 95,136.48 56,230.69 155,944.04 21,844.68

8,124.26 89,126.81 33,591.23 130,842.30 19,327.45

3,377.13 3,945.68 16,521.95 2,425.99 26,270.75 1,928.48 205,987.95 87,834.57 118,153.38

3,377.10 3,472.43 16,246.67 2,409.76 25,505.96 1,159.99 176,835.70 81,386.21 95,449.49

3,377.13 3,945.68 16,511.06 2,425.99 26,259.86 1,928.48 205,977.06 87,834.14 118,142.92

3,377.10 3,472.43 16,246.67 2,409.76 25,505.96 1,159.99 176,835.70 81,386.21 95,449.49

Thirty-eight aircraft are brought forward from the fiscal year 1999. In fiscal year 2000, the aircraft is increased by four from receiving one aircraft Airbus 330-300 at a cost of Baht 4,163.30 million and from using the right in purchasing the other three aircraft, two Boeing 737-400 and one Airbus 310-200. In this fiscal year, two aircraft with a book value of Baht 135.02 million are sold at a price of Baht 702.00 million. After deducting overhaul expenses of Baht 186.17 million, the Company has gains on sales of aircraft amounting to Baht 380.81 million.

Nineteen aircraft under capital leases are brought forward from the fiscal year 1999. In the fiscal year 2000, the Company has received five aircraft consisting of one Boeing 747-400 and four Boeing 777-300. Three aircraft under capital leases have been transferred to “Aircraft Account” as the proprietary right was given to the Company.

Revolving aircraft spare parts consist of aircraft engines of GE (GENERAL ELECTRIC), PW (PRATT AND WHITNEY), ROLLS-ROYCE, TEXTRON LYCOMING, and other revolving aircraft spare parts.

For other plants and equipments, in the fiscal year 2000 the Company has received the Second Test Cell with the total value of Baht 607.41 million.

3.8

Loan for Investment in Aircraft Spare Parts The Company has signed a technical contract with SR TECHNICS for maintenance of MD-11 TECHNICAL SUPPORT AND MAINTENANCE MD-11 at USD 2.80 million. The Company receives the interest on this loan at the rate of 6.5% per annum. The balance as at September 30, 2000 amounted to USD 0.87 million or equivalent to approximately Baht 36.69 million.

51

3.9

Long-term Loans (Consolidated and the Company) (Unit : Million Baht)

LOAN CURRENCY

JPY USD THB Total Long-term loans Less Amount due within one year Amount Due Long-term

LOAN CURRENCY

2000 10,000,000,000 1,254,630,960 3,223,458,900

1999 30,000,000,000 1,327,299,831 4,259,621,965

2000 3,945.94 53,153.07 3,223.46 60,322.47 11,968.55 48,353.92

1999 11,616.99 54,597.02 4,259.62 70,473.63 13,826.67 56,646.96

The Company has engaged in a contractual long-term loans to purchase aircraft. In the fiscal year 2000, the balance of 25 aircraft amounted to Baht 60,322.47 million comprises Baht 11,148.13 million from foreign loans with the interest rate of 6.02% - 6.91% per annum and Baht 49,174.34 million from domestic loans with the interest rate of 5.00% - 9.50% per annum.

3.10

Obligations Under Capital Leases (Consolidated and the Company) (Unit : Million Baht)

LOAN CURRENCY

JPY USD FRF DEM Present value of obligations under capital leases Less Amount due within one year Amount Due Long-term

LOAN CURRENCY

2000 28,223,280,792 863,314,900 114,292,655 8,410,694

1999 34,236,264,146 426,732,178 142,594,476 40,223,516

2000 11,136.74 36,574.77 653.83 161.19 48,526.53 5,955.57 42,570.96

1999 13,257.41 17,553.16 955.46 903.37 32,669.40 5,666.29 27,003.11

The Company has contractual agreement with option to buy with 16 foreign financial institutions. The accounting policy for recording aircraft under capital leases is described in Note 2.6. In the fiscal year 2000, there are 21 aircraft left constituting the Company obligations under capital leases for the payment due in 2000 - 2011 totalled Baht 60,376.71 million. After deducting the due interest of Baht 11,850.19 million, the present value of obligations under capital leases is Baht 48,526.52 million.

3.11

Promissory Notes The Company has issued the promissory notes to Government Saving Bank and THAI Employees’ Saving & Credit Coops Ltd. amounting to Baht 6,526.00 million and Baht 4,000.00 million respectively, with floating interest rate computed by using six-month fixed deposit interest rate of Government Saving Bank plus 2.9% - 3.0% per annum. Such issuance are to compensate the payment of aircraft Boeing 747-400 No. 14 and aircraft Airbus 330-300 No.12. As at September 30, 2000 these promissory notes are transferred to debts due within one year amounting to Baht 1,076.00 million, leaving the balance of Baht 9,450.00 million as long-term liabilities.

