THAI : Annual Report 2000

1

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

THAI AIRWAYS INTERNATIONAL PUBLIC COMPANY LIMITEDA n n u a l R e p o r t 1 9 9 9 / 2 0 0 0

2

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

O p e r a t i o n a l H i g h l i g h t s o f 1 9 9 9 / 2 0 0 0

3

100,000

130,000

160,000

1998 1999 2000

15

0,5

85

14

4,8

10

16

7,7

27

90,000

100,000

120,000

1998 1999 2000

10

5,4

93

10

7,6

53

12

1,7

12

5,000

10,000

15,000

1998 1999 2000

13

,18

7

17

,16

4

14

,93

2

Total Assets 167,727 144,810 150,585

Shareholder’ Equity 9,602 9,960 4,410

Share Capital 14,000 14,000 14,000

Operating Revenues 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

Amount per share (Baht)

Per Value 10 10 10

Net Profit 3.37 3.79 2.64

Total Assets 119.81 103.44 107.56

Shareholders’ Equity 6.86 7.11 3.15

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

(in million Baht, except amount per share)

Fiscal Year 1999/2000 1998/1999 1997/1998

Thai Airways International Public Company Limited and Subsidiaries

F i n a n c i a l H i g h l i g h t s

(Million Baht) (Million Baht) (Million Baht)

Total Assets Operating Revenues Operating Profit

4

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 ever-

changing 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

T

C h a i r m a n ’ s S t a t e m e n t

5

Mahidol ChantrangkurnChairman

November 10, 2000

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

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 e s s a g e f r o m t h e M a n a g e m e n 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 DevelopmentThe 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.

T

7

Increasing in Competitive AdvantagesThree 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 Standardsfor 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 Serviceand 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.

8

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 ManagementThe 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.

9

Investments to Increase the Country’s PotentialWith 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

10

11

AmountAircraft Type 1999/2000 1998/1999B747-400 14 14B747-300 2 2MD-11 4 4B777-300 4 2B777-200 8 8A330-300 12 11A310-200 1 1A300-600 21 21A300-B4 - 2B737-400 11 11ATR-72 2 2B747-200SF - 1Total 79 79

The fleetIn 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 programaccording to the five year plan (1995/1996-1999/2000). However there are still twoof Boeing 777-300 remained delivery. Total number of aircraft delivery according tothe program will be twenty-one. At the end of fiscal year 1999/2000, total fleet was79 including one Airbus 310-200 still in process of selling.

The third and forth Boeing 777-300 were dilivered in October and December1999 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 servicesto Perth with more capacity and passenger comfort by Airbus 330-300 in stead ofAirbus 300-600.

In this fiscal year, THAI phased out the freighter, Boeing 747-200 since October1999 due to termination of lease contract and sold two of Airbus 300-B4 to AirbusIndustrie in last December 1999.

R e v i e w o f 1 9 9 9 / 2 0 0 0 O p e r a t i o n s

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Destination and Route DevelopmentIn the previous year, the Company aggressively developed and expanded its

serviced destinations and routes to maintain a competitive position in the increasinglycompetitive market. The expansion was continuing in such highly potential andincreasingly stabilized markets as Europe and Australia. At the end of fiscal year1999/2000, 73 cities in 34 countries covering 4 continents of the world, includingdomestic destinations, were covered by the company’s own network. With jointoperations with other airlines, the serviced destinations were extended to the totalof 101cities in 44 countries within 5 continents. Capacity and frequency of eachroute were strategically adapted in response to the growing markets.

North Pacific RouteThe 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 extendedCode-Sharing agreement with United Airlines (UA), the routes of Los Angeles-Denver,Los Angeles-New York, Los Angeles-Seattle, Los Angeles-Washington D.C., andTokyo-Chicago were serviced in addition to Taipei-San Francisco, Los Angles-SanFrancisco, and Los Angles-Chicago. Totally, North Pacific route was added up to 7destinations.

European RouteThe Company totally operated 53 flights a week to Europe after service

expansions. Since the Europe market shown a high potential in being a very strongand stable economy, expansions of the services to this part of the world wereimplemented. They were composed of 3 direct flights and 2 direct flights a week toRome and Athens, respectively, changing from 2 precedent flights a week ofcombined Bangkok-Athens-Rome. As a result, the total direct flights to Rome wereadded up to 6 flights a week. In addition, services to 17 more destinations in CentralEurope from Frankfurt and Munich, including German domestic market were servicedby the Company in cooperation with Lufthansa Airlines.

Australia and New Zealand RouteThe 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 weekin the route, Bangkok-Sydney-Auckland. Moreover, the changes from 2 flights aweek of Bangkok-Sydney-Brisbane to 3 flights a week of Bangkok-Melbourne-Brisbane and from 4 flights a week of Bangkok-Perth to the same frequency ofBangkok-Phuket-Perth were exercised. The latter practice resulted in 4 flights a weekto Perth.

13

Regional RouteDue to the economic recovery of most countries in Asia, especially in Far East

Asia and Southeast Asia, the Company made several routing adjustments toaccommodate the changing market requirement. In the previous year, it introduced2 additional flights a week for Bangkok-Taipei-Seoul and increased the capacity ofthe aircraft serving the routes to Hong Kong, Taipei, and Osaka to accommodate theincreased demand. It inaugurated 2 additional flights a week for Bangkok-Seoulroute, total of 6 flights a week. For the destinations in China, the Company increasedthe capacity by replacing the existing servicing aircraft Boeing 737-400 withAirbus 300-600 and increased 2 additional flights a week to Shanghai as well as thecapacity of the aircraft which led the service to daily frequency.

For other regional routes, the Company increased the capacity of the aircraftfor Bangkok-Colombo and Bangkok-Dubai routes which shown increasing demandby employing Airbus 330-300. To accommodate increasing traffic in the routes toSoutheast Asia, it increased the capacity of the aircraft in the routes to Singaporeand the routes to Denpasar and Jakarta by replacing Boeing 737-400 with Airbus330-300 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 routeadjustment, it changed the service to Bangkok-Ubon Ratchathani-Da Nang with3 flights a week. Moreover, it also increased the capacity of the aircraft servicingthe route to Vientiane by employing Airbus 300-600 with 7 flights a week.

Domestic RouteIn 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 andan 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 furtherincreased 7 additional flights a week for the route of Bangkok-Khon Kaen. It alsostretched out to another destination, Phetchabun, in the route of Bangkok-Phetchabun-Lampang with 3 flights a week, employing Boeing 737-400. Due to increasing tourismpopularity of the seashores in southern provinces, the Company added more frequencyfor the routes to this area. For the Krabi, it introduced 4 additional combined flightsa week of Bangkok-Krabi-Trang, total of 7 flights a week. Furthermore, it extendedthe connected route from Phuket-Hat Yai to Phuket-Trang-Hat Yai, servicing 7 flightsa week. All of those expansions were made to accommodate the increasing numberof travelers as well as to facilitate tourist industry growth in Thailand.

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14

MarketingUnder the fierce competition in the airline industry, THAI is still operating its

business successfully, especially in providing satisfactory inflight service. With anaggressive marketing strategy, the Company was able to win passenger preferencein selecting THAI. In the past one year, THAI carried over 17.7 million passengerson both domestic and international flights, which is an increase of 8.6 percent whencompared to last year’s figure. Statistics show an increase in passengers on domesticflights of 6.6 percent and an increase in passengers on international flights of 10.3percent. Strategies that brought about such remarkable increases are the result ofpromoting Thailand both as traveler’s final destination and organizing all majorairports to act as regional hubs for transit flights in the Asia Pacific region and theIndo-China region. Other strategies to expand its market coverage include THAIparticipation in international exhibitions and seminars, etc. In the past year, THAIwas selected as the official carrier for many important meetings includingWorld’s Youth Tour Seminar, The 10th United Nations Conference on Trading andDevelopment, and Annual Asia’s Development Banking Council.

THAI initiated and constantly developed many marketing activities to be inline with its strategies. The joint effort with Tourism Authority of Thailand in promotingThailand to overseas visitors, supporting educational tours for its agents, andparticipating in Star Alliance’s activities that will further strengthen the organizationare 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 THAIservices. Thus the ROP Program was voted among the top three frequent flyerprograms by frequent travelers from around the world, making THAI’s Royal OrchidPlus yet again the best in Asia. Royal Orchid Plus also garnered 3 additional 1999Freddie Awards Best Frequent Flyer Elite-level Program, Best Frequent Flyer AwardRedemption Award, and Best Frequent Flyer Customer Service. There are currentlymore than 1.3 million ROP members in 190 countries worldwide.

THAI also launched several major marketing programs to promote tourismunder the Royal Orchid Holiday program. Firstly, The Undersea Wedding CeremonialEvent at Trang Province in February 2000 was awarded the Pata Gold Award for theBest Public Relations Campaign 2000 and was also recorded in the Guinness Bookof Records. Another program, Thai’s Amazing Family Golf 2000 program, wasorganized to promote golfing in Thailand. Other programs include Health Check-up programs for all passengers traveling from Indo-China, Pre & Post Brochuredistribution to bring about other countries’ interest in organizing internationalconventions and major events in Thailand, etc.

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

15

Star AllianceThrough all the years of its business operation, THAI realizes the importance of

forming business alliances to achieving global networking coverage that couldimpressively satisfy every single passenger’s wish to reach their final destinationwith comfort and convenience.

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

Currenlty, the Star Alliance Network consists of 15 member airlines, whichinclude Lufthansa Airlines, Scandinavian Airlines System, United Airlines, Air CanadaAirlines, Varig Brazilian Airlines, Ansett Australian Airlines, Air New Zealand, AllNippon Airways, Austrian Airlines, Lauda Air, Tyrolean Airways, Singapore Airlines,Mexicana Airlines, British Midland Airways, and Thai Airways International. TheStar Alliance network covers more than 800 destinations in 130 countries, whichenables it to serve customers from any part of the world, and to become a trulyglobal network.

