Acting President of Thai Airways Says Business Situation Improving.

Dec. 11--The number of industries pleading for state support because of the economic downturn after the Sept 11 events seems endless.

While the link between the Afghan conflict and rice farmers and textile manufacturers might seem tenuous, one industry has been hit hard.

Virabongsa Ramangkura, the chairman and acting president of Thai Airways International, drew on a cigarette and said: "When I came here, there was a global crisis in aviation. Sept 11 led to a sharp decline in traffic. The prime minister was worried, the cabinet was worried, about the impact on THAI as a national asset."

Dr Virabongsa, an economist and a former deputy premier, had been advising the ruling Thai Rak Thai Party on economic policy when he was tapped as THAI chairman in early October.

The mandate? Clean up a national carrier shaken by management infighting and board conflicts, stabilise operations and implement a strategic vision aimed at boosting shareholder value.

"Things have improved for us in the past few weeks. We are building on our strengths as a `safe' airline, our friendliness and attractiveness," he said.

November revenue was around eight billion baht, just off the typical monthly average of about 10 billion. Flights to Europe and Australia were running at full capacity, although regional traffic remained sluggish.