3.12

Concessions to Reduce Cost of Aircraft The Company has the right to receive concessions under contracts for acquisition of aircraft and engines. The balance as at September 30, 2000 amounting to USD 119.99 million or approximately Baht 5,083.53 million derives from the balance brought forward from the year 1999 amounting to USD 192.03 million or approximately Baht 7,898.86 million, a transfer of USD 72.04 million in this fiscal year to reduce cost of aircraft as described in Note No. 2.5.

3.13

Legal Reserve At the end of the year 1999, the Company's legal reserve balance amounted to Baht 1,032.78 million. In the fiscal year 2000, the net profit is lower than the brought forward accumulated deficit. Therefore, the Company did not have to provide legal reserve, following Section 116 of the Public Companies Act. 3.14

Dividends Accrued dividends totalling Baht 27.06 million as at September 30, 2000 are dividends for which certain shareholders have not yet cashed their checks and also dividends of certain shareholders whom the registrar cannot contact.

52

3.15

Other Activities The results of other activities of the Company are as follows: (Unit : Million Baht) REVENUES

Catering Services Domestic catering & restaurant Limousine services Ground handling and services to air carriers Sales on board Agent distribution services Total

2000 3,407.63 1,024.88 305.12 10,329.50 101.65 21.06 15,189.84

1999 3,204.61 988.71 269.98 9,050.27 113.78 253.96 13,881.31

EXPENSES

2000 2,469.36 859.83 345.48 7,419.76 7.31 3.34 11,105.08

PROFIT (LOSS)

1999 2,335.77 779.21 315.00 6,903.54 54.10 30.72 10,418.34

2000 938.27 165.05 (40.36) 2,909.74 94.34 17.72 4,084.76

1999 868.84 209.50 (45.02) 2,146.73 59.68 223.24 3,462.97

Profits from other activities do not include any distribution cost from general and administration expenses such as depreciation, interest and loss on exchange rate, etc.

3.16

Other Incomes (Unit : Million Baht) CONSOLIDATED

Revenue from insurance compensation Gains on sales of assets Revenue from investment Other incomes Total 3.17

2000 25.92 766.11 0.06 303.22 1,095.31

1999 414.06 2,459.73 51.32 866.64 3,791.75

THE COMPANY

2000 25.92 766.11 0.06 303.22 1,095.31

1999 414.06 2,459.73 51.32 866.64 3,791.75

Other Expenses (Unit : Million Baht) CONSOLIDATED

Bad and doubtful debts Credit card fees Compensation to customers for damages Expenses for grounded aircraft Allowance for impairment in value of investment Other expenses Total

2000 (10.48) 194.84 83.82 0.94 133.00 1,059.70 1,461.82

1999 152.86 168.67 78.30 1.16 492.97 893.96

THE COMPANY

2000 (10.48) 194.84 83.82 0.94 133.00 1,059.66 1,461.78

1999 152.86 168.67 78.30 1.16 492.97 893.96

3.18

Lease Aircraft The Company signed the operating leases with foreign companies totalling 18 aircraft with the lease term of 10-11 years.

The Company has an obligation to pay the lease over the lease term amounting to USD 1,581.73 million or approximately Baht 67,010.91 million.

3.19

Additional Taxes Paid to the Revenue Department In the fiscal year 2000, the Revenue Department has concluded an audit on the Company taxes during the period October 1, 1990 to December 31, 1999. The conclusion was that the Company had to pay additional taxes to the Revenue Department amounting to Baht 2,038.99 million, consisting of flight per diem tax amounting to Baht 1,931.13 million, value added tax amounting to Baht 106.39 million and income tax amounting to Baht 1.47 million. The Company at the same time could refund VAT input tax from lease of aircraft amounting to Baht 53.19 million.

Therefore, the amount of additional taxes to be paid was Baht 1,985.80 million. The Company paid the taxes in the fiscal year 2000 amounting to Baht 662.51 million and in the fiscal year 2001 (November 7, 2000) amounting to Baht 1,323.29 million. The Company recognized the taxes paid amounted to Baht 280.77 million as expenses in the fiscal year 1999 and adjusted the taxes paid amounted to Baht 1,636.77 million which incurred before the fiscal year 1999 with its retained earnings at the beginning of the year 1999. The Company also recognizes approximate flight per diem tax estimated at Baht 194.28 million as an expense in this fiscal year.