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

Cargo and Mail OperationsTHAI 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 foreignairlines within the Bangkok International Airport. Understanding the importance ofefficiently providing quality services, THAI continually develops its existing systemby investing in advanced technology such as the ORCHIDS database system andTHAIPAC and TG Force services.

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

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

16

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

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

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

Ground ServicesDetermination 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 atcheck-in counters, which raises its service a higher standard in providing an efficientcheck-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 providefaster service and greater convenience. Transiting First and Business Class passengershave special privileges at THAI lounges that are fully equipped with all types ofentertainment and services, thus, providing hours of relaxation and enjoyment untiltake-off time. Upon arrival at destination, VIP passengers will receive conveniencein picking up their baggage since baggage with the Priority Bag Tag will be the firstto be loaded on the carousel. Currently, the First Class Check-in Lounge is stillunder-construction and will be ready for service by April 2001.

Moreover, THAI has plans to install automatic ticketing machines to issuetickets for domestic passengers according to the Self-Service Airport program.This will mean move convenience for passengers who will be able to purchase andconfirm their ticket by themselves via credit cards prior to checking in. The machineinstallation 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 ManagersMeeting with the aim to increase service standards for all passengers receiving THAIservice, with the slogan - “Be Satisfied Only When Customers Are Satisfied” and“Service From Your Heart”.

17

Catering ServicesProviding 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 CateringService Department's priority task. The ISO 9002 Quality Standards, HACCP (HazardAnalysis Critical Control Point) and GMP (Good Manufacturing Practise) stipulatethe 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 toTHAI’s own international flights and has the capacity to produce approximately 36,200meals per day. However, with the high demand for its catering service, THAI hasmade an additional investment of more than 232.5 million baht for expansion of itskitchen space in order to efficiently accommodate production of an additional 5,300meals per day. From such expansion, THAI’s catering production capacity will increaseto 41,500 meals per day. Moreover, THAI plans to move its International Flight Kitchento the new Bangkok International Airport at Nong Ngu Hao, an investment ofapproximately 3,000 million baht, to further expand its production to a maximumcapacity of 45,676 meals per day by year 2004.

Not only does the Domestic Flight Kitchen provide meals for passengers on alldomestic airlines, its service has further expanded and diversified. THAI is now alsoproviding outside catering services, initiating a catering training center and settingstudy courses in airline catering and Thai cuisine, opening new outlets of its BakeryHouse “Puff & Pie” from the current 12 outlets to 35 outlets, and opening restaurantsto accommodate social events and meetings.

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

Technical ServicesTHAI not only puts special attention on enhancing the inflight convenience and

comfort for all passengers during flights, but, even more importantly, ensures thesafety of all passengers on-board. Continuous developmental programs through theuse of advanced technology to ensure the highest standard of safety are constantlyimplemented in order to fully strengthen the maintenance system with inaccordance with the company’s safety policy. Currently, there are four maintenancehangars with the capability to handle technical services from minor technical problemsto major aircraft overhaul within the first aircraft maintenance facility at BangkokInternational Airport, Don Muang. Additionally the second aircraft maintenance facilityat U-Tapao Airport in Rayong province has the capability to overhaul three largeaircraft simultaneously as well as to repair equipment and spare parts for

18

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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 severalleading international aviation authorities, including the US Federal AviationAdministration (FAA), the European Joint Aviation Authorities (JAA), Australia’s CASAand Japan’s JCAB.

This year, THAI is proud to receive high confidence and trust from AirbusIndustry Co., Ltd. for its excellence in technical maintenance of aircraft modelsAirbus 300-600 and Airbus 330 by achieving the Technical Dispatch Reliabilityefficiency at above the worldwide average standard. Moreover, Japan Air SystemCo., Ltd. has high confidence in THAI technical expertise and has agreed to utilizeits services for maintenance of its Airbus 300-B4 aircraft. This is the first time THAIhas offered heavy maintenance service to a Japanese airline. An agreement wassigned in August 2000.

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

Information TechnologyDuring 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 alsoreformulated IT strategies and plans towards the maximum benefits of customers,business partners, THAI and alliances in the short and long term. These customer-centric strategies include the preparation of competent personnel and necessarytechnological infrastructure to cope with the new technology, the new internationalairport, Star Alliance initiatives, E-commerce and E-business transformation in thenear future.

19

In customer service areas that customer convenience, safety and benefitsalways come first, several IT services have been leveraged to ensure the excellentservice and optimum customer satisfaction. THAI’s Internet services have beenextended to cover THAI flight reservation on THAI website (www.thaiair.com orwww.thaiairways.com), THAI cargo information and shipment status tracking on CargoHomepage (www.thaicargo.com), THAI enterprise information according to OfficialInformation Act, B.E. 2540 on Public Information Homepage. Other newdevelopments include the roll-out of the Customer Information System that helpsprovide the statistical and analysis information for market planning and decisionmaking. The business requirement of Customer Relationship Management system isbeing studied, and upon completion, will ensure customer satisfaction and recognitionwith appropriate response, retain customer loyalty and also attract more newcustomers. Star Extranet, co-developed with Star Alliance members, has beencompleted resulting in faster, cost-effective and secure network infrastructure thatprovides easy access to major application systems across Star Alliance members.Starnet, the other related network, when completed, will dramatically enhance theinformation sharing capability and help deliver the better seamless services topassengers.

Moreover, the existing application systems and infrastructure have beenenhanced to increase operational efficiency and decrease operational cost.The new THAI Flight Planning system is being developed to achieve the perfectratio of fuel consumption and payload for all company flights for all fleets. RevenueManagement System is being developed to control flight reservation for optimumrevenue. To serve domestic passengers for the initial phase, THAI is developingElectronic ticketing system and Self-Service Kiosk System. For Cargo services, THAIis developing the messages exchange with Custom Department using Electronic DataInterchange/EDI. Furthermore, the IT infrastructure has been enhanced and expandedto boost the overall productivity. The Local Area Network (LAN) facilities, togetherwith Lotus Notes and Intranet Systems have been gradually expanded to otherfunctions in order to improve inter and intra departmental and enterprisecommunication, coordination and collaboration, and serve as the central knowledgebase of all THAI staff. Besides, ISO document management applications on LotusNotes are being developed to support the ISO 9000 and ISO 14000 implementationin THAI. The front end and back end system will be fully interconnected to meet thenew demand of the electronic commerce. Other infrastructure preparation is theestablishment of security measures and the installation of the security system to preventthe Internet applications from the malicious or accidental intruders.

20

¥â«¬ª – ‘ ‘¿“æ¢Õß ÿ§ “°’Ëºà“ °“ §—¥ · –°“ Õ ¡Õ¬à“ßµàÕ‡ ËÕß °“ ‘ ‰ ¬®÷ß “¡“ —°…“¡“µ “°“ „Àâ ‘°“ ’Ë‡ªì ‡ ‘»‰¥â¥â«¬¥’µ Õ¥¡“

Human Resource DevelopmentGreetings 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 thepast 40 years of service. Thus, THAI receives praise and recognition constantly andis a popular airline among its customers. Nevertheless, THAI is still determined tofurther improve its quality of service. The charm in its service comes mainly fromthe absorption of Thai cultural values since childhood plus the additional trainingprogram provided by the company instilling its staff with a service-mind.Understanding the importance of quality service, THAI systematically selectscandidates who can well perform meticulously in order to choose those who trulyunderstand service from the heart. Additionally, selected candidates should also beresourceful, conscientious and have good self-control in order to handle everysituation encountered. To produce candidates with such qualifications, all THAIinflight staff are required to enroll in the 3-month theoretical and 6-month inflighttraining programs provided.

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

The Cabin Crew Training Center is considered one of the largest and mostmodern training centers in the world. Its main objective is to utilize the advancedtechnological equipment to provide effective training programs for its crews, andcrews of other airlines, to achieving the highest safety standards. This year THAIinvested over 5 million baht in building a Computer Based Training (CBT) room.The purpose of CBT is to provide knowledge about safety through an interactivecomputer program, which will further enrich staff skills. There are 40 computerswithin 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 surveyconducted by Inflight Research Survey (IRS) in mid-year 2000, Thai AirwaysInternational Public Co., Ltd. was voted as one of the best airlines in the world inproduct development and service delivery.

21

PrivatizationThai 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 furtherstrengthen THAI’s market position and its financial standing. Thus leading the companytowards achieving a higher capability in order to complete in the world's aviationindustry.

In order to achieve a successful privatization plan, THAI has employed aconsortium 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 submittedfor consideration by the THAI “Share Offering” Committee. The Committee hasreached a consensus on the basic principles of the privatization plan. On February15, 2000, the “Share Offering” Committee submitted the plan for the State EnterprisePolicy Committee further approval.

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

In order to effectively implement the privatization plan, the State EnterprisePolicy Committee also proposed that the cabinet assign the current “Share Offering”Committee authorization for the selection and distribution of shares to businessalliances, public investors, and THAI employees. Additionally, the Committee willoversee other related issues in order to carry out such share allocation in accordanceto 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 approvedthe privatization plan of Thai Airways International Public Co., Ltd.

22

Community Activities and Corporate ImageAs 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 transportingSwedish athletes to participate in the “Sydney 2000 Olympics Games”. THAI alsoparticipated 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 beautifulcultural 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 herroyal activities in raising living standards for the people of Thailand.

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

• Presenting a fully equipped ambulance to Her Royal HighnessPrincess Maha Chakri Sirindhorn for use by the elderly at the ChalermRaja Kumari Institute.

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

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

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

23

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 knowledgeto the community to encourage villagers to bring back elephants totheir original habitat.

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

• Supporting “When Their Dreams Come True” Program for underprivilegedchildren 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, SnookerCompetition, etc.

