Bangkok--25 Jun--Thai Airways International Today (25 June 2007) at the Head Office of Thai Airways International Public Company Limited, Flg. Off. Apinan Sumanaseni, THAI’s President, presided over a press conference concerning the order of 8 Airbus A330-300 aircraft, wine purchasing, and travel kits for passenger use on board flights. Flg. Off. Apinan Sumanaseni said that during the Thai Cabinet meeting on 19 June 2007, a resolution was passed for the company to acquire 8 Airbus A330-300 aircraft, based on THAI’s plan that was proposed, based on an operating lease to replace 6 aging aircraft under the type Airbus A300-600 and 2 Boeing 747-300 with a utilization age of approximately 20 years. Currently, the company has an operating lease for 12 aircraft in its fleet. Acquisition of aircraft through an operating lease will be beneficial to the company due to flexibility and decrease debts incurred, as the company will not be committed to purchase upon the end of the operating lease agreement, due to future advancement in aircraft production technology advancement and more modern aircraft produced when compared to current aircraft types in the fleet. The company is able to seek new aircraft types for replacement, which allows added flexibility in adjusting aircraft types in the fleet as deemed appropriate for the company’s needs in the future. Acquiring aircraft will positively benefit the company, as suitable aircraft will be sought to enter the fleet, specifying the number of passenger seats in Business Class and Economy Class, including equipment that makes passenger travel more convenient. As for wine selection and purchasing for inflight service during year 2006 in the company’s First Class, Business Class, and Economy Class, the company’s wine selection committee chose wine that various companies sold in large amounts and there were some wine selected for taste at 23 items. As well, the committee considered the price of wine that was selected based on taste. The company made a check on the wine prices at 23 items. It was concluded that 10 items were priced appropriately and lower than market price, whereby the company approved for the purchase order. As for the remaining wine at13 items, it was discovered that the price was irregular or higher than market price, thereby the company set up a central committee to audit the prices, for transparency and fairness. The committee concerned investigated wine prices at sales and production locations in France, including a check on prices on the Internet. It was discovered that winders at 4 out of 13 items had suitable prices, which the company approved of the purchase and issued purchase order. As for the other 9 items (from 13 items), prices were irregular, whereby the dealer considered adjustment to a new appropriate price. However, the price proposed to the company remained higher than the market price. Based on the company’s consideration, it was decided that there was incorrect and unsuitable prices, whereby purchase orders were cancelled for wine at 9 items. In order for the company to have sufficient amount of wine to serve, the company went ahead and purchased wine for the items that were selected and purchased wine with similar quality from producers or production dealers directly, instead of purchasing with wine dealers that bid to sell wine at 9 items. Nevertheless, in terms of wine purchasing, the company conducting an investigation and should it be found that any incorrect action was taken, disciplinary and legal action will be taken. Regarding complaints concerning purchase of travel kits, the company has discontinued ordering travel kits from 1 dealer. The company had a purchase order for travel kits for passengers in First Class and Business Class from this particular dealer, which was unable to provide a sample of the travel kit, which the company had ordered for the committee to inspect for product acceptance. The dealer requested to delay the date to deliver the product throughout this period, whereby the company sent letters to the dealer concerning this matter. Therefore, the company had to cancel the purchase order based on the contract agreement and regulations of the company. Based on the contract, the dealer’s inability to deliver the product to the company causes loss to the company because it results in there being no travel kits to provide to passengers, who have made complaints about no travel kits being available. THAI continuously attempted to follow-up and clarify this matter with the dealer, which created difficulty for the company once there was no product delivered based on the purchase order. Eventually, the company had to cancel the purchase order of travel kits for 2 items in First Class and Business Class and called the dealer concerned to pick up the returned insured agreement accordingly.