53

3.20

RESULTS OF OPERATIONS The results of the Company’s operations for the year 2000 as compared to 1999 are summarized as follows: (Unit : Million Baht) THE COMPANY

2000 1999 INCREASE(DECREASE) Operating Revenues Traffic 106,269.80 93,771.64 12,498.16 Others 15,189.85 13,881.31 1,308.54 Total 121,459.65 107,652.95 13,806.70 Operating Expenses Traffic 95,577.56 80,442.04 15,135.52 Others 11,105.08 10,418.34 686.74 Total 106,682.64 90,860.38 15,822.26 Operating Profit Traffic 10,692.24 13,329.60 (2,637.36) Others 4,084.77 3,462.97 621.80 Total 14,777.01 16,792.57 (2,015.56) Other Revenues Interest income 375.16 539.99 (164.83) Share of net profit(loss) from subsidiary companies 65.07 7.78 57.29 Share of net profit from associated companies 164.87 160.08 4.79 Other income 1,095.32 3,791.75 (2,696.43) Total 1,700.42 4,499.60 (2,799.18) Other Expenses Interest expenses 6,837.67 6,392.80 444.87 Losses on exchange rate 3,300.81 8,053.05 (4,752.24) Pension fund interest 56.91 93.32 (36.41) Other expenses 1,461.78 893.96 567.82 Total 11,657.17 15,433.13 (3,775.96) Profit (losses) before income tax 4,820.26 5,859.04 (1,038.78) Less Income tax 103.43 1,151.71 (1,048.28) Net profit (losses) for the year 4,716.83 4,707.33 9.50 The results of the Company’s operations for the year 1999 were adjusted with the effect of the change in accounting policy.

3.21

Cash and Cash Equivalents Cash and cash equivalents in statement of cash flows consist of : (Unit : Million Baht) CONSOLIDATED

Cash and bank balances Short-term investments Total

54

2000 9,450.17 4,115.27 13,565.44

1999 4,899.94 5,029.88 9,929.82

THE COMPANY

2000 9,358.89 3,978.04 13,336.93

1999 4,884.51 4,897.14 9,781.65

3.22

Staff Pension Fund The Company has established its staff pension fund by monthly contributing 10% of its employees’ salaries to the fund. The Company presents assets, liabilities and fund balance in the Company’s balance sheet. Interest and expenses arising from the fund operation are recognized as income and expenses of the Company. The details are as follows : (Unit : Million Baht) 2000 1999 Cash and bank balances 83.81 56.09 Short-term investments 3,031.76 2,201.66 Fixed assets 0.07 0.05 Other current assets 13.96 14.55 3,129.60 2,272.35 Other current liabilities 14.26 18.16 Pension fund 3,171.02 2,437.60 3,185.28 2,455.76 As at September 30, 2000 the fund balance is Baht 3,171.02 million which is the same amount of the Company’s obligation to pay to its staff.

3.23

Calculation of Taxable Gains or Losses on Foreign Currency Exchange The Company calculated gains or losses on foreign currency exchange rate to pay company income tax for the period ended in or after July 2, 1997 according to the No. 2(1) of the Revenue Department Order No. 72/1997 dated July 24, 1997.

3.24

Reclassification of Accounts The Company reclassified some items in its cash flow for the periods ended September 30, 1999 in order to compare with the those of the periods ended September 30, 2000.

3.25

Contingent Liabilities 3.25.1 The Company has contingent liabilities resulting from the following commitments: (Unit : Million Baht) THE COMPANY

Letters of guarantee issued by banks The company as defendant in Labour dispute cases Damage claims cases Cases relating to aircraft accident which are under the insurance company’s liabilities at Nepal in 1992 at Surat Thani in 1998 Total

2000 7.93

1999 4.62

8.56 443.93

8.59 437.20

26.13 114.16 600.71

164.26 614.67

3.25.2 THAI’s plane crashed in Surat Thani THAI’s plane crashed in Surat Thani province on December 11, 1998. The damage from the aforesaid case has so far not been able to estimate. Before the end of September 30, 2000 the Company has advanced Baht 386.72 million and received the compensation amounting to Baht 413.39 million from the insurance company. The majority of these expenses is under the insurance company’s liabilities.

55

D etails of Shareholders and Board of Directors

Thai Airways International Public Company Limited, aviation transportation service and associated activities, head office being 89 Vibhavadi Rangsit Road, Ladyao, Chatuchak, Bangkok 10900, Thailand.

Authorised Share Capital : 1,600 million ordinary shares at 10 Baht per share totalling 16,000 million Baht Shares Issued and Paid Up Share Capital : 1,400 million ordinary shares fully paid at 14,000 million Baht Ordinary Shareholders Portfolio of Thai Airways International Public Company Limited at September 30, 2000 Amount of Shares Held in One Portfolio

Number of People Holding Each Portfolio

%

Total Shares

%

99,041 797 34 4

99.17 0.80 0.03 0.00

23,251,224 1,842,182 1,012,900 1,373,893,694

1.70 0.13 0.07 98.13

99,876

100.00

1,400,000,000

100.00

98,358

98.48

1,346,413,352

96.17

1-1,000 1,001-10,000 10,001-1,000,000 1,000,000-plus Thai citizens holding shares Others

