May 17, 2012 Dear Colleagues, THAI Smile will begin operations very quickly, in about 6 weeks on 07 July 2012 with double daily service between Bangkok and Macau, the newest destination on the THAI network. Marketing and sales of THAI Smile is within Commercial and under the responsibility of DN. The following is a complete briefing on THAI Smile, brand positioning and how we in Commercial will support this new service by THAI. Background Rationale: THAI Smile is a new service offered by THAI. It is not a separate entity but does have its own operations management team headed by the Managing Director, BKKXLTG. The THAI Smile fleet will be comprised of 11 new A320 aircraft with an all Economy Class configuration. These fuel efficient planes will be deployed on domestic routes and international routes within 3 hours flying time of Bangkok. The configuration and capacity of the aircraft will better meet demand on specific routes and produce improved operational efficiencies. THAI Smile has dedicated cockpit and cabin crews that have been recruited through THAI’s Wingspan, a subsidiary for contracted employees with THAI. With this contracted hiring process significant cost efficiencies are gained. Combined with cost effective aircraft operations, THAI Smile has been designed to operate as efficiently as possible on domestic routes and short-haul regional routes. Brand Positioning: Again THAI Smile is a new service by THAI. It will not compete directly with low cost carriers on pricing, but rather will compliment THAI’s full premium service with a similar dedication to service excellence and adapted to the requirements of short haul flights; swift, efficient and friendly. Cabin crew have been recruited to reflect these service requirements, being young, engaging, with good language skills and an enthusiasm to work in the airline industry and directly with customers. Ground and Inflight Services: THAI Smile flights will operate under the TG airline code with 3 digit flight codes beginning with 7. THAI will handle all ground service support for THAI Smile flights, check-in, baggage handling and catering. On a THAI Smile flights a snack and beverage will be provided at no charge to passengers. A selection of light meals, snacks and beverages will be available for purchase. Page 1 of 2 Pricing and Sales: While THAI Smile will have a dedicated website at www.thaismileair.com the booking engine utilized will that of THAI’s. Website sales are required to be a significant sales source from the first day of operations. The same Economy Class booking class hierarchy will be used to maximize yields. With operational cost efficiencies firmly in place, there may be more flexibility in the range of fares offered, particularly on short international routes where there is more competition. Flight Schedule: With 4 aircraft entering the THAI Smile fleet by September, domestic services will commence as follows: • • • Commencing 16 August 2012 2 Daily service between Bangkok and Surat Thani 4 flights daily between Bangkok and Krabi 1 Daily service between Bangkok and Chiang Mai • • • Commencing 16 September 2012 1 additional daily service between Bangkok and Chiang Mai 1 Daily non-stop service between Chiang Mai and Phuket 1 Daily service between Bangkok and Phuket The THAI Smile flight schedule is available at THAISphere under DV. Fares are now loaded for Bangkok-Macau service on the website and in GDS, as of today advance bookings are at only 40-50%. Fares for domestic services in all booking channels will be loaded within Friday 18 May 2012. DN has been tasked with full commercial responsibility for THAI Smile. Your full awareness and support of this new service by THAI is essential, and I am confident that all within Commercial will give THAI Smile the same focus given to THAI. With this commitment, sales and marketing of THAI Smile will be successful from day one on 07 July, and as services expand over the coming months. Best regards, Pandit Chanapai Page 2 of 2