The government approved on Monday an aviation reform plan that aims to enhance Thailand's status as the region's aviation hub and establish a centre for aircraft maintenance, repair and overhaul (MRO).
The plan calls for investment in airports over the next 10 years to the tune of 406 billion baht to raise annual passenger capacity to 277 million from 130 million now.
Industry Minister Uttama Savanayana said that under the reform plan, approved by the mini-cabinet chaired by Prime Minister Prayut Chan-o-cha, the private sector will be allowed to join investment in the airports via the public-private partnership (PPP) programme, while foreign companies will be eligible to handle airport management and hold a share of more than 51% in the MRO centre.
Mr Uttama said the National Policy on Aviation Development Committee, chaired by Deputy Prime Minister Somkid Jatusripitak, will be set up soon to pursue and supervise the reform plan.
Kobsak Phutrakul, assistant minister to the Prime Minister's Office, said the 10-year airport development will cover not only the upgrade of the three main international airports, but also 36 provincial airports.
Over the next 10 years, Don Mueang airport will handle 40 million passengers, up from 30 million now, with the annual passenger capacity at Suvarnabhumi airport raised to 90 million from 45 million and U-tapao to 30 million from 3 million passengers.
The investment plan also calls for the upgrade of 10 regional airports and 26 city airports with a combined investment cost of 86 billion baht.
The 10 regional airports are Phuket, Chiang Mai, Krabi, Hat Yai (Songkhla), Surat Thani, Nakhon Si Thammarat, Chiang Rai, Udon Thani, Ubon Ratchathani and Khon Kaen, with a combined investment cost of 70 billion baht.
Mr Kobsak said the public-private partnership programme will be allowed for 11 city airports: Phrae, Mae Hong Son, Mae Sariang in Mae Hong Son, Tak, Phetchabun, Hua Hin, Nakhon Ratchasima, Pattani, Betong, Chumphon and U-tapao.
Thai Airways International Plc is scheduled to sign a memorandum of understanding with Airbus to establish the commercial MRO centre this August on 600 rai at U-tapao airport.
The MRO centre is expected to start operations within three years.
Mr Kobsak said Thailand has the potential to become the aviation hub of Southeast Asia, thanks to the aviation linkage to 193 routes worldwide, with the number of foreign visitors expected to total 53 million in 2032, up from 30 million now.
The linkage between the main three airports and provincial airports will also help support the tourism industry.
Mr Kobsak said the government also needs to amend existing laws to facilitate the transport of air cargo, with an aim to raise it to 3 million tonnes a year from 1.3 million tonnes at present.
He said Asia-Pacific is expected to see an aviation industry boom over the next 20 years, with 4 million people working in it by 2035, up from 2 million at present.