Government push for MRO Hub in Thailand

BANGKOK, Dec 16 (TNA) -- Deputy Prime Minister Somkid Jatusripitak announced that he expects Thai Airways International (THAI) and Airbus to sign an agreement by the 1st quarter of 2018 to set up a Maintenance and Repair Operations (MRO) facility in Thailand. Mr Somkid on Friday chaired a mutual signing ceremony for a business feasibility study on setting up a regional MRO facility in U-Tapao between Thai Airways International and Airbus. Mr Somkid later told the media that both companies will be setting up a committee to analyze and study the proposal before a decision is made on mutual investment. The committee will also be responsible for coming up with a joint venture business model focusing primarily on aircraft repair and maintenance and the establishment of a parts repairs facility. The government is keen that these initial steps would lead to a joint investment agreement by the 1st quarter of 2018. Preliminary assessment of Thailand's potential indicates a strong advantage in strategic geographical placement, skilled civil aviation labor force and class leading marketing skills. Civil aviation market forecast for the Asia - Pacific region points to a twofold expansion within the next 20 years that will see an increase from the current 6,100 to 17,000 flights annually. Accordingly, the value of civil aviation repair and maintenance bills for the region in the next 10 years could be as high US$664 billion. Taken in conjunction with the projected exponential growth in the tourism sector which in turn will induce a pronounced growth in commercial air travel, the success of the proposal will see Thailand become the regional aviation hub in the next 3 years. (TNA)