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15  million  passengers  a  year,  says  Salil  the MRO sector. “Singapore has its limitations when it comes to
        Wisalswadi, Executive Director of Basic and  space. We are growing; there are studies that show that the cost
        Supporting Industries of the Thailand Board  of doing MRO business is lower in Thailand than in Singapore.
        of Investment, who attended MRO Americas  The quality of MRO services in Thailand is also higher. We create
        earlier this year to apprise North American  over 180,000 engineers and 200,00 scientists every year; we
        companies about the investment opportuni-    also have many universities offering degrees in aerospace engi-
        ties available to them in Thailand.          neering besides aviation training centers.”
                                                      The country’s current MRO focus is on components, engines
            “Traffic at the airport has been         and line maintenance; its MRO expenditure is expected to reach
         increasing steadily; the number has         a total of US $10.6 billion by 2024. The top five components
         already crossed one million in 2018,”   produced in Thailand - wheels and brakes, APU, IFE compo-
         “We expect at least 2 million passen-       nents, engine-fuel and control, and landing gear - are forecast
              gers by the end of the year.”          to generate more than US$1.7 billion through the same time
                   Wisalswadi tells Asian            period. About 6.3 percent of the total commercial airlines’ MRO
                   Airlines & Aerospace.             expenditure in the Asia Pacific during the period is expected to
                                                     occur in Thailand.
        Timing it to Perfection
                     ork on the proposed airport city
                     and the overall development of
                     the EEC has been timed to take
         Wadvantage of the fact that the
        Asia Pacific region is the fastest growing avi-
        ation market. According to IATA, more than
        half of the new passenger traffic will come
        from the region over the next two decades.
        Four of the five fastest growing markets in
        terms of additional passengers per year will
        be from Asia, it adds.
            With Asia forecast to have a 40 percent
        share of the global fleet by 2027, industry
        experts expect a substantial increase in MRO
        demand in the region. The combined MRO
        demand in Asia Pacific, China, and India is
        expected to be double that in North America
        by 2027. Thailand believes it has what it takes   Airbus in the Picture
        to become a major MRO player in the Asia     In what is expected to provide considerable momentum to the
        Pacific region.                              country’s efforts to become an MRO powerhouse, Airbus and
                                                     Thai Airways International (THAI) have inked an agreement
         “We already have major international        to establish a new joint venture MRO facility at the U-Tapao
             MRO companies operating in              International Airport.  The project is expected to cost about
          Thailand such as Triumph Aviation          US$338 million, with the joint venture company and the Thai
          Service – Asia (TASA), Chromalloy,         Navy sharing the cost.
             Rolls Royce, TurbineAero and
          Scandinavian Aircraft Maintenance          As per the agreement signed June 22 at the Airbus headquar-
              (SAMTHAI),” says Wisalswadi,           ters in Toulouse, the proposed facility will be one of “the most
                                                     modern and extensive in the Asia-Pacific region, offering heavy
          “We are confident about attracting         maintenance and line services for all widebody aircraft types.”
           new investment; many European             The facility will feature the latest digital technologies to analyse
         companies have already expressed            aircraft maintenance data, as well as advanced inspection tech-
         interest in coming into the proposed        niques, including the use of drones to monitor aircraft airframes.
            aeropolis; we will have a better         Also proposed are specialised repair shops, including for com-
                       idea soon.”                   posite structures, as well as a maintenance training center.
                                                     “THAI and Airbus have undertaken extensive studies to vali-
        Wisalswadi believes Thailand is better poised   date the business plan for this exciting project,” said Usanee
        than Singapore to attract new investors in   Sangsingkeo, THAI acting president. “We are confident that this

        ASIAN AIRLINES & AEROSPACE                                                                 May/June 2018 | 29
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