Thai Airways rejuvenates a THB 10 billion Maintenance, Repair, and Overhaul (MRO) project, preparing to infuse funds this year.
The Eastern Economic Corridor (EEC) is set to open land for bidding, with Thai investors prioritized in the early stages. Among the prospective investors is a joint venture between Thai Airways and Bangkok Airways, who plan to invest approximately 10 billion baht in an MRO (Maintenance, Repair, and Overhaul) centre at U-Tapao Airport.
The project, which is part of the development of U-Tapao Airport and the Eastern Aviation City, has faced delays due to a recent Thai cabinet resolution that revoked Thai Airways' access to land in the EEC after the airline transitioned from a state enterprise. As a result, the project has been paused, and a re-tendering or lease agreement is now necessary to proceed.
Despite the delays, both Thai Airways and Bangkok Airways have expressed readiness to co-invest, having already set aside capital and completed feasibility studies. Chai Eamsiri, the CEO of Thai Airways, reaffirmed the airline's commitment to this project, with plans to formally accept the EEC's co-investment invitation by September 2025. Construction is expected to begin within the next two years, indicating a timeline for the project's commencement around 2027.
The MRO facility at U-Tapao Airport will have an annual capacity for 110 wide-body and 130 narrow-body aircraft for heavy maintenance. It will also feature a smart-hangar equipped with cutting-edge global aviation technology, capable of servicing both Airbus and Boeing aircraft. Daily capacity for line maintenance at the facility is 70 aircraft, both narrow- and wide-body.
The project forms part of Thai Airways' broader recovery and growth plan after financial rehabilitation, aiming to strengthen technical capabilities and infrastructure. Over the 50-year concession period, total revenue for the MRO facility is projected to reach 200 billion baht.
Chula Sukmanop, the Secretary-General of the Eastern Economic Corridor Office, oversees the project, which is one of the three EEC investment projects, including high-speed rail and airport, as mentioned earlier. The project will proceed under a private-sector lease model, allowing broader investment opportunities. The MRO hub is expected to span approximately 210 rai of land owned by the Treasury Department and currently under the jurisdiction of the Royal Thai Navy.
The first-year revenue target for the MRO facility is projected at 400-500 million baht from the repair of 10 aircraft. As the project progresses, it is expected to contribute significantly to the aviation industry in Thailand and the broader economy of the Eastern Economic Corridor.
- The MRO facility at U-Tapao Airport, a part of the Eastern Economic Corridor (EEC) and the broader recovery and growth plan of Thai Airways, will cater to both Airbus and Boeing aircraft, leveraging cutting-edge global aviation technology.
- The joint venture between Thai Airways and Bangkok Airways, aiming to invest 10 billion baht in the MRO facility, views this project as an opportunity to strengthen their technical capabilities and support the growth of the aviation industry in Thailand.
- Despite temporary delays due to regulations, the anticipated timeline for the project's commencement is around 2027, following a re-tendering or lease agreement and Chai Eamsiri's formal acceptance of the EEC's co-investment invitation by September 2025.
- The MRO hub, one of the three EEC investment projects, is expected to generate an annual revenue of 400-500 million baht in its first year and contribute significantly to the aviation industry and the broader economy of the Eastern Economic Corridor over its 50-year concession period, amounting to 200 billion baht in total revenue.
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