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Expenses

In 2013 to 2014 the Fuel and Oil Expense was decreasing about 1.6% or million THB to 1.29 billion .The
reason of decreasing due to Thai Airway decide to cancel in some flight or non-profit routes. Moreover,
depreciating THB against USD. Importantly, the main factor of expense that is oil price in global marketing
continue drop, it makes Thai Airways can operate expense eectively. So, that is the other reason that
expense are continue deduct till year 2015.

The main expense of Thai Airway is Fuel and Oil Expense that show in the highest number in every year
because fuel and oil is an important factor to run their business.

In 2013-2015 there are many factors that decrease during the year are Employee benefits Expense, Flight
service expenses and Crew expenses. In part of Employee benefits Expense state at the second rang of
highest expense due to the news that Thai Airway are pay overtime to their employee higher that the
expected in year 2013 at 33,108 million THB. After that the employee benefit are decreasing respectively by
1.9% in year 2014 to 2015or 595 million.The reason came from voluntary layo and early retire sta in 2013.
Thai Airways were criticized very heavy about this.it decrease but not enough. In 2014 the company also
decide to retired sta and employee with health issue participation in Mutual Separation Plan (MSP).THAI
also provide the MSP plan for general employee and Golden Handshake scheme for flight attendants to
manage man power base upon THAIs transformation plan. The group of participants joining these programs
this year totaled 1,277 stas.

In part of flight related expense consisted of flight service expense, crew expense, and inventory and supply
were decrease from 2014 to 2015 by 1.15 billion THB that decrease around 5.32%. The reason for dropping
is the strengthen value of Baht compared to EURO, Japanese Yen, and Australian dollar as well as the cost
reduction policy. It makes expense of flight that will occur reducing such as flight service.

Maintenance and overhaul in2013 t0 2014 was increasing from 13,446 million THB to 14,684 million THB
totally around 9.19%. This is because in aircraft return condition provision under aircraft lease agreement
and engine restoration maintenance reserve expense under maintenance revenue clause of aircraft lease
agreements.

Depreciation and amortization have decline around 6.83% between 2014 and 2015. This is because some
aircraft have fully depreciated. Moreover, there are decommissioning 6 Airbus aircraft, which still had useful
life.

Lease of aircraft and spare part have increasing by 35.75%. This is because increasing of 11 operating lease
aircraft including 6 Boeing.

For Profit (loss) for the year from the table it show that the company loss in every year. Especially, in year
2015 the loss was decrease 16.21%but between 2014 and 2013 their loss was rise around 29.77% or 3.57
billion, the main reason came from the revolution of government that make the foreigner do not want to
travel in Thailand and also aect the amount in impairment loss. Even though the oil price around the world
are decrease and the company tries to reduce their expense but the amount still high due to the company
lease the new aircraft then revenue cannot cover their cost.