1. Introduction Thai Airways International (abbreviation THAI) is the international and national carrier of Thailand. It has regional, domestic and intercontinental flights from its headquarters in Bangkok to different major destinations within Thailand and around the world. Actually, it was established in 1960 as a joint venture company between SAS (Scandinavian Airlines Systems) and TAC (Thai Airways Company), Thailand's domestic carrier. After it had capital participation partnership with the SAS for 17 years, Thai government decided to buy out SAS holding. Thai Airways International was Star Alliance's member in 1997 and merge with a domestic airline TAC in 1998. Besides, Thailand was liberated from other nations' domination, then changed the name of the country from Siam to Thailand (Thai stands for freedom and Thailand means "Land of the freedom ) in 1238 therefore the company's name means the national airline of Thailand's Kingdom in either Thai or English (Frynas and Mellahi 2011). The purpose of this report is to analyze Thai Airways International, including external and internal environments, business strategy, financial performance, strategic options and recommendations for change. 2. External Environment Analysis 2.1. PESTEL Analysis 2.1.1. Political   Political factors are how and to what degree does THAI airways intervenes in the economy. Specifically, political factors include areas such as tax policy, labour law, environmental law, trade restrictions, tariffs, and political stability by THAI airways Recently THAI airways stated that the growing economy will boost travel and passengers if Thailand has no political problems. 2.1.2. Economic   Economic factors include economic growth, interest rates, exchange rates and the inflation rate of THAI airways. These factors have major impacts on how businesses operate and make decisions. For example, interest rates affect THAI's cost of capital and therefore to what extent does passengers grows and expands 2.1.3. Social   Social factors include the cultural aspects and include health consciousness of the employees and staff of THAI airways besides, population growth rate, age distribution, career attitudes and emphasis on safety of the airline whether on ground or in air. 2.1.4. Technological   Technological factors include technological aspects such as R&D activity, automation, technology incentives and the rate of technological change in the latest trend of the airline industry. They can determine barriers to entry, minimum efficient production level and influence outsourcing decisions. 2.1.5. Environmental   Environmental factors include ecological and environmental aspects such as weather, climate, and climate change, which may especially affect industries such as tourism, and also affect flights in delaying or cancelation due to bad weather. 2.1.6. Legal   Legal factors include discrimination law, consumer law, antitrust law, employment law, and health and safety law. These factors can affect how accompany operates, its costs, and the demand for its products. Such as bad service of THAI airways may lead to people choosing other airline and may destroy the name of THAI airways. 2.2. Porter Five Forces Since Thai Airways stresses service and does so at higher prices, substitute products is not a very significant threat. It is also evident that the demand for airlines far outreaches the supply and growth rate in the airline industry is very slow if not stagnant at the moment. This increases the intensity of competition in the market, sparking off more rivalry, despite current alliances with competition. Supplier power is particularly strong as it there are two major suppliers in the industry “ Airbus and Boeing, there are not many alternatives to choose from. Buyer power is increasing currently due to the rise in low cost competitors, so buyers have more choices in terms of alternatives. There are also a large number of buyers that are more price conscious due to the economic recession of 2008 (Powell 2003). 3. Internal Environment Analysis 3.1. VRIO Framework Assigned Seating Thai Airways allows their customers to choose the exact seat they want before the day of the flight. This makes the flight more enjoyable. Customers can make sure the