24

25

R e v i e w o f 1 9 9 9 / 2 0 0 0 F i n a n c e

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.

26

5,000

6,000

7,000

(MATK)

5,7

89

6,8

38

7,7

527,3

09

6,4

73

3,000

4,000

5,000

3,9

40

4,5

85

5,4

69

5,0

97

4,4

66

Production

(MRTK)

Traffic

1996 1997 1998 1999 2000

1996 1997 1998 1999 2000

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

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

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.

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

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

1999/2000.

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

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.

InvestmentsTHAI’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

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.

27

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

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

million baht.

Production and TrafficThis 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%.

1999/2000 Change

Production MATK 7,752 + 6.1%

Traffic MRTK 5,469 + 7.3%

Load Factor % 70.6 + 0.9

Passenger Production MASK 55,517 + 7.2%

Passenger Traffic MRPK 41,347 + 9.8%

Cabin Factor % 74.5 + 1.8

Freight Production MADTK 2,756 + 4.1%

Freight Traffic MRFTK 1,690 + 2.8%

Freight Load Factor % 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.

500

1,000

1,500

1,2

66

1,5

48

1,6

90

1,6

44

1,5

98

20,000

30,000

40,000

1996 1997 1998 1999 2000

29

,22

6

32

,96

9

41

,34

7

37

,64

231

,28

8

(MRPK)

Passenger Traffic

(MRFTK)

Freight Traffic

1996 1997 1998 1999 2000

28

RevenueTHAI 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.

(million baht)

1999/2000 Change

Passengers 85,118 + 14.2%

Excess Baggage 505 + 6.3%

Freight 19,573 + 11.7%

Mail 611 - 9.1%

Charter 463 - 20.2%

Total transportation revenue 106,270 + 13.3%

Other activities revenue 15,190 + 9.4%

Revenue from subsidiary companies 252 -

Total operating revenue 121,712 + 13.1%

Other income 1,640 - 63.6%

Total revenue 123,352 + 10.0%

Transportation Revenue and YieldsRevenue 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%

Freight (Baht/RFTK) 11.59 + 8.7%

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.

50

60

70

68

.1

67

.0

70

.6

69

.7

69

.0

(%)

Load Factor

1996 1997 1998 1999 2000

29

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

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

(million baht)

1999/2000 Change

Catering services 3,408 + 6.4%

Domestic catering and restaurant 1,025 + 3.6%

Limousine services 305 + 13.0%

Ground handling and services to air carriers 10,329 + 14.1%

Sales on board 102 - 10.5%

Agent distribution services 21 - 91.7%

Total 15,190 + 9.4%

Revenue from Subsidiary CompaniesIn 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 RevenuesOther 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%

Total 1,640 - 63.6%

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.

10

13

16

14

.3

15

.2

17

.716

.315

.2

(Million persons)

Number of Passengers

1996 1997 1998 1999 2000

30

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

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

previous year.

(million baht)

1999/2000 Change

Flight operations 23,043 + 53.1%

Maintenance & overhaul 9,101 + 11.8%

Ground operations 16,104 + 8.7%

Passenger services 13,297 + 11.0%

Marketing 12,520 + 10.3%

Administration & general 1,814 + 1.7%

Remuneration to Board of Directors 4 + 300.0%

Lease of aircraft & spare parts 10,573 + 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 + 6.6%

Subsidiary companies expenses 97 -

Total operating expenses 106,780 + 17.5%

Other expenses 11,657 - 24.5%

Total expenses 118,437 + 11.4%

Transportation ExpensesTotal 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.

10,000

50,000

100,000

78

,02

2

10

5,4

93

12

1,7

12

10

7,6

53

84

,68

7

1996 1997 1998 1999 2000

(Million Baht)

Operating Revenues

31

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

baht representing an increase of 687 million baht or 6.6% from last year.

(million baht)

1999/2000 Change

Catering services 2,469 + 5.7%

Domestic catering and restaurant 860 + 10.4%

Limousine services 346 + 9.8%

Ground handling and services to air carriers 7,420 + 7.5%

Sales on board 7 - 87.0%

Agent distribution services 3 - 90.3%

Total 11,105 + 6.6%

Subsidiary Companies ExpensesExpenses 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 ExpensesOther 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%

Pension fund 57 - 38.7%

Others 1,461 + 63.4%

Total 11,657 - 24.5%

Net Profit of Minority InterestIn 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.

4,000

5,000

6,000

4,8

86

5,2

68

4,9

15

6,3

93

4,0

04

(Million Baht)

Profit Before Tax

1996 1997 1998 1999 2000

32

The Company 1999/2000 1998/1999 1997/1998

Number of Aircraft 79 79 77Flight Hours (Block Hours) 255,668 244,065 238,696Available Ton-Kilometres (Million) 7,752 7,309 6,838Revenue Ton-Kilometres (Million) 5,469 5,097 4,585Load Factor (%) 70.6 69.7 67.0Number of Passengers (000) 17,700 16,331 15,199Available Seat-Kilometres (Million) 55,517 51,788 48,557Revenue Passenger-Kilometres (Million) 41,347 37,642 32,969Cabin Factor (%) 74.5 72.7 67.9Available Dead Load Ton-Kilometres (Million) 2,756 2,648 2,468Revenue Freight Ton-Kilometres (Million) 1,690 1,644 1,548Freight Load Factor (%) 61.3 62.1 62.7Number of Personnel (People) 25,632 24,148 24,222Profitability (Result before Tax) (Million Baht) 4,820.3 6,392.7 5,268.2

Notes : (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 TermsAvailable 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.

T e n - Y e a r R e v i e w

33

1996/1997 1995/1996 1994/1995 1993/1994 1992/1993 1991/1992 1990/1991

76 73 69 61 62 67 60233,495 211,818 201,973 186,321 175,931 172,924 162,395

6,473 5,789 5,469 5,011 4,662 4,461 4,0234,466 3,940 3,755 3,467 3,066 2,781 2,56269.0 68.1 68.7 69.2 65.8 62.3 63.7

15,178 14,308 12,834 11,502 10,183 8,720 8,08145,353 42,099 39,795 36,279 33,878 32,263 28,70131,288 29,226 26,558 24,733 22,208 20,226 18,319

69.0 69.4 66.7 68.2 65.6 62.7 63.82,391 2,000 1,864 1,746 1,613 1,558 1,4421,598 1,266 1,320 1,197 1,020 908 86466.8 63.3 70.8 68.6 63.2 58.3 59.5

24,072 22,136 21,541 19,944 19,560 19,286 18,2724,004.1 4,885.6 4,595.6 4,212.2 1,380.8 4,381.1 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.

34

A u d i t C o m m i t t e e ’ s R e p o r t

The Audit Committee consisted of 3 persons, all of whom are members onthe 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 uponthe internal audit conclusion, evaluation of internal control and the total quality offinancial statement including the process of producing the activities and financialreport for the fiscal year 2000.

The Audit Committee has held a meeting with the Government Auditors todiscuss the accounting audit for the fiscal year 2000 and was informed that it was notaware of any event, which would materially affect the company’s operations.

(Mr. Poonsup Piya-anant)Chairman of the Audit Committee

November 23, 2000

To the Shareholders,

35

This letter is given to confirm that the English version of the Report ofIndependent Auditor together with the financial statements for the years endedSeptember 30, 2000 and 1999 of Thai Airways International Public Company Limitedand the consolidated financial statements for the years ended September 30, 2000and 1999 of Thai Airways International Public Company Limited and its subsidiarieswas translated by Thai Airways International Public Company Limited. The StateAudit Office has reviewed the aforementioned translated Report of IndependentAuditor and the financial statements and found that they were translated from that ofthe Thai version.

Given on November 23, 2000

(Pradharn Darbphechra)Acting the Governor of the State

Audit Office

No. 0021/1274 The State Audit OfficeRama VI Road, Phayathai, Bangkok 10400

36

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.

To : The Shareholders ofThai Airways International Public Company Limited

O f f i c i a l T r a n s l a t i o n R e p o r t o f I n d e p e n d e n t A u d i t o r

37

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

38

(Unit : Baht)

CONSOLIDATED THE COMPANY

Accounting Supplementary 2000 1999 2000 1999ASSETS Policies Information (new adjustment) (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

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 3.3 12,058,680,719 10,570,958,228 12,057,961,974 10,570,958,228

Inventories and supplies 2.2 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

Other current assets 3.5 2,815,914,920 9,320,925,881 2,786,109,235 9,360,181,465

Total Current Assets 41,084,038,732 38,533,069,961 40,824,761,537 38,424,077,903

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

Total Investments 922,331,366 969,301,905 1,089,595,224 1,078,243,963

Property, Plant and Equipment - Net 2.4 3.7

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

Total Property, Plant and Equipment - Net 118,153,380,981 95,449,495,214 118,142,918,520 95,449,495,214

Other Assets

Concessions for acquisitions of aircraft 2.5 5,998,117,168 9,478,198,057 5,998,117,168 9,478,198,057

and engines

Loan for investment in aircraft spare parts 3.8 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

Total Assets 167,727,024,123 145,606,727,598 167,624,548,325 145,606,677,598

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

As at September 30, 2000 and 1999Thai Airways International Public Company Limited and Subsidiaries

B a l a n c e S h e e t s

39

(Unit : Baht)


Accounting Supplementary 2000 1999 2000 1999LIABILITIES AND SHAREHOLDERS’ EQUITY Policies Information (new adjustment) (new adjustment)

Current Liabilities

Accounts payable 2,206,276,733 2,276,492,113 2,206,276,733 2,276,492,113

Debts due within one year

Long-term loans 3.9 11,968,544,716 13,826,672,173 11,968,544,716 13,826,672,173

Obligations under capital leases 2.6 3.10 5,955,569,677 5,666,290,057 5,955,569,677 5,666,290,057

