THAI Board of Directors Meeting Results

1. Operating Results for March 2013

The THAI Board of Directors acknowledged the Company's good operating performance for March 2013 where THAI carried 2.0 million passengers, increased from 1.79 million or 11.7 percent compared to February 2013 and 13.6 percent increase in passengers carried compared to March 2012.

The Company's Revenue Passenger-Kilometer (RPK) and Available Seat-Kilometer (ASK) increased 10.8 and 8.2 percent, respectively, resulting in an average Cabin Factor of 80.3 percent, which was higher than the same month last year at an average of 78.4 percent. Cabin Factor on regional routes increased from 76.3 percent to 81.9 percent, and on domestic routes increased from 77.8 percent to 79.2 percent. THAI Smile business unit's overall cabin factor averaged 83.3 percent, with Cabin Factor on international routes at 86.8 percent and on domestic routes was 82.1 percent.

The Company's Cargo and Commercial Mail operations reported Revenue Freight Ton-Kilometer (RFTK) and Available Dead Ton-Kilometers (ADTK) up from the same month last year by 3.4 percent and 12.3 percent, respectively even though effected by the world economic slowdown. Freight Load Factor averaged at 55.2 percent, which was 7.7 percent lower than the same month last year.

For the period from January to March 2013, the Company's cabin factor averaged a high of 79.8. Available Seat-Kilometer (ASK) was 5.5 percent higher than the same period last year and Revenue Passenger-Kilometer (RPK) was 7.7 percent higher than the same period last year. Nevertheless, cargo and commercial mail operations reported Revenue Freight Ton-Kilometer (RFTK) was at 1.2 percent lower than the same period last year and Available Dead Ton-Kilometers (ADTK) was at 5.2 percent higher than the same period last year. This resulted in freight load factor at an average of 51.1 percent, which was 6.1 percent lower than the same month last year.

2. Review of 2012 Company Credit Rating

TRIS Rating affirms the company and senior debenture ratings of Thai Airways International (THAI) at "A+", with a "stable" outlook. The ratings reflect THAI's leading position in international air routes of Thailand , plus the benefits from being a member of Star Alliance, the largest airline alliance in the world.

In addition, the Company should be able to maintain its current operating performance level although the Company is making huge investments. However, this strength could be partially offset by several risk factors such as having a relatively high debt burden, fuel price volatility, foreign exchange risk, and unforeseen events, e.g., epidemics, natural disasters, and political unrest. Other risk factors also include intense competition from both premium airlines and low-cost carriers.

The credit rating reflects the Company's solid credit profile as a state enterprise and national carrier with support from the government. The Ministry of Finance (MOF) remains the major shareholder with a 51% shareholding while the Government Savings Bank (GSB) holds 2.1% of THAI's shares. THAI's shares of 15.5% held by the Vayupak Fund are considered as a private investment, although the Vayupak Fund was established by the MOF. Therefore, the ratings will be lowered if the government shareholding falls below 50%.

3. Establishment of THAI Smile Airways Subsidiary

THAI Board of Directors acknowledge d the progress on the establishment of the Thai Airways International subsidiary, THAI Smile Airways. THAI has sent the proposal to the Office of the Permanent Secretary of the Ministry of Transport and to relevant government offices such as the State Enterprise Policy Office (SEPO), the Office of Transport and Traffic Policy and Planning (under the Ministry of Transport), and the Office of the National Economics and Social Development Board (NESDB) for their consideration. When the Ministry of Transport approves THAI's proposal, the Office of the Ministry of Transport will forward the proposal to the Office of the Secretariat for the Cabinet to be included in the agenda of the next cabinet meeting.