1,518

1.52

53,586,648

3.83

99,876

100.00

1,400,000,000

100.00

Board of Directors’ Shareholders Portfolio and Remuneration for Fiscal Year 2000 Board of Directors Mr. Mahidol Chantrangkurn Chairman Mr. Suphachai Phisitvanich Vice Chairman ACM Sanan Tourtip Vice Chairman ACM Tananit Niamtan Former Vice Chairman Mr. Nibhat Bhukkanasut Former Director Pol.Gen. Pracha Promnog Former Director Mr. Sirin Nimmanahaeminda Former Director Mr. Sawatdiparp Kantatham Former Director ACM Anek Phuasuwan Former Director ACM Nipon Sakornyen Director Mr. Bundit Siripant Director Mr. wissanu Krea-ngam Director Mr. Sansern Wongcha-um Director Mr. Suchart Traiprasit Director Mr. Sumet Tantivejkul Director ACM Terdsak Sujjaruk Director Gen. Mongkon Ampornpisit Director Mr. Poonsup Piya-anant Director Mr. Wisudhi Srisuphan Director Pol.Gen. Narongvich Thaitong Director Mr. Thamnoon Wanglee Director and Secretary

56

Number of Shares 100 100 100 100 100 100 100 100 100 100 1,000

Annual Welfare Fee (Baht) 150,000.00 135,000.00 103,064.52 31,935.48 28,387.10 87,333.33 28,387.10 21,290.32 21,290.32 90,000.00 120,000.00 120,000.00 120,000.00 120,000.00 90,000.00 91,612.90 68,709.68 91,612.90 68,709.68 16,209.68 120,000.00

List of Affiliated and Subsidiary Companies Name and Address

Percentage of Shareholding

1. Royal Orchid Hotel (Thailand) Pub. Co., Ltd.

Type of Business

24.0%

Hotel

40.0%

Hotel

30.7%

Fuel Storages and

2 Captain Bush Lane, Siphya Road, Bangkok 10500, Thailand 2. Donmuang International Airport Hotel Co., Ltd. 333 Chert Wudthakas Road, Don Muang, Bangkok 10210, Thailand 3. Bangkok Aviation Fuel Services Pub. Co., Ltd. 171/2 Vibhavadi Rangsit Road,

filling for aircraft at the airport

Don Muang, Bangkok 10210, Thailand 4. Phuket Air Catering Co., Ltd.

30.0%

Air catering

100.0%

Information technology

41/33 2 nd Floor, Montri Road, Phuket 83000, Thailand 5. Thai Information Solutions Co., Ltd. 89 Vibhavadi Rangsit Road, Ladyao, Chatuchak,

services

Bangkok 10900, Thailand 6. Thai-Amadeus Southeast Asia Co., Ltd. 89 Vibhavadi Rangsit Road, Ladyao, Chatuchak, Bangkok 10900, Thailand

55.0%

Distributor of computer services, flight reservation and other travel-related services

57

B oard of Directors As at September 30, 2000

Thai Airways International Public Company Limited

Mr. Mahidol Chantrangkurn

Mr. Suphachai Phisitvanich

Chairman

Vice Chairman

ACM Sanan Tourtip Vice Chairman

Permanent Secretary Ministry of

Permanent Secretary Ministry

Commander-in-Chief

Transport and Communications

of Finance

Royal Thai Air Force

Mr. Suchart Traiprasit

ACM Terdsak Sujjaruk

ACM Nipon Sakornyen

Mr. Bundit Siripant

Director

Director

Director

Director

Attorney-General

Chief of the Air Staff

Managing Director

Manager

Office of the Attorney-General

Royal Thai Air Force

Airports Authority of Thailand

Seni Pramoj Advocates & Solicitors

58

Mr. Poonsup Piya-anant

Gen. Mongkon Ampornpisit

Mr. Wissanu Krea-ngam

Director

Director

Director

Director

Director The Bureau

Supreme Commander

Secretary-General to the Cabinet

Comptroller-General

of the Budget

Supreme Command Headquarters

The Secretariat of the Cabinet

The Comptroller General Dept.

