Thai Airways International Plc (THAI) is gearing up its plan to construct an aircraft maintenance, repair and overhaul centre at U-Tapao airport, targeting large-sized aircraft.
The THAI board has approved a proposal to hire consultants, at a cost of 30 million baht, for its plan to set up the centre at the airport located in Rayong province, said Areepong Bhoocha-Oom, permanent secretary for energy in his capacity as board chairman.
The government plans to boost airport capacity and develop U-Tapao as the country's third main international airport following Suvarnabhumi and Don Mueang airports. The centre comes as a mechanism for the government to fulfil its plan to turn Thailand into a regional hub for aircraft maintenance and repairs for Asia and Asean, he said.
Montree Jumrieng, THAI executive vice president for corporate strategy and sustainable development, said that the THAI board requested 30 million baht at Wednesday's meeting to fund the hiring of a group of consultants to supervise a feasibility study of the aircraft maintenance centre project. Unlike the one previously studied by the Office of Transport and Traffic Policy and Planning, which was focused on small aircraft maintenance, THAI has now shifted to modern, large-sized aircraft models such as the Airbus A380, Airbus A350, Boeing 787 and Boeing 777, said Mr Montree.
"Over 300 Airbus A380s have been already ordered worldwide. Of this number, about 200 are in the Middle East which already has a good capacity for maintenance and repair. The remainder is the target for our maintenance centre," he said.
THAI proposed that a special method be adopted for selecting the consultants for this project, not a conventional bidding method, he said. The project needs consultants in four areas of expertise, namely the aircraft maintenance and repair business, financial, international law and other concerned laws, and project management, he said.
However, the board suggested that the 18-month time frame for the feasibility study that was proposed was far too long and wanted THAI to shorten it making it more compatible with the government's Eastern Economic Corridor Development plan, he said. THAI hopes to finish drafting a framework for the project in three months while the detailed plan is expected in about nine months, he said.
As this project requires investment, a joint investment plan also needs to be studied, drafted and submitted along with the the project's main plan to the State Enterprise Policy Office and the state committee overseeing Public Private Partnership (PPP) policy for approval, he said.
THAI sees Airbus and Boeing as potential joint investors in the project while the project's partners will be companies which currently own both planes, he said.
THAI is now preparing to initiate talks with five airline operators regarding the possibility of forming a network for the U-Tapao aircraft maintenance centre's business, said Mr Areepong.
The centre is seen as a mechanism to both help supplement THAI's income during the low season for air travel and diversify its business, he said.