Promissory notes 3.11 1,076,000,000 - 1,076,000,000 -

Other current liabilities

Accrued expenses 12,907,469,051 11,804,344,956 12,907,389,051 11,804,294,956

Accrued dividends 3.14 27,064,347 27,267,833 27,064,347 27,267,833

Accrued income taxes 57,554,716 15,696,238 11,546,343 15,696,238

Unearned transportation revenue 11,425,548,195 9,711,927,614 11,425,548,195 9,711,927,614

Other current liabilities 3,872,047,445 3,461,887,011 3,870,728,236 3,461,887,011

Total Current Liabilities 49,496,074,880 46,790,577,995 49,448,667,298 46,790,527,995

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

Total Other Liabilities 8,254,558,274 10,336,467,885 8,254,558,274 10,336,467,885

Total Liabilities 158,125,510,138 140,777,110,356 158,078,102,556 140,777,060,356

Shareholders’ Equity

Share capital

Registered:

1,600 million ordinary shares, par value of Baht 10 each 16,000,000,000 16,000,000,000 16,000,000,000 16,000,000,000

Issued and fully paid

1,400 million ordinary shares of Baht 10 each 14,000,000,000 14,000,000,000 14,000,000,000 14,000,000,000

Share premium 4,750,000,000 4,750,000,000 4,750,000,000 4,750,000,000

Retained earnings (deficit)

Appropriated

Legal reserve 3.13 1,032,785,577 1,032,785,577 1,032,785,577 1,032,785,577

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

Minority interest 55,068,216 - - -

Total Shareholders’ Equity 9,601,513,985 4,829,617,242 9,546,445,769 4,829,617,242

Total Liabilities and Shareholders’ Equity 167,727,024,123 145,606,727,598 167,624,548,325 145,606,677,598


(Signed) Bhisit Kuslasayanon(Bhisit Kuslasayanon)President

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

40

(Unit : Baht)


Accounting Supplementary 2000 1999 2000 1999Policies Information (new adjustment) (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

Mail 610,574,377 672,071,080 610,574,377 672,071,080

Other activities 3.15 15,441,965,422 13,881,305,498 15,189,845,388 13,881,305,498

Total Operating Revenues 121,711,768,130 107,652,952,162 121,459,648,096 107,652,952,162

Other Revenues

Share of net profit (loss) from subsidiary companies - - 65,071,801 7,774,175

Share of net profit from associated companies 164,871,363 160,075,104 164,871,363 160,075,104

Interest income 379,737,476 548,314,526 375,163,862 539,997,785

Other income 3.16 1,095,315,741 3,791,753,529 1,095,315,741 3,791,753,529

Total Other Revenues 1,639,924,580 4,500,143,159 1,700,422,767 4,499,600,593

Total Revenues 123,351,692,710 112,153,095,321 123,160,070,863 112,152,552,755

Operating Expenses

Flight operations 23,042,368,514 15,054,133,436 23,042,368,514 15,054,133,436

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

Administration and general 1,911,052,204 1,784,072,454 1,814,300,819 1,783,548,248

Remuneration to board of directors 4,064,069 1,003,290 4,001,469 984,930

Lease of aircraft and spare parts 10,572,912,022 9,641,516,483 10,572,912,022 9,641,516,483

Depreciation of aircraft 7,345,273,880 6,244,960,075 7,345,273,880 6,244,960,075

Depreciation of other fixed assets 1,776,702,409 1,431,752,967 1,776,272,893 1,431,752,967

Other activities 11,105,077,029 10,418,340,963 11,105,077,029 10,418,340,963

Total Operating Expenses 106,779,881,100 90,860,924,908 106,682,637,599 90,860,382,342


for the years ended September 30, 2000 and 1999Thai Airways International Public Company Limited and Subsidiaries

S t a t e m e n t s o f I n c o m e

41

(Unit : Baht)



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 56,912,828 93,321,681 56,912,828 93,321,681

Other expenses 3.17 1,461,818,814 893,963,794 1,461,776,032 893,963,794

Total Other Expenses 11,657,214,083 15,433,126,813 11,657,171,301 15,433,126,813

Total Expenses 118,437,095,183 106,294,051,721 118,339,808,900 106,293,509,155

Profit (losses) before income tax 4,914,597,527 5,859,043,600 4,820,261,963 5,859,043,600

Income tax 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 - - -

Net profit (losses) for the year 4,716,828,527 4,707,329,346 4,716,828,527 4,707,329,346

Earnings (losses) per share :

Net profit (losses) 3.37 3.36 3.37 3.36




42

(Unit : Baht)



Share capital

Common stocks

At the beginning of the year 14,000,000,000 14,000,000,000 14,000,000,000 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

Capital Surplus

Premium on share capital




Retained earnings (deficit)

Appropriated

Legal reserve




Unappropriated

Balance at the beginning of the year, before adjusting (9,823,161,317) (15,373,026,746) (9,823,161,317) (15,373,026,746)

Cumulative effect of change in accounting policy

income tax in accordance with the new

revised accounting standard 477,553,224 746,439,529 477,553,224 746,439,529

Adjustment of income tax (1,917,534,217) (1,636,765,336) (1,917,534,217) (1,636,765,336)

Adjustment of subsidiary companies’ retained earnings - - (23,314,907) (31,086,543)


with regard to deferred charges 3.1.1 (1,953,224,999) (1,758,818,963) (1,929,910,092) (1,727,732,420)


with regard to staff welfare fees 3.1.2 (1,736,801,026) (1,638,326,165) (1,736,801,026) (1,638,326,165)

Balance at the beginning, after adjusting (14,953,168,335) (19,660,497,681) (14,953,168,335) (19,660,497,681)

Increase (decrease) during the year 4,716,828,527 4,707,329,346 4,716,828,527 4,707,329,346

At the end of the year (10,236,339,808) (14,953,168,335) (10,236,339,808) (14,953,168,335)

Minority interest

At the beginning of the year - - - -

Increase during the year 55,068,216 - - -

At the end of the year 55,068,216 - - -

Total shareholders’ equity 9,601,513,985 4,829,617,242 9,546,445,769 4,829,617,242



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



43

(Unit : Baht)



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 477,553,224 746,439,529 477,553,224 746,439,529

- Adjustment of income tax (1,917,534,217) (1,636,765,336) (1,917,534,217) (1,636,765,336)

- Adjustment of subsidiary companies’ retained earnings - - (23,314,907) (31,086,543)


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)


policy with regard to staff welfare fees 3.1.2 (1,736,801,026) (1,638,326,165) (1,736,801,026) (1,638,326,165)

Unappropriated retained earnings (deficit)

at the beginning of the year after adjustment (14,953,168,335) (19,660,497,681) (14,953,168,335) (19,660,497,681)

Add Profit for the year 4,716,828,527 4,707,329,346 4,716,828,527 4,707,329,346

Total unappropriated retained earnings (deficit) (10,236,339,808) (14,953,168,335) (10,236,339,808) (14,953,168,335)

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

Total retained earnings (deficit) at the end of the year (9,203,554,231) (13,920,382,758) (9,203,554,231) (13,920,382,758)



S t a t e m e n t s o f R e t a i n e d E a r n i n g s



44

(Unit : Baht)



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

Adjustment to reconcile net profit to net cash

provided by (used in) operating activities :

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 - - -

Allowance for doubtful accounts, impairment in value

of assets and reserve for obsolete inventories 668,027,967 514,769,929 668,027,967 514,769,929

Operating profit before changes in operating

assets and liabilities 18,401,335,136 18,697,970,934 18,287,515,603 18,690,196,759

Decrease (increase) in operating assets :

Accounts receivable (1,484,598,318) (343,363,078) (1,483,879,572) (343,363,078)

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

Concessions for acquisitions of aircraft and engines 266,831,879 (193,686,229) 266,831,879 (193,686,229)

Increase (decrease) in operating liabilities :


Accounts payable (45,842,735) 292,236,032 (46,874,395) 292,236,032

Accrued expenses and other current assets 1,660,861,445 (118,974,896) 1,614,531,244 (118,974,896)

Staff pension fund 733,420,337 379,669,811 733,420,337 379,669,811

Unearned transportation revenue 1,713,620,581 413,548,014 1,713,620,581 413,548,014

Net cash provided by operating activities 23,037,716,522 10,954,303,541 22,946,476,312 10,946,138,375



S t a t e m e n t s o f C a s h F l o w s

45

(Unit : Baht)



Cash flows from investing activities

Cash paid for acquisition of fixed assets (12,070,560,135) (5,084,288,236) (12,059,668,158) (5,084,288,236)

Cash received from sales of assets 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 - 1,722,184,190

Net cash provided by (used in) investing activities (10,856,238,340) 1,010,722,804 (10,845,346,363) 1,010,722,804

Cash flows from financing activities

Cash paid for repayment of long-term loans (19,081,974,841) (12,112,368,677) (19,081,974,841) (12,112,368,677)

Cash received from promissory notes 10,526,000,000 - 10,526,000,000 -

Dividends paid (203,486) (656,787) (203,486) (656,787)

Net cash provided by (used in) financing activities (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

Effects of exchange rate changes

on cash and bank balance 10,322,414 533,336,141 10,322,414 533,336,141

Cash and cash equivalents at the end of the year 3.21 13,565,438,194 9,929,815,925 13,336,924,795 9,781,650,759

Supplementary cash flows information :

Net cash paid during the year for

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

Non-cash transaction

Assets in accordance with financial lease 20,112,890,468 - 20,112,890,468 -




46

1. PRINCIPLES OF CONSOLIDATIONThe 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 SolutionCompany Limited. Investments in these subsidiaries are stated at equity method. Significant transactions between the Company and its subsidiarieshave been eliminated from the consolidated financial statements.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES2.1 Allowance for Doubtful Accounts

The allowance for doubtful accounts is set up for trade accounts receivable, excluding those from government agencies and stateenterprises, 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 50Over 1 year to 2 years 75Over 2 years 100

2.2 Inventories and SuppliesInventories 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, provisionfor obsolescence is made at the annual rate of 10%.

