Overview on

Aviation Industry and

MRO&OEM in Thailand
-----------------------------
Glot Sanalaksana
Quality Assurance Department
Civil Aviation Authority of Thailand
August 2018
 Air Traffic

Demand
Conditions

Fleet Forecast
 Air Traffic in Thailand

• Thailand’s air passenger traffic grew threefold in the past 10 years from 2006 to 2016. The
growth, which was modest until 2010, took off in 2010 and has been going up at pace since then.

63

• The growth in aircraft movements of 12.32% is

almost 4 times the global CAGR of 3.33% from
2006 to 2016 whereas Passenger Traffic has grown
at 11.64% CAGR in the same period.

Source: Frost & Sullivan Analysis

 Air Traffic

Demand
Conditions
Fleet
Forecast
 Thailand Fleet Forecast

• Thailand currently has an operating fleet of 314 aircrafts and this is expected to grow at a CAGR
of 4.86% over the next 20 years to reach 811 aircrafts in 2037
900
Thailand Fleet Forecast (2017 – 37)
800
Others

811 700
B777

2.6X 600

Number of Aircrafts
B737

500
Operating
314 with 4.8% Fleet
A380

400
Existing CAGR A350
Fleet
300
2017 2037 A330
2017 - 2037
200
A320
100
• The growth in Thailand fleet is majorly A319
seen due to increase in narrow body 0

aircrafts (A320 & B737 series) by

volume.

Source: Frost & Sullivan Analysis

 MRO
Related
and
Supporting
Industry
OEM
New Engines of Growth

MRO
OEM
 Thailand MRO Spending
• Major chunk of engine MRO & component MRO business goes overseas to Malaysia,
Singapore, Philippines etc.
• Close to 60% of Thailand’s MRO spending goes overseas, while the remaining 40%
stays within Thailand
2017 MRO Scenario Thailand MRO Spending Growth (2017-2037)

With 5.4% CAGR 2.94 B

1.6 B

0.97B

Source: Frost & Sullivan Analysis

Aerospace MRO Industry Output
$14.5 - $24B
(2017 – 2037)

MRO

5.4% - 9%
CAGR
MRO Manpower Forecast
Scenario 2

• This includes impact of U-Tapao MRO

center and component repair centers of
the top 5 recommended components
• In total, 4,066 new jobs can be created,
which include 2,711 technician and
engineer jobs and 1,355 jobs in the
support functions over 20 year period

Scenario 3
• This includes focusing on engine and
airframe MRO to capture 3% market
from the rest of ASEAN
• This can lead to the creation of
additional 8,610 additional jobs,
including 5,740 technician and engineer
jobs and 2,870 jobs in the support
functions over the next 20 years
Aerospace OEM Industry Output
$47.5 - $57B
(2017 – 2037)

OEM

3.7% - 5.2%
CAGR
OEM