Mr. Sansern Wongcha-um

Pol.Gen. Narongvich Thaitong

Mr. Sumet Tantivejkul

Mr. Thamnoon Wanglee

Director

Director

Director and Secretary

Secretary-General

Director

President

President

National Economic and Social

Deputy Commissioner-General (Special Crime Suppression) Royal Thai Police

Pattana Thai Foundation

Thai Airways International

Development Board

Mr. Wisudhi Srisuphan

Public Company Limited

59

M anagement Team As at September 30, 2000

Thai Airways International Public Company Limited

Mr. Thamnoon Wanglee

Mr. Suthep Suebsantiwongse

Mr. Prasert Khlongwathanakith

President

Vice President

Vice President

Revenue Planning and

Subsidiaries & Investments Department

LT.JG. Chusak Bhachaiyud

Management Department

Executive Vice President Technical Department Mr. Bhisit Kuslasayanon

Mrs. Sangngun Pornpaiboonstid Mr. Chanchai Singtoroj

Vice President

Vice President

Corporate Planning Department

Sales & Distribution Department

Executive Vice President Customer Services Department

Mr. Voravudhi Bunyaketu Mr. Veravat Chotiros

Vice President

Vice President

Government Relations Department

FLT.LT. Sa-ad Sobsatrasorn

Marketing Development &

Executive Vice President

Support Department

Operations Department

Mrs. Chamarie Chitwattanagorn Vice President

Mr. Charnchai Surassanant Mr. Amnuay Chanya

Vice President

Executive Vice President

Ground Customer Services Department

Finance & Information Department

Human Resources Department Mr. Apichart Danaivan Vice President

Mr. Wichit Yuktadatta Mr. Prajak Jamrusmechoti

Vice President

Executive Vice President

Inflight Customer Services Department

Commercial Department

General Administration Department Mr. Tummasak Chutiwong Vice President

Mr. Kobchai Srivilas

Crisis Management &

Mr. Tasnai Sudasna Na Ayudhaya

Vice President

Information Center Department

Executive Vice President

Line & Light Maintenance Department

Human Resources & General Administration Department Mr. Sittipong Thanitayawong

Mrs. Sumalee Nakorntap WG.CDR. Supachai Limpisvasti

Vice President

Vice President

Special Project Department

Heavy Maintenance Department

Senior vice President

Mr. Prasert Lipiwathana

Corporate Planning &

SQN.LDR. Chamlong Poompuang

Vice President

Government Relations Department

Vice President

Special Project Department

Flight Operations Department

Overseeing Star Alliance

Senior Vice President

SQN.LDR. Pradith Vudhivate

M.R. Supadis Diskul

Standards &

Vice President

Vice President

Safety Assurance Department

Aviation Personnel Development

Special Project Department

FLG.OFF. Chinawut Naressaenee

Department Mr. Sutat Rattakunjara

FLT.LT. Sukasem Nuangwang

Vice President

Mr. Kaweepan Raungpaka

Vice President

Product Development & Management

Vice President

Special Project Department

Department

Corporate Finance Department Mr. Suthin Sanguansat Mr. Kamol Thammanichanond

Vice President

Vice President

Special Project Department

Comptroller Department

60

T hai On - line Offices

ATHENS,GREECE EL.VENIZELOU 32 166 75 GLYFADA 10671 ATHENS, GREECE

TKT/RSVN : (30-1) 9692-020 FAX : (30-1) 9602-686 e-mail : thai-air@otenet.gr

AUCKLAND, NEW ZEALAND 22 FANSHA WE STREET, KENSINGTON SWAN BUILDING, LEVEL 1, AUCKLAND, NEW ZEALAND

TKT/RSVN : (64-9) 377-3886 FAX : (64-9) 379-8597 e-mail : aklaa@thaiair.co.nz

KATHMANDU, NEPAL ANNA PURNA ARCADE TKT DURBAR MARG, KATHMANDU, NEPAL RSVN FAX

TKT/RSVN : (673-2) 242-991-3 FAX : (673-2) 242-871 e-mail : thaiair@brunet.bn

KUALA LUMPUR, MALAYSIA 30th FLOOR, WISMA GOLDHILL, JALAN RAJA CHULAN 50200 KUALA LUMPUR, MALAYSIA

BANDAR SERI BEGAWAN, BRUNEI 4th FLOOR, KOMPLEK JALAN SULTAN 51-55 JALAN SULTAN, BANDAR SERI BEGAWAN BRUNEI DARUSSALAM BS 8811

BEIJING, PEOPLE’S REPUBLIC OF CHINA BEIJING LUFTHANSA CENTER S 102 B TKT NO.50 LIANG MA QIAO ROAD RSVN CHAO YANG DISTRICT, BEIJING 100016 FAX PEOPLE’S REPUBLIC OF CHINA e-mail BRISBANE, AUSTRALIA LEVEL4, 145 EAGLE STREET BRISBANE, QUEENSLAND 4000 AUSTRALIA CALCUTTA, INDIA 8th FLOOR, CRESCENT TOWER 229 A.J.C. BOSE ROAD CALCUTTA 700020, INDIA COLOMBO, SRI LANKA HOTEL CEYLON INTERNATIONAL 48 JANADHIPATHI MAWATHA COLOMBO 1, SRI LANKA COPENHAGEN, DENMARK RAADHUSPLADSEN 16 DK-1550, COPENHAGEN V DENMARK

: : : :

(86-10) 6468-5752 (86-10) 6460-8899 (86-10) 6460-6990 bjstg@public.east.cn.net

TKT/RSVN : (07) 3215-4700 FAX : (07) 3215-4737 e-mail : petercullen@thaiairways.com.au

TKT/RSVN : (45-33) 750-120 FAX : (45-33) 750-180 e-mail : ss@thai-airways.dk

MANILA, PHILIPPINES COUNTRY SPACE 1 BUILDING SEN GIL PUYAT AVENUE MAKATI CITY, PHILIPPINES

TKT/RSVN : (62-361) 288-141 FAX : (62-361) 288-063 e-mail : thaidps@indosat.net.jd