2.3 Investments2.3.1 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 Equipment2.4.1 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 fromconcessions for acquisitions of aircraft. Depreciation is calculated by the straight-line method over the estimated useful life of 20 years with thesalvage 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 calculatingby 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 overthe 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 thestraight-line method over the estimated useful life ranging from 5 to 20 years.

2.5 Concessions for Acquisitions of Aircraft and EnginesConcessions 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 arereceived, the entire concessions under contractual agreements have been transferred from “Deferred concessions to reduce cost of aircraft” toreduce cost of received aircraft. When assets or services under the concessions are received, the concessions for acquisitions of aircraft andengines will be transferred to assets or expenses as is the case.

for the year ended September 30, 2000 and 1999Thai Airways International Public Company Limited and Subsidiaries

N o t e s t o t h e F i n a n c i a l S t a t e m e n t s

47

2.6 Obligations Under Capital LeasesObligations 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 Recognition2.7.1 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 theCompany has already issued the air waybills and carried by other air carriers will be recognized as revenue when the other air carriers do not billwithin one year.

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

2.8 Earnings (Losses) per ShareEarnings (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 SystemExpenses 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 TransactionsForeign 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 orexpenses in the period incurred.

2.11 Staff Provident FundThe 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 isrecognized as an expense of the Company.

2.12 Income TaxThe 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.

48

3. SUPPLEMENTARY INFORMATION

3.1 The Effect of the Change in Accounting Policies and Accounting EstimatesIn 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 assetsfollowing the Accounting Framework and previously recorded as an asset and amortized within 5 years. Instead the deferred charges are nowrecognized as entire expenses in the Company statement of income. Also the Company has restated its 1999 financial statements, shown forcomparative purpose, as though the Company had consistently followed the new accounting policy. The change in accounting policy has resultedin 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 endedSeptember 30, 2000 and 1999 of the consolidated and the Company statement of income decrease by Baht 610.23 million and Baht 202.18million respectively, and earnings per share for the same periods decrease by Baht 0.31 and Baht 0.10 respectively.

3.1.2 Staff welfare feesIn 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 theyear incurred. The Company has restated its 1999 financial statements, shown for comparative purpose, as though the Company had consistentlyfollowed the new accounting policy. The change in accounting policy has resulted in an increase in accumulated deficit at the beginning of thefiscal 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 theCompany statements of income decrease by Baht 110.50 million and Baht 98.47 million respectively, and earnings per share for the same periodsdecrease by Baht 0.06 and Baht 0.05 respectively.

3.2 Cash and Bank Balance (Unit : Million Baht)


2000 1999 2000 1999Cash in Thailand 12.12 12.57 12.12 12.57Cash in stations abroad 12.57 12.50 12.57 12.50Bank in Thailand 5,175.51 1,335.60 5,084.23 1,320.17Bank in stations abroad 4,249.97 3,539.27 4,249.97 3,539.27Total 9,450.17 4,899.94 9,358.89 4,884.51

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

(Unit : Million Baht)CONSOLIDATED THE COMPANY

PERIOD OF OVERDUE 2000 1999 2000 1999Not over 6 months 11,991.52 10,516.51 11,990.80 10,516.51Over 6 months to 1 year 117.29 40.80 117.29 40.80Over 1 year to 2 years 33.75 136.19 33.75 136.19Over 2 years 569.28 546.32 569.28 546.32

12,711.84 11,239.82 12,711.12 11,239.82Less Allowance for doubtful accounts (653.16) (668.86) (653.16) (668.86)Total 12,058.68 10,570.96 12,057.96 10,570.96

49

3.4 Inventories and Supplies (Unit : Million Baht)


2000 1999 2000 1999Aircraft spare parts 2,568.22 2,331.75 2,568.22 2,331.75Vehicle spare parts and ground supporting equipment 157.00 143.39 157.00 143.39Unused aircraft spare parts and spare parts for sale 1,534.86 1,308.05 1,534.86 1,308.05Fuel and oil for aircraft 49.40 41.33 49.40 41.33Goods for sales 170.07 129.59 170.07 129.59Cabin supplies 115.75 295.85 115.75 295.85Supplies and other consumable materials 30.77 33.70 30.77 33.70Stationery and office supplies 84.20 89.50 84.20 89.50Inventories in transit 98.49 224.62 98.49 224.62Obsolete and damaged inventories for disposal 88.51 19.34 88.51 19.34

4,897.27 4,617.12 4,897.27 4,617.12Less Provision for obsolete inventories, aircraft

spare parts (1,407.08) (856.53) (1,407.08) (856.53)Total 3,490.19 3,760.59 3,490.19 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 forsales within 3 years amounting to Baht 1,534.86 million are depreciated at Baht 1,061.75 million. Provision for obsolete inventories is Baht 88.51million. Thus, total provision for obsolete inventories amounted to Baht 1,407.08 million.

3.5 Other Current Assets (Unit : Million Baht)


2000 1999 2000 1999Receivable - IATA 691.71 580.53 691.71 580.53Loans to aircraft companies - 6,299.12 - 6,299.12Loans to employees 37.43 35.98 37.43 35.98Loans to subsidiary companies - - 66.32 39.42Other receivable 1,426.65 1,250.07 1,426.65 1,250.07Accrued income 205.73 197.68 109.61 197.52Value added tax 562.30 1,065.26 562.30 1,065.26

2,923.82 9,428.64 2,894.02 9,467.90Less Provision for doubtful debt (107.91) (107.72) (107.91) (107.72)Total 2,815.91 9,320.92 2,786.11 9,360.18

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

50

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

2000 1999 2000 1999 2000 1999Subsidiary CompaniesThai Information Solution Company Limited 100 100 99.96 95.51 4.45 7.73

(paid 25% of registered shares)Thai-Amadeus Southeast Asia Company Limited 55 100 67.31 13.43 60.62 0.04Total 167.27 108.94 65.07 7.77Associated CompaniesRoyal Orchid Hotel (Thailand) Public Co., Ltd. 24 24 278.19 274.89 37.05 41.92

(Market value as at September 30, 2000amounting to 540.00 million Baht andSeptember 30, 1999 amounting to 365.63 million Baht)

Donmuang International Airport Hotel Company Limited 40 40 218.38 189.98 57.20 83.10Bangkok Aviation Fuel Services Public Company Limited 30.7 30.7 305.93 277.42 59.23 28.28Phuket Air Catering Company Limited 30 30 18.16 6.77 11.39 6.78Total 820.66 749.06 164.87 160.08Total investment in subsidiary and associated companies 987.93 858.00 229.94 167.85

3.6.2 Other investments are recorded by the cost method.(Unit : Million Baht)

PERCENTAGE OF INVESTMENT PROFIT

SHAREHOLDING AMOUNT SHARING

2000 1999 2000 1999 2000 1999Fuel Pipeline Transportation Limited 8.4 8.4 133.00 133.00 - -AMADEUS MARKETING, S.A. - 8.0 - - - 51.25Aeronautical Radio of Thailand Limited 5.5 5.4 36.37 35.58 - -SITA Investment Certificate 46.58 48.14 - -TRADESIAM Company Limited 3.5 3.5 1.75 1.75 - -

(paid 25% of registered shares)EQUANT N.V. 10.19 - - -Other Shares 6.77 1.77 0.06 0.07Less Allowance for impairment in value of investment (133.00) - - -Total other investments 101.66 220.24 0.06 51.32Total investments 1,089.59 1,078.24 230.00 219.17

Investment in EQUANT N.V., a company is registered in The Netherlands and listed in New York Stock Exchange and in Bourse deParis, 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 Companyby Societe Internationale de Telecommunications Aeronautiques S.C. or SITA. SITA is the organization that provides telecommunication servicesto airlines all over the world with its head office in Brussels, Belgium. SITA collects expenses from its members in proportion to the use of itsservices. In case the revenues exceed the expenses, they will be proportionally appropriated to the Company. From 1990 to 1998, SITA has notappropriated 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 theEQUANT N.V. that SITA puts on the market.

51

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


2000 1999 2000 1999AircraftAdvance payments for aircraft on order 4,576.87 8,124.26 4,576.87 8,124.26

40 Aircraft 95,136.48 89,126.81 95,136.48 89,126.8121 Aircraft under capital leases 56,230.69 33,591.23 56,230.69 33,591.2361 Total Aircraft 155,944.04 130,842.30 155,944.04 130,842.30

Revolving aircraft spare parts 21,844.68 19,327.45 21,844.68 19,327.45Other fixed assetsLand and buildings 3,377.13 3,377.10 3,377.13 3,377.10Buildings under leasehold 3,945.68 3,472.43 3,945.68 3,472.43Other plants and equipments 16,521.95 16,246.67 16,511.06 16,246.67Building improvements 2,425.99 2,409.76 2,425.99 2,409.76Total other fixed assets 26,270.75 25,505.96 26,259.86 25,505.96Deferred maintenance and overhaul of aircraft 1,928.48 1,159.99 1,928.48 1,159.99Total 205,987.95 176,835.70 205,977.06 176,835.70Less Accumulated depreciation 87,834.57 81,386.21 87,834.14 81,386.21Net fixed assets 118,153.38 95,449.49 118,142.92 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 receivingone 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 737-400and 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. Afterdeducting 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 hasreceived 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 Baht607.41 million.

3.8 Loan for Investment in Aircraft Spare PartsThe Company has signed a technical contract with SR TECHNICS for maintenance of MD-11 TECHNICAL SUPPORT AND MAINTE-

NANCE 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 September30, 2000 amounted to USD 0.87 million or equivalent to approximately Baht 36.69 million.

