National carrier Thai Airways born via merger
After 11 months of discussions, the merger of government-owned Siamese Airways Company (SAC) and the Pan Overseas Airlines Siam (POAS) resulted in the newly formed Thai Airways. Ordered to merge by the government in January, the two airlines welcomed the move to end unnecessary duplication and competition.
The board of the new airline was chaired by air force chief ACM Fuen Ronnaphagrad. Some 25 million baht of state funds were earmarked for the purchase of new planes, which would help replace the two POAS Skymaster planes that were lost in separate incidents just four months apart. The first, City of Ayuthaya, crashed into the hills surrounding Hong Kong moments after taking off in heavy fog in March, killing all 26 on board. The crash led to a temporary suspension of the service. The second plane, the City of Bangkok, was lost on July 13 after an engine caught fire on take-off from Don Mueang Airport. All passengers and crew survived.