Mr. Ekniti Nitithanprapas

Chairman

Mr. Sumeth Damrongchaitham

President

In 2019, Thai Airways International Public Company Limited has conducted its 59th anniversary amid different situation from 2018. We, unavoidably have encountered various factors that negatively impacted the Thai aviation and tourism industry. For instance, the world economy grew at the poorest rate in the past 10 years, the trade war between the United States and China, natural disasters, oil price fluctuations and the strongest Baht recorded in the past 6 years as well as aggressive pricing competition action in the aviation industry.

Accordingly, the Board of Directors and Management carried out to follow the 10-year long-term strategic framework (2017 - 2026) which in conformity to the state enterprise strategic plan and government policy, consisting of 5 strategies as follows:

  1. Increase profit from aggressive marketing and cost competitiveness (Aggressive Profit) to create maximum profits continuously by managing revenue from the air transport ancillary revenue, costs, fleets and aviation network effectively.
  2. Develop and seek for opportunities of the business portfolio to derive highest benefit from asset management, creating advantages in competition which contributed by internal coordination of airline business and allies. Develop existing and new business or enter into a joint venture in potential business.
  3. Create impressive customer experience to enable all seamless services that perfectly fit to each customer group an bringing the best satisfaction.
  4. Apply innovation and digital technology to develop contemporary architectural structures, creating competitive advantages. Having modern technology systems that increase operational efficiency along with trimming the costs.
  5. Effective Human Capital Management Strategies allows concise and flexible organizational structure, while employees are engaged with the organization, feeling ownership and taking part in business operation. Employees will receive knowledge and skills development that is consistent to their responsibility to enhance their performance and expertise.

Regardless of the obstacles laying ahead, we anticipate to face and strive through. The time will proof our intension and more importantly, the support from all shareholders which is the key factor that prompts us to conquer all tests and vigorously progress to the future with the glory and jointly with all Thai citizens. Please trust and show us an encouragement to empower us carrying on the THAI Airways that rises in Thai sky forever.

In 2019, the environment, society and governance (ESG) has emphasized the importance of developing good corporate governance of THAI, together with promoting corporate governance to enable understanding good corporate governance adhering to ethical management and morality when performing their duties. For this year, the Company arranged the CG Day 2019 with participation from the Board of Directors, executives and employees of THAI has mutually signed their declaration to join the Collective Action Coalition Against Corruption – CAC.

Finally, on behalf of the Board of Directors, I believe that fullest commitment and performance of the Management, executives and all employees illustrates the potentials and the spirit of the people in all sections designated to serve. Whether the ground or in-flight crews, all will speed up the reformation plan toward the target and gain the pride of THAI for the Thai nationals as always.

Regardless of the obstacles laying ahead, we anticipate to face and strive through. The time will proof our intension and more importantly, the support from all shareholders which is the key factor that prompts us to conquer all tests and vigorously progress to the future with the glory and jointly with all Thai citizens.

Please trust and show us an encouragement to empower us carrying on the THAI Airways that rises in Thai sky forever.

The 2020 will be the year that THAI celebrates its 60th anniversary. Thai Airways will strive to escalate and is committed to building up our dignity as a national airline gracefully and sustainably. THAI has faced through these years upturns and downturns, but the important thing that rescue us has always been the power of cooperation of the THAI employees, encouragement from shareholders and all stakeholders

In 2019, Thai Airways International PCL (THAI) has continued business operation following strategic plan with an endeavor to become the National Premium Airline, by raising many of our strategies to boost up revenue and cutback the costs. For instance, planning for new potential flight routes, reducing fuel costs and increasing the frequency of the routes with likely more passengers, such as Paris, Brussels, Vienna and Rome. This included marking a new route to Sendai, Japan. THAI have improved work procedures to reduce costs, adjust personnel welfare and compensations, deferred unnecessary investment projects while maintaining service and safety at the world standard level to deliver valuable outputs and remarkable experience to customers.

Despite following strategic plan with a firm determination, operating result of THAI and subsidiary companies in 2019 did not meet the target set forth because of the unfavorable impact of the global economic downturn, political strains that stretched in many regions, diminishing international trade relations. For instance, the stability of the Eurozone government, the conflict between India and Pakistan, and protests in Hong Kong which all posed concerns to the entire global economy and finances. In addition, the strong Thai Baht when linked to major trade partners has a disadvantageous effect on the export and tourism sector in Thailand. According to the statistics from the International Air Transport Association (IATA), the number of passengers and transportation in 2019 has dropped when matched to that of the previous year, marking the first year of reduction since global financial crisis in where the passenger demand is lower than the long-term growth trend. Eventually, between 2018-2019, many airlines experienced loss. On the other hand, the low-cost airlines in Thailand continued expanding to international field as a result of saturation of the domestic market (it is also another aspect that had affect THAI’s revenue). However, thanks to the determination and motivation of the employees in all sectors, THAI garnered acclaim from Skytrax, the world excellent airline which included Best Airline Lounge Spa for fifth consecutive years, and

Best Airline Staff in Asia. In addition, we were ranked among the World’s Top 10 Airlines of 2019. For 10 consecutive years, THAI acclaimed TTG Travel Hall of Fame by TTG Travel, and the Best South-East Asian Airline for 4 consecutive years, Asia Pacific Airline of the year 2019 -2020. Another grand award we gained was from Trip Advisor – the Best Airline in Thailand and Travelers’ Choice Regional Airlines in Asia for 3 subsequent years.

With the principle that the good governance is a vital medium contributing to THAI’s sustainable growth, the Board of Directors added their support and promoted CG Day 2019 activities in which the Board of Directors, Executives and employees jointly signed a declaration of intention to join the Collective Action Coalition Against Corruption (CAC) project. THAI also carried out the project “Thai Airways Moral” to become an organization of righteousness together with enhancing our personnel to have principle and ethics, which would reinforce effective management of business, enhancing competitiveness to accomplish a sustainable growth. As a result of our devotion and commitment, THAI being evaluated under Corporate Governance Report of Thai Listed Companies 2019, at “Excellent” degree and awarded a “Five Star” from the National Corporate Governance Commission.

The 2020 will be the year that THAI celebrates its 60th anniversary. Thai Airways will strive to escalate and is committed to building up our dignity as a national airline gracefully and sustainably. On behalf of the Management and employees, we would like to affirm our sincere gratitude to shareholders and all stakeholders for your continuing support to our operations which is spanning to the past six decades. THAI has faced through these years upturns and downturns, but the important thing that rescue us has always been the power of cooperation of the THAI employees, encouragement from shareholders and all stakeholders - these create prevailing power to lead THAI to overcome all challenges and keep going toward the future with grace together with all Thai citizens