52

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

LOAN CURRENCY LOAN CURRENCY

2000 1999 2000 1999JPY 10,000,000,000 30,000,000,000 3,945.94 11,616.99USD 1,254,630,960 1,327,299,831 53,153.07 54,597.02THB 3,223,458,900 4,259,621,965 3,223.46 4,259.62Total Long-term loans 60,322.47 70,473.63Less Amount due within one year 11,968.55 13,826.67Amount Due Long-term 48,353.92 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 aircraftamounted 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 andBaht 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 LOAN CURRENCY

2000 1999 2000 1999JPY 28,223,280,792 34,236,264,146 11,136.74 13,257.41USD 863,314,900 426,732,178 36,574.77 17,553.16FRF 114,292,655 142,594,476 653.83 955.46DEM 8,410,694 40,223,516 161.19 903.37Present value of obligations under capital leases 48,526.53 32,669.40Less Amount due within one year 5,955.57 5,666.29Amount Due Long-term 42,570.96 27,003.11

The Company has contractual agreement with option to buy with 16 foreign financial institutions. The accounting policy for record-ing aircraft under capital leases is described in Note 2.6. In the fiscal year 2000, there are 21 aircraft left constituting the Company obligationsunder 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 NotesThe Company has issued the promissory notes to Government Saving Bank and THAI Employees’ Saving & Credit Coops Ltd. amount-

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

3.12 Concessions to Reduce Cost of AircraftThe Company has the right to receive concessions under contracts for acquisition of aircraft and engines. The balance as at Septem-

ber 30, 2000 amounting to USD 119.99 million or approximately Baht 5,083.53 million derives from the balance brought forward from the year1999 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 costof aircraft as described in Note No. 2.5.

3.13 Legal ReserveAt 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 116of the Public Companies Act.

3.14 DividendsAccrued 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.

53

3.15 Other ActivitiesThe results of other activities of the Company are as follows:

(Unit : Million Baht)REVENUES EXPENSES PROFIT (LOSS)

2000 1999 2000 1999 2000 1999Catering Services 3,407.63 3,204.61 2,469.36 2,335.77 938.27 868.84Domestic catering & restaurant 1,024.88 988.71 859.83 779.21 165.05 209.50Limousine services 305.12 269.98 345.48 315.00 (40.36) (45.02)Ground handling and services to air carriers 10,329.50 9,050.27 7,419.76 6,903.54 2,909.74 2,146.73Sales on board 101.65 113.78 7.31 54.10 94.34 59.68Agent distribution services 21.06 253.96 3.34 30.72 17.72 223.24Total 15,189.84 13,881.31 11,105.08 10,418.34 4,084.76 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)


2000 1999 2000 1999Revenue from insurance compensation 25.92 414.06 25.92 414.06Gains on sales of assets 766.11 2,459.73 766.11 2,459.73Revenue from investment 0.06 51.32 0.06 51.32Other incomes 303.22 866.64 303.22 866.64Total 1,095.31 3,791.75 1,095.31 3,791.75

3.17 Other Expenses (Unit : Million Baht)


2000 1999 2000 1999Bad and doubtful debts (10.48) 152.86 (10.48) 152.86Credit card fees 194.84 168.67 194.84 168.67Compensation to customers for damages 83.82 78.30 83.82 78.30Expenses for grounded aircraft 0.94 1.16 0.94 1.16Allowance for impairment in value of investment 133.00 - 133.00 -Other expenses 1,059.70 492.97 1,059.66 492.97Total 1,461.82 893.96 1,461.78 893.96

3.18 Lease AircraftThe 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 DepartmentIn 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 2,038.99million, consisting of flight per diem tax amounting to Baht 1,931.13 million, value added tax amounting to Baht 106.39 million and income taxamounting 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 toBaht 662.51 million and in the fiscal year 2001 (November 7, 2000) amounting to Baht 1,323.29 million. The Company recognized the taxes paidamounted to Baht 280.77 million as expenses in the fiscal year 1999 and adjusted the taxes paid amounted to Baht 1,636.77 million whichincurred before the fiscal year 1999 with its retained earnings at the beginning of the year 1999. The Company also recognizes approximate flightper diem tax estimated at Baht 194.28 million as an expense in this fiscal year.

54

3.20 RESULTS OF OPERATIONSThe 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 12,498.16Others 15,189.85 13,881.31 1,308.54

Total 121,459.65 107,652.95 13,806.70Operating Expenses

Traffic 95,577.56 80,442.04 15,135.52Others 11,105.08 10,418.34 686.74

Total 106,682.64 90,860.38 15,822.26Operating 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 57.29Share of net profit from associated companies 164.87 160.08 4.79Other 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 6,392.80 444.87Losses 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 EquivalentsCash and cash equivalents in statement of cash flows consist of :

(Unit : Million Baht)CONSOLIDATED THE COMPANY

2000 1999 2000 1999Cash and bank balances 9,450.17 4,899.94 9,358.89 4,884.51Short-term investments 4,115.27 5,029.88 3,978.04 4,897.14Total 13,565.44 9,929.82 13,336.93 9,781.65

55

3.22 Staff Pension FundThe 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 recognizedas income and expenses of the Company. The details are as follows :

(Unit : Million Baht)2000 1999

Cash and bank balances 83.81 56.09Short-term investments 3,031.76 2,201.66Fixed assets 0.07 0.05Other current assets 13.96 14.55

3,129.60 2,272.35Other current liabilities 14.26 18.16Pension fund 3,171.02 2,437.60

3,185.28 2,455.76As 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 ExchangeThe 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 AccountsThe 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 Liabilities3.25.1 The Company has contingent liabilities resulting from the following commitments:

(Unit : Million Baht)THE COMPANY

2000 1999Letters of guarantee issued by banks 7.93 4.62The company as defendant in

Labour dispute cases 8.56 8.59Damage claims cases 443.93 437.20

Cases relating to aircraft accident which are under the insurance company’s liabilitiesat Nepal in 1992 26.13 164.26at Surat Thani in 1998 114.16 -

Total 600.71 614.67

3.25.2 THAI’s plane crashed in Surat ThaniTHAI’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 amount-ing to Baht 413.39 million from the insurance company. The majority of these expenses is under the insurance company’s liabilities.

56

D e t a i l s o f S h a r e h o l d e r s a n d B o a r d o f D i r e c t o r s

Thai Airways International Public Company Limited, aviation transportation service andassociated 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 totalling16,000 million Baht

Shares Issued and Paid Up Share Capital : 1,400 million ordinary shares fully paid at14,000 million Baht

Ordinary Shareholders Portfolio of Thai Airways International Public Company Limited atSeptember 30, 2000

Amount of Shares Number of People % Total Shares %Held in One Portfolio Holding Each Portfolio

1-1,000 99,041 99.17 23,251,224 1.701,001-10,000 797 0.80 1,842,182 0.1310,001-1,000,000 34 0.03 1,012,900 0.071,000,000-plus 4 0.00 1,373,893,694 98.13

99,876 100.00 1,400,000,000 100.00

Thai citizens holding shares 98,358 98.48 1,346,413,352 96.17

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 Number of Shares Annual Welfare Fee (Baht)

Mr. Mahidol Chantrangkurn Chairman 100 150,000.00Mr. Suphachai Phisitvanich Vice Chairman 100 135,000.00ACM Sanan Tourtip Vice Chairman - 103,064.52ACM Tananit Niamtan Former Vice Chairman 100 31,935.48Mr. Nibhat Bhukkanasut Former Director 100 28,387.10Pol.Gen. Pracha Promnog Former Director 100 87,333.33Mr. Sirin Nimmanahaeminda Former Director - 28,387.10Mr. Sawatdiparp Kantatham Former Director - 21,290.32ACM Anek Phuasuwan Former Director 100 21,290.32ACM Nipon Sakornyen Director - 90,000.00Mr. Bundit Siripant Director 100 120,000.00Mr. wissanu Krea-ngam Director 100 120,000.00Mr. Sansern Wongcha-um Director - 120,000.00Mr. Suchart Traiprasit Director 100 120,000.00Mr. Sumet Tantivejkul Director 100 90,000.00ACM Terdsak Sujjaruk Director - 91,612.90Gen. Mongkon Ampornpisit Director - 68,709.68Mr. Poonsup Piya-anant Director - 91,612.90Mr. Wisudhi Srisuphan Director - 68,709.68Pol.Gen. Narongvich Thaitong Director - 16,209.68Mr. Thamnoon Wanglee Director and Secretary 1,000 120,000.00

57

List of Affiliated and Subsidiary Companies

Name and Address Percentage of Shareholding Type of Business

1. Royal Orchid Hotel (Thailand) Pub. Co., Ltd. 24.0% Hotel

2 Captain Bush Lane, Siphya Road,

Bangkok 10500, Thailand

2. Donmuang International Airport Hotel Co., Ltd. 40.0% Hotel

333 Chert Wudthakas Road, Don Muang,


3. Bangkok Aviation Fuel Services Pub. Co., Ltd. 30.7% Fuel Storages and

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

41/33 2 nd Floor, Montri Road,

Phuket 83000, Thailand

5. Thai Information Solutions Co., Ltd. 100.0% Information technology

89 Vibhavadi Rangsit Road, Ladyao, Chatuchak, services


6. Thai-Amadeus Southeast Asia Co., Ltd. 55.0% Distributor of computer

89 Vibhavadi Rangsit Road, Ladyao, services, flight reservation and

Chatuchak, Bangkok 10900, Thailand other travel-related services

58

ACM Terdsak SujjarukDirector

Chief of the Air Staff

Royal Thai Air Force

Mr. Bundit SiripantDirectorManager

Seni Pramoj Advocates

& Solicitors

ACM Nipon SakornyenDirector

Managing Director

Airports Authority of Thailand

Mr. Suchart TraiprasitDirector

Attorney-General

Office of the Attorney-General

Mr. Mahidol ChantrangkurnChairman

Permanent Secretary Ministry of

Transport and Communications

Mr. Suphachai PhisitvanichVice Chairman

Permanent Secretary Ministry

of Finance

ACM Sanan TourtipVice Chairman

Commander-in-Chief

Royal Thai Air Force

As at September 30, 2000Thai Airways International Public Company Limited

B o a r d o f D i r e c t o r s

59

Mr. Sansern Wongcha-umDirector

Secretary-General

National Economic and Social

Development Board

Mr. Sumet TantivejkulDirectorPresident

Pattana Thai Foundation

Mr. Thamnoon WangleeDirector and Secretary

President

Thai Airways International

Public Company Limited

Pol.Gen. NarongvichThaitongDirector

Deputy Commissioner-General(Special Crime Suppression)

Royal Thai Police

Mr. Poonsup Piya-anantDirector

Director The Bureau

of the Budget

Gen. Mongkon AmpornpisitDirector

Supreme Commander

Supreme Command Headquarters

Mr. Wissanu Krea-ngamDirector

Secretary-General to the Cabinet

The Secretariat of the Cabinet

Mr. Wisudhi SrisuphanDirector

Comptroller-General

The Comptroller General Dept.

