Shares Surge 10 Percent after Thai Airways Purge.

Sep. 7--Investors hailed yesterday's sweeping board reshuffle at Thai Airways International as a signal of firm political will to reorganise the struggling national carrier.

Shares of THAI on the Stock Exchange of Thailand rose nearly 10 percent on news of the changes, and closed at 31 baht, up 2.75, in turnover worth 196.64 million.

THAI's 15 directors resigned en masse yesterday at an emergency board meeting called by Prime Minister Thaksin Shinawatra after hoax bomb threats forced flight cancellations earlier this week.

The carrier has been rocked over the past few months by an internal dispute between the union and pilots, infighting among board directors and management and conflicts with Pracha Maleenond, the deputy transport minister overseeing THAI.

President Bhisit Kuslasayanon was shunted to an advisory role. Somchainuk Engtrakul, permanent secretary for Finance and the THAI vice-chairman, named acting president. Transport Minister Wan Muhamad Nor Matha was also named to oversee the airline in place of Mr Pracha.

THAI announced to the SET that the current board would continue to serve until new directors were appointed. An extraordinary shareholders' meeting to appoint replacements will be held on Oct 5.

Pressure on THAI to restructure its operations has been building for months, as the government has committed itself to completing a new share issue as part of a privatisation plan by the end of the year.