Thai Airways revives THB 10bn MRO project, ready to invest this year

Thai Airways International Plc (THAI) is moving forward with plans to invest in a major 10-billion-baht aircraft maintenance, repair, and overhaul (MRO) centre at U-Tapao Airport, after the Thai Cabinet recently cancelled an earlier resolution which had granted the airline exclusive development rights while it was still a state enterprise.

With THAI no longer classified as a state-owned enterprise, the Eastern Economic Corridor Office (EECO) has announced that the project will now proceed under a private-sector lease model, allowing broader investment opportunities.

Chula Sukmanop, EECO Secretary-General, confirmed that land for the project will soon be opened for bidding, with Thai investors prioritised in the early stages. Both Thai Airways and Bangkok Airways (BA) have expressed readiness to co-invest, having already set aside capital and completed feasibility studies.

EECO expects construction of the MRO hub to begin within this year, in tandem with the development of U-Tapao Airport and the Eastern Aviation City.

Chai Eamsiri, CEO of Thai Airways, said this will be the airline’s first large-scale investment since exiting its business rehabilitation plan. The airline has finalised its internal studies and is ready to proceed as soon as the EECO announces bidding terms.

The MRO facility will span approximately 210 rai of land owned by the Treasury Department and currently under the jurisdiction of the Royal Thai Navy. The project includes:

Heavy Maintenance:

• Simultaneous servicing of 3 wide-body aircraft
• Annual capacity for 110 wide-body and 130 narrow-body aircraft

Line Maintenance:

• Daily capacity to service 70 aircraft, both narrow- and wide-body

Aircraft Painting:

• Annual capacity for painting up to 22 aircraft

Additionally, the facility will feature a smart-hangar equipped with cutting-edge global aviation technology, capable of servicing both Airbus and Boeing aircraft. The first-year revenue target is projected at 400–500 million baht from the repair of 10 aircraft, with an average annual growth rate of 2%. Over the 50-year concession period, total revenue is projected to reach 200 billion baht.