60

Mr. Thamnoon Wanglee

President

LT.JG. Chusak Bhachaiyud

Executive Vice President

Technical Department

Mr. Bhisit Kuslasayanon


Customer Services Department

FLT.LT. Sa-ad Sobsatrasorn


Operations Department

Mr. Amnuay Chanya


Finance & Information Department

Mr. Prajak Jamrusmechoti


Commercial Department

Mr. Tasnai Sudasna Na Ayudhaya


Human Resources &

General Administration Department

Mr. Sittipong Thanitayawong

Senior vice President

Corporate Planning &

Government Relations Department

FLG.OFF. Chinawut Naressaenee

Senior Vice President

Standards &

Safety Assurance Department

Mr. Sutat Rattakunjara

Vice President

Product Development & Management

Department

Mr. Suthep Suebsantiwongse

Vice President

Revenue Planning and

Management Department

Mr. Chanchai Singtoroj

Vice President

Sales & Distribution Department

Mr. Veravat Chotiros

Vice President

Marketing Development &

Support Department

Mr. Charnchai Surassanant

Vice President

Ground Customer Services Department

Mr. Wichit Yuktadatta

Vice President

Inflight Customer Services Department

Mr. Kobchai Srivilas

Vice President

Line & Light Maintenance Department

WG.CDR. Supachai Limpisvasti

Vice President

Heavy Maintenance Department

SQN.LDR. Chamlong Poompuang

Vice President

Flight Operations Department

SQN.LDR. Pradith Vudhivate

Vice President

Aviation Personnel Development

Department

Mr. Kaweepan Raungpaka

Vice President

Corporate Finance Department

Mr. Kamol Thammanichanond

Vice President

Comptroller Department

Mr. Prasert Khlongwathanakith

Vice President

Subsidiaries & Investments Department

Mrs. Sangngun Pornpaiboonstid

Vice President

Corporate Planning Department

Mr. Voravudhi Bunyaketu

Vice President

Government Relations Department

Mrs. Chamarie Chitwattanagorn

Vice President

Human Resources Department

Mr. Apichart Danaivan

Vice President

General Administration Department

Mr. Tummasak Chutiwong

Vice President

Crisis Management &

Information Center Department

Mrs. Sumalee Nakorntap

Vice President

Special Project Department

Mr. Prasert Lipiwathana

Vice President


Overseeing Star Alliance

M.R. Supadis Diskul

Vice President


FLT.LT. Sukasem Nuangwang

Vice President


Mr. Suthin Sanguansat

Vice President


As at September 30, 2000Thai Airways International Public Company Limited

M a n a g e m e n t T e a m

61

T h a i O n - l i n e O f f i c e s

ATHENS,GREECEEL.VENIZELOU 32 TKT/RSVN : (30-1) 9692-020166 75 GLYFADA FAX : (30-1) 9602-68610671 ATHENS, GREECE e-mail : [email protected]

AUCKLAND, NEW ZEALAND22 FANSHA WE STREET, TKT/RSVN : (64-9) 377-3886KENSINGTON SWAN BUILDING, FAX : (64-9) 379-8597LEVEL 1, AUCKLAND, NEW ZEALAND e-mail : [email protected]

BANDAR SERI BEGAWAN, BRUNEI4th FLOOR, KOMPLEK JALAN SULTAN TKT/RSVN : (673-2) 242-991-351-55 JALAN SULTAN, FAX : (673-2) 242-871BANDAR SERI BEGAWAN e-mail : [email protected] DARUSSALAM BS 8811

BEIJING, PEOPLE’S REPUBLIC OF CHINABEIJING LUFTHANSA CENTER S 102 B TKT : (86-10) 6468-5752NO.50 LIANG MA QIAO ROAD RSVN : (86-10) 6460-8899CHAO YANG DISTRICT, BEIJING 100016 FAX : (86-10) 6460-6990PEOPLE’S REPUBLIC OF CHINA e-mail : [email protected]

BRISBANE, AUSTRALIALEVEL4, 145 EAGLE STREET TKT/RSVN : (07) 3215-4700BRISBANE, QUEENSLAND 4000 FAX : (07) 3215-4737AUSTRALIA e-mail : [email protected]

CALCUTTA, INDIA8th FLOOR, CRESCENT TOWER TEL : (91-33) 287-0276229 A.J.C. BOSE ROAD TKT/RSVN : (91-33) 280-1630-35CALCUTTA 700020, INDIA FAX : (91-33) 280-1640

COLOMBO, SRI LANKAHOTEL CEYLON INTERNATIONAL TKT/RSVN : (94-1) 331-16648 JANADHIPATHI MAWATHA FAX : (94-1) 438-895COLOMBO 1, SRI LANKA

COPENHAGEN, DENMARKRAADHUSPLADSEN 16 TKT/RSVN : (45-33) 750-120DK-1550, COPENHAGEN V FAX : (45-33) 750-180DENMARK e-mail : [email protected]

DANANG, SOCIAL REPUBLIC OF VIETNAMDANANG INTERNATIONAL AIRPORT TEL : (84-511) 656-060-061DANANG CITY, TKT/ RSVN : (84-511) 656-060-061SOCIAL REPUBLIC OF VIETNAM FAX : (84-511) 656-062

DELHI, INDIATHE AMERICAN PLAZA, TKT/RSVN : (011) 623-9988HOTEL PARKROYAL FAX : (011) 623-9149NEHRU PLACE, e-mail : [email protected] DELHI, INDIA

DENPASAR, INDONESIATHE GRAND BALI BEACH HOTEL TKT/RSVN : (62-361) 288-141J 1 HANG TUAH, SANUR FAX : (62-361) 288-063BALI, INDONESIA e-mail : [email protected]

DHAKA, BANGLADESHBSL COMPLEX, MINTO ROAD TKT/RSVN : (880-2) 831-4711-18DHAKA 1000, BANGLADESH FAX : (880-2) 832-2353

DUBAI, U.A.E.NO.1 BU HALEEBA PLAZA TKT/RSVN : (971-4) 268-1701MURAQQABAT ROAD DEIRA, FAX : (971-4) 266-5498P.O. BOX 13142, DUBAI, U.A.E.

FRANKFURT, GERMANYBOERSENPLATZ 13-15 TKT : (49-69) 9287-444660313 FRANKFURT RSVN : (49-69) 9287-4444GERMANY FAX : (49-69) 9287-4222

e-mail : [email protected]

FUKUOKA, JAPANHINODE BUILDING TKT/RSVN : (092) 734-64091-15-1 TENJIN, CHUO-KU FAX : (092) 734-9480FUKUOKA SHI, 810-0001 JAPAN e-mail : [email protected]

GUANGZHOU, PEOPLE’S REPUBLIC OF CHINATHE GARDEN HOTEL TKT/RSVN : (86-20) 8382-4333368 HUANSHI EAST ROAD, FAX : (86-20) 8382-3986GUANGZHOU 510064 e-mail : [email protected]’S REPUBLIC OF CHINA

HANOI, VIETNAM44 B L Y THUONG KIET STREET TKT/RSVN : (84-4) 826-7921-22HANOI, FAX : (84-4) 826-7394SOCIAL REPUBLIC OF VIETNAM e-mail : [email protected]

HO CHI MINH CITY, VIETNAM65 NGUYEN DU STREET, DISTRICT 1 TKT/RSVN : (84-8) 829-2809-10HO CHI MINH CITY, FAX : (84-8) 822-3465SOCIAL REPUBLIC OF VIETNAM e-mail : [email protected]

HONG KONGMANAGEMENT&ACCOUNTS : TKT : (852) 2876-689915-B FLOOR, FAX : (852) 2735-8551SALES, TKTG & RSVN :24-A FLOORUNITED CENTRE, QUEENSWAYS, RSVN : (852) 2876-6888HONG KONG FAX : (852) 2865-6037


JAKARTA, INDONESIAGROUND FLOOR, BDN BUILDING TKT : (62-21) 230-2551JL. M.H. THAMRIN NO.5 RSVN : (62-21) 230-2552JAKARTA 10340, INDONESIA FAX : (62-21) 330-792


KAOHSIUNG, TAIWAN9TH FLOOR, NO.282, TKT/RSVN : (07) 215-5871CHUNG-HUA 4th ROAD FAX : (07) 251-4081KAOHSIUNG, TAIWAN, R.O.C. e-mail : thaikhh@ms23,hinet.net