DHAKA, BANGLADESH BSL COMPLEX, MINTO ROAD DHAKA 1000, BANGLADESH

TKT/RSVN : (880-2) 831-4711-18 FAX : (880-2) 832-2353

FRANKFURT, GERMANY BOERSENPLATZ 13-15 60313 FRANKFURT GERMANY

FUKUOKA, JAPAN HINODE BUILDING 1-15-1 TENJIN, CHUO-KU FUKUOKA SHI, 810-0001 JAPAN

TKT/RSVN : (971-4) 268-1701 FAX : (971-4) 266-5498

TKT RSVN FAX e-mail

: : : :

(49-69) 9287-4446 (49-69) 9287-4444 (49-69) 9287-4222 fraaa@thai-airways.de

TKT/RSVN : (092) 734-6409 FAX : (092) 734-9480 e-mail : waravan@thaiair.co.jp

GUANGZHOU, PEOPLE’S REPUBLIC OF CHINA THE GARDEN HOTEL TKT/RSVN : (86-20) 8382-4333 368 HUANSHI EAST ROAD, FAX : (86-20) 8382-3986 GUANGZHOU 510064 e-mail : thaican@public.guangzhou.gd.cn PEOPLE’S REPUBLIC OF CHINA HANOI, VIETNAM 44 B L Y THUONG KIET STREET HANOI, SOCIAL REPUBLIC OF VIETNAM

TKT/RSVN : (84-4) 826-7921-22 FAX : (84-4) 826-7394 e-mail : tghanoi@hn.vnn.vn

HO CHI MINH CITY, VIETNAM 65 NGUYEN DU STREET, DISTRICT 1 HO CHI MINH CITY, SOCIAL REPUBLIC OF VIETNAM

TKT/RSVN : (84-8) 829-2809-10 FAX : (84-8) 822-3465 e-mail : thaiairways.aa.@hcm.vnn.vn

HONG KONG MANAGEMENT&ACCOUNTS : 15-B FLOOR, SALES, TKTG & RSVN :24-A FLOOR UNITED CENTRE, QUEENSWAYS, HONG KONG

JAKARTA, INDONESIA GROUND FLOOR, BDN BUILDING JL. M.H. THAMRIN NO.5 JAKARTA 10340, INDONESIA

KAOHSIUNG, TAIWAN 9TH FLOOR, NO.282, CHUNG-HUA 4th ROAD KAOHSIUNG, TAIWAN, R.O.C.

LOS ANGELES, U.S.A. 222 NORTH SEPULVEDA BLVD. EL SEGUNDO, CA 90245, U.S.A.

MADRID, SPAIN PRINCIPE DE VERGARA 185 28002 MADRID, SPAIN

DENPASAR, INDONESIA THE GRAND BALI BEACH HOTEL J 1 HANG TUAH, SANUR BALI, INDONESIA

DUBAI, U.A.E. NO.1 BU HALEEBA PLAZA MURAQQABAT ROAD DEIRA, P.O. BOX 13142, DUBAI, U.A.E.

LONDON, UNITED KINGDOM 41 ALBERMARLE STREET LONDON, W1X 4LE UNITED KINGDOM

TKT/RSVN : (94-1) 331-166 FAX : (94-1) 438-895

TKT/RSVN : (011) 623-9988 FAX : (011) 623-9149 e-mail : delaltg@del6vsnl.net.in

TKT FAX

: (852) 2876-6899 : (852) 2735-8551

RSVN FAX e-mail

: (852) 2876-6888 : (852) 2865-6037 : hkgaa@thaiairways.com.hk

TKT RSVN FAX e-mail

: : : :

(62-21) 230-2551 (62-21) 230-2552 (62-21) 330-792 jktsdtg@attglobal.net

TKT/RSVN : (07) 215-5871 FAX : (07) 251-4081 e-mail : thaikhh@ms23,hinet.net

TKT/RSVN : (92-21) 566-0156/58/59 FAX : (92-21) 568-1513 e-mail : thai@fascom.com

: (977-1) 221-247 : (977-1) 223-565 : (977-1) 225-084

TKT/RSVN : (60-3) 201-1913 RSVN : (60-3) 201-2900 FAX : (60-3) 202-5805

STOCKHOLM, SWEDEN KUNGSGATAN 66, S-111 81 STOCKHOLM, SWEDEN

MELBOURNE, AUSTRALIA 250 COLLINS STREET MELBOURNE, VICTORIA 3000, AUSTRALIA MUNICH, GERMANY MODULE B, ROOM B4355A 85356 MUNICH AIRPORT, GERMANY

NAGOYA, JAPAN SOUTH HOUSE 9F 6-29 NISHIKI 3-CHOME NAKA-KU, NAGOYA 460-0003, JAPAN OSAKA, JAPAN SUMITOMO SEIMEI YODOYABASHI BUILDING 4-1-21 KITAHAMA CHOU-KU, OSAKA 541-0041, JAPAN