KARACHI, PAKISTANHOTEL METROPOLE, CLUB ROAD TKT/RSVN : (92-21) 566-0156/58/59KARACHI, PAKISTAN FAX : (92-21) 568-1513


KATHMANDU, NEPALANNA PURNA ARCADE TKT : (977-1) 221-247DURBAR MARG, KATHMANDU, NEPAL RSVN : (977-1) 223-565

FAX : (977-1) 225-084

KUALA LUMPUR, MALAYSIA30th FLOOR, WISMA GOLDHILL, TKT/RSVN : (60-3) 201-1913JALAN RAJA CHULAN RSVN : (60-3) 201-290050200 KUALA LUMPUR, MALAYSIA FAX : (60-3) 202-5805

KUNMING, PEOPLE’S REPUBLIC OF CHINAKING WORLD HOTEL TKT/RSVN : (86-871) 313-331598 BEIJING ROAD, KUNMING 650011 RSVN : (86-871) 313-3139PEOPLE’S REPUBLIC OF CHINA FAX : (86-871) 316-7351

LONDON, UNITED KINGDOM41 ALBERMARLE STREET TKT : (44-20) 7491-7953LONDON, W1X 4LE FAX : (44-20) 7409-1463UNITED KINGDOM e-mail : [email protected]

LOS ANGELES, U.S.A.222 NORTH SEPULVEDA BLVD. TKT : (1-310) 640-0097EL SEGUNDO, CA 90245, U.S.A. ext. 344

RSVN : (1-800) 426-5204FAX : (1-310) 322-8728

MADRID, SPAINPRINCIPE DE VERGARA 185 TKT : (34-91) 782-0523-2428002 MADRID, RSVN : (34-91) 782-0521-22SPAIN FAX : (34-91) 564-5620


MANILA, PHILIPPINESCOUNTRY SPACE 1 BUILDING TKT : (63-2) 812-4812SEN GIL PUYAT AVENUE FAX : (63-2) 893-5891MAKATI CITY, PHILIPPINES RSVN : (63-2) 812-4744

FAX : (63-2) 817-4044e-mail : [email protected]

MELBOURNE, AUSTRALIA250 COLLINS STREET TKT/RSVN : (03) 8662-2266MELBOURNE, VICTORIA 3000, FAX : (03) 9650-7003AUSTRALIA e-mail : [email protected]

MUNICH, GERMANYMODULE B, ROOM B4355A SW : (089) 975-9467285356 MUNICH AIRPORT, GERMANY TKT/RSVN : (089) 975-94670-71

FAX : (089) 975-94676

NAGOYA, JAPANSOUTH HOUSE 9F TKT/RSVN : (88-52) 963-85856-29 NISHIKI 3-CHOME FAX : (88-52) 963-8584NAKA-KU, NAGOYA 460-0003, JAPAN e-mail : [email protected]

OSAKA, JAPANSUMITOMO SEIMEI TKT : (06) 6202-5470YODOYABASHI BUILDING FAX : (06) 6202-56464-1-21 KITAHAMA RSVN : (06) 6202-5161CHOU-KU, OSAKA 541-0041, JAPAN FAX : (06) 6202-5453


PARIS, FRANCE23 AVENUE DES CHAMPS ELYSEES TKT : (33-1) 4420-707075008 PARIS, FRANCE FAX : (33-1) 4420-7049

RSVN : (33-1) 4420-7080FAX : (33-1) 4420-7037e-mail : [email protected]

PENANG, MALAYSIAWISMA CENTRAL TKT : (007-604) 226-700041 JALAN MACALISTER RSVN : (007-604) 226-600010400 PENANG, MALAYSIA FAX : (007-604) 226-9000


PERTH, AUSTRALIALEVEL 30, QV1 BUILDING TKT/RSVN : (61-8) 9322-5088250 ST GEORGE’S TERRACE FAX : (61-8) 9322-5039PERTH, WA 6000, AUSTRALIA

PHNOM PENH, CAMBODIA19 STREET 106, SANGKAT WAT PHNOM TKT : (855-23) 722-475KHAN DAUNPENH, PHNOM PENH RSVN : (855-23) 722-472KINGDOM OF CAMBODIA FAX : (855-23) 427-211

e-mail : [email protected], ITALY50 VIA BARBERINI TKT : (06) 4781-332900187 ROME, ITALY RSVN : (06) 4781-3304

FAX : (06) 474-6449e-mail : [email protected]

SEOUL, KOREA16th FLOOR, TKT : (02) 3707-0033ORIENTAL CHEMICAL BUILDING FAX : (02) 3707-005550 SOKONG-DONG, CHUNG-KU RSVN : (02) 3707-0011SEOUL, 100-718 KOREA FAX : (02) 755-5251


SHANGHAI, PEOPLE’S REPUBLIC OF CHINAHOTEL EQUATORIAL TKT : (86-21) 6279-717565 YANAN ROAD, SHANGHAI 200040 FAX : (86-21) 6279-7179PEOPLE’S REPUBLIC OF CHINA RSVN : (86-21) 6248-7766

FAX : (86-21) 6248-8144

SINGAPORE100 CECIL STREET TKT : (65) 224-2024# 03-00 THE GLOBE RSVN : (65) 224-9977SINGAPORE 069532 FAX : (65) 223-9005


STOCKHOLM, SWEDENKUNGSGATAN 66, S-111 81 TKT/RSVN : (08) 598-83600STOCKHOLM, SWEDEN FAX : (08) 598-83690


SYDNEY, AUSTRALIA75-77 PITT STREET, SYDNEY TKT : (61-2) 9844-0929NEW SOUTH WALES 2000, AUSTRALIA FAX : (61-2) 9844-0936

RSVN : (61-2) 9844-0999FAX : (61-2) 9251-1106

TAIPEI, TAIWANNO.96, CHIEN KUO NORTH ROAD, TKT : (886-2) 2509-6899SEC.1 ext.711TAIPEI, TAIWAN FAX : (886-2) 2509-2931

RSVN : (886-2) 2509-6800FAX : (886-2) 2508-4910e-mail : [email protected]

TOKYO, JAPAN1-5-1, YURAKUCHO, CHIYODA-KU TKT/RSVN : (81-3) 3503-3311TOKYO 100-0006, JAPAN FAX : (81-3) 3503-3323


VIENTIANE, LAOSM&N BUILDING, (AREA CODE) : (007-856-21)ROOM NO. 70/101-103 TKT/RSVN : 222-527-9LUANGPRABANG ROAD, FAX : 216-143KHOUNTA THONG, VIENTIANE, e-mail : [email protected] PEOPLE’S DEMOCRATIC REPUBLIC

YANGON, UNION OF MYANMAR1101 SAKURA TOWER TKT : (95-1) 255-116339 BOGYOKE AUNG SAN STREET RSVN : (95-1) 255-491-9KYAUKTADA 11182, YANGON, FAX : (95-1) 255-490MYANMAR

ZURICH, SWITZERLANDBAHNHOF STRASSE 67 TKT/RSVN : (41-1) 215-65008001 ZURICH, SWITZERLAND FAX : (41-1) 212-3408


BANGKOK, THAILANDHEAD OFFICE89 VIBHAVADI RANGSIT ROAD TEL : 545-1681-6,545-3685-9BANGKOK 10900 FAX : 545-3832

SILOM OFFICE485 SILOM ROAD TEL : 234-3100,232-8000BANGKOK 10500 FAX : 233-1465,237-4114

LARN LUANG OFFICE6 LARN LUANG ROAD TKT : 280-0100-110BANGKOK 10110 FAX : 280-1748

RSVN : 628-2000, 280-0060FAX : 628-2486, 280-0735

ASIA HOTEL OFFICE296 PHAYATHAI ROAD TEL : 215-2020-4BANGKOK 10400 FAX : 215-2021

YAOWARAJ OFFICEROOM NBR.310-311, 3RD FLOOR TEL : 223-9746-48GRAND CHINA BUILDING FAX : 223-9750215 YAOWARAJ ROADBANGKOK 10100

CHIANG MAI, THAILAND240 PRAPOKKLAO ROAD, TEL : (053) 210-210AMPHUR MUANG FAX : (053) 210-041CHIANG MAI 50200, THAILAND RSVN : (053) 211-044-7

FAX : (053) 210-042

CHIANG RAI, THAILAND870 PHAHOLYOTHIN ROAD, TEL : (053) 740-309CHIANGRAI 57000, THAILAND FAX : (053) 713-663

PHITSANULOK, THAILAND209/26-28 BOROMTRILOKNART ROAD TEL : (055) 258-020PHITSANULOK 65000, THAILAND FAX : (055) 251-671

HAT YAI, THAILAND190/6 NIPAT UTHIT ROAD, TKT : (074) 230-445-6HAT YAI, SONGKHLA 90110, THAILAND RSVN : (074) 233-433

FAX : (074) 232-392

PHUKET, THAILAND78 RANONG ROAD, TKT : (076) 212-400AMPHUR MUANG FAX : (076) 258-233PHUKET 83000, THAILAND RSVN : (076) 211-195

FAX : (076) 216-776

KRABI, THAILAND1 TUNG FAH ROAD, AMPHUR MUANG TEL : (075) 622-440-2KRABI 8100, THAILAND FAX : (075) 622-443

PATTAYA, THAILANDDUSIT RESORT PATTAYA HOTEL TEL : (038) 420-994-97240/2 MOO 5, PATTAYA BEACH ROAD RSVN : (038) 420-998CHOLBURI 20150, THAILAND

KHONKAEN, THAILANDSOFITEL RAJA ORCHID KHONKAEN HOTEL TEL : (043) 227-701-059/9 PRACHASUMRAN ROAD, FAX : (043) 227-708AUPHUR MUANG, KHONKAEN 40000, THAILAND

UBON RATCHATHANI, THAILAND364 CHAYANGGOOL ROAD, TEL : (045) 313-340-2AMPHUR MUANG FAX : (045) 313-344UBON RATCHATHANI 34000, THAILAND

Documents

THAI : Annual Report 2000