PARIS, FRANCE 23 AVENUE DES CHAMPS ELYSEES 75008 PARIS, FRANCE

PENANG, MALAYSIA WISMA CENTRAL 41 JALAN MACALISTER 10400 PENANG, MALAYSIA

PERTH, AUSTRALIA LEVEL 30, QV1 BUILDING 250 ST GEORGE’S TERRACE PERTH, WA 6000, AUSTRALIA

TKT FAX e-mail

: (44-20) 7491-7953 : (44-20) 7409-1463 : lonaatg@aol.com

TAIPEI, TAIWAN NO.96, CHIEN KUO NORTH ROAD, SEC.1 TAIPEI, TAIWAN

TKT/RSVN : (81-3) 3503-3311 FAX : (81-3) 3503-3323 e-mail : wallop@thaiair.co.jp

RSVN FAX

(AREA CODE) TKT/RSVN : FAX : e-mail :

TKT RSVN FAX e-mail

: : : :

(34-91) 782-0523-24 (34-91) 782-0521-22 (34-91) 564-5620 reservations@thaiairways.es

YANGON, UNION OF MYANMAR 1101 SAKURA TOWER 339 BOGYOKE AUNG SAN STREET KYAUKTADA 11182, YANGON, MYANMAR

TKT RSVN FAX

TKT FAX RSVN FAX e-mail

: : : : :

(63-2) 812-4812 (63-2) 893-5891 (63-2) 812-4744 (63-2) 817-4044 admin@thaimnl.com.ph

TKT/RSVN : (03) 8662-2266 FAX : (03) 9650-7003 e-mail : marieb@thaiairways.com.au

SW : (089) 975-94672 TKT/RSVN : (089) 975-94670-71 FAX : (089) 975-94676

TKT/RSVN : (88-52) 963-8585 FAX : (88-52) 963-8584 e-mail : charoenchai@thaiair.co.jp

TKT FAX RSVN FAX e-mail

: : : : :

(06) 6202-5470 (06) 6202-5646 (06) 6202-5161 (06) 6202-5453 bhudhisarn@thaiair.co.jp

TKT FAX RSVN FAX e-mail

: : : : :

(33-1) 4420-7070 (33-1) 4420-7049 (33-1) 4420-7080 (33-1) 4420-7037 tongnoi.thongchua@thaiairways.fr

TKT RSVN FAX e-mail

: : : :

(007-604) 226-7000 (007-604) 226-6000 (007-604) 226-9000 thaipen@po.jaring.my

TKT/RSVN : (61-8) 9322-5088 FAX : (61-8) 9322-5039

(855-23) 722-475 (855-23) 722-472 (855-23) 427-211 thaiair@bigpond.co.kh

: : : :

(06) 4781-3329 (06) 4781-3304 (06) 474-6449 manit@thaiair.it

TKT FAX RSVN FAX e-mail

: : : : :

(02) 3707-0033 (02) 3707-0055 (02) 3707-0011 (02) 755-5251 thaisel@chollian.net

SHANGHAI, PEOPLE’S REPUBLIC OF CHINA HOTEL EQUATORIAL TKT 65 YANAN ROAD, SHANGHAI 200040 FAX PEOPLE’S REPUBLIC OF CHINA RSVN FAX

: : : :

(86-21) 6279-7175 (86-21) 6279-7179 (86-21) 6248-7766 (86-21) 6248-8144

TKT RSVN FAX e-mail

: : : :

(65) 224-2024 (65) 224-9977 (65) 223-9005 thaiair@pacific.net.sg

ZURICH, SWITZERLAND BAHNHOF STRASSE 67 8001 ZURICH, SWITZERLAND

(61-2) 9844-0929 (61-2) 9844-0936 (61-2) 9844-0999 (61-2) 9251-1106

: (886-2) 2509-6899 ext.711 : (886-2) 2509-2931 : (886-2) 2509-6800 : (886-2) 2508-4910 : tpesotg@ms29.hinet.net

: (1-310) 640-0097 ext. 344 : (1-800) 426-5204 : (1-310) 322-8728

TKT

: : : :

SINGAPORE 100 CECIL STREET # 03-00 THE GLOBE SINGAPORE 069532

TOKYO, JAPAN 1-5-1, YURAKUCHO, CHIYODA-KU TOKYO 100-0006, JAPAN

TKT FAX RSVN FAX e-mail

: : : :

VIENTIANE, LAOS M&N BUILDING, ROOM NO. 70/101-103 LUANGPRABANG ROAD, KHOUNTA THONG, VIENTIANE, LAO PEOPLE’S DEMOCRATIC REPUBLIC

PHNOM PENH, CAMBODIA 19 STREET 106, SANGKAT WAT PHNOM TKT KHAN DAUNPENH, PHNOM PENH RSVN KINGDOM OF CAMBODIA FAX e-mail ROME, ITALY 50 VIA BARBERINI TKT 00187 ROME, ITALY RSVN FAX e-mail SEOUL, KOREA 16th FLOOR, ORIENTAL CHEMICAL BUILDING 50 SOKONG-DONG, CHUNG-KU SEOUL, 100-718 KOREA

TKT/RSVN : (08) 598-83600 FAX : (08) 598-83690 e-mail : management@thaiairways.se

SYDNEY, AUSTRALIA 75-77 PITT STREET, SYDNEY TKT NEW SOUTH WALES 2000, AUSTRALIA FAX RSVN FAX

KUNMING, PEOPLE’S REPUBLIC OF CHINA KING WORLD HOTEL TKT/RSVN : (86-871) 313-3315 98 BEIJING ROAD, KUNMING 650011 RSVN : (86-871) 313-3139 PEOPLE’S REPUBLIC OF CHINA FAX : (86-871) 316-7351

TEL : (91-33) 287-0276 TKT/RSVN : (91-33) 280-1630-35 FAX : (91-33) 280-1640

DANANG, SOCIAL REPUBLIC OF VIETNAM DANANG INTERNATIONAL AIRPORT TEL : (84-511) 656-060-061 DANANG CITY, TKT/ RSVN : (84-511) 656-060-061 SOCIAL REPUBLIC OF VIETNAM FAX : (84-511) 656-062 DELHI, INDIA THE AMERICAN PLAZA, HOTEL PARKROYAL NEHRU PLACE, NEW DELHI, INDIA

KARACHI, PAKISTAN HOTEL METROPOLE, CLUB ROAD KARACHI, PAKISTAN

: (007-856-21) 222-527-9 216-143 thai@laonet.net

: (95-1) 255-116 : (95-1) 255-491-9 : (95-1) 255-490

TKT/RSVN : (41-1) 215-6500 FAX : (41-1) 212-3408 e-mail : administration@thaiair.ch

BANGKOK, THAILAND HEAD OFFICE 89 VIBHAVADI RANGSIT ROAD BANGKOK 10900

TEL FAX

: 545-1681-6,545-3685-9 : 545-3832

SILOM OFFICE 485 SILOM ROAD BANGKOK 10500

TEL FAX

: 234-3100,232-8000 : 233-1465,237-4114

TKT FAX RSVN FAX

: : : :

TEL FAX

: 215-2020-4 : 215-2021

TEL FAX

: 223-9746-48 : 223-9750

TEL FAX RSVN FAX

: : : :

TEL FAX

: (053) 740-309 : (053) 713-663

PHITSANULOK, THAILAND 209/26-28 BOROMTRILOKNART ROAD TEL PHITSANULOK 65000, THAILAND FAX

: (055) 258-020 : (055) 251-671

HAT YAI, THAILAND 190/6 NIPAT UTHIT ROAD, TKT HAT YAI, SONGKHLA 90110, THAILAND RSVN FAX

: (074) 230-445-6 : (074) 233-433 : (074) 232-392

LARN LUANG OFFICE 6 LARN LUANG ROAD BANGKOK 10110

ASIA HOTEL OFFICE 296 PHAYATHAI ROAD BANGKOK 10400 YAOWARAJ OFFICE ROOM NBR.310-311, 3RD FLOOR GRAND CHINA BUILDING 215 YAOWARAJ ROAD BANGKOK 10100 CHIANG MAI, THAILAND 240 PRAPOKKLAO ROAD, AMPHUR MUANG CHIANG MAI 50200, THAILAND

CHIANG RAI, THAILAND 870 PHAHOLYOTHIN ROAD, CHIANGRAI 57000, THAILAND

PHUKET, THAILAND 78 RANONG ROAD, AMPHUR MUANG PHUKET 83000, THAILAND

TKT FAX RSVN FAX

KRABI, THAILAND 1 TUNG FAH ROAD, AMPHUR MUANG TEL KRABI 8100, THAILAND FAX PATTAYA, THAILAND DUSIT RESORT PATTAYA HOTEL 240/2 MOO 5, PATTAYA BEACH ROAD CHOLBURI 20150, THAILAND

TEL RSVN

: : : :

280-0100-110 280-1748 628-2000, 280-0060 628-2486, 280-0735

(053) 210-210 (053) 210-041 (053) 211-044-7 (053) 210-042

(076) 212-400 (076) 258-233 (076) 211-195 (076) 216-776

: (075) 622-440-2 : (075) 622-443

: (038) 420-994-97 : (038) 420-998

KHONKAEN, THAILAND SOFITEL RAJA ORCHID KHONKAEN HOTEL TEL 9/9 PRACHASUMRAN ROAD, FAX AUPHUR MUANG, KHONKAEN 40000, THAILAND

: (043) 227-701-05 : (043) 227-708

UBON RATCHATHANI, THAILAND 364 CHAYANGGOOL ROAD, AMPHUR MUANG UBON RATCHATHANI 34000, THAILAND

: (045) 313-340-2 : (045) 313-344

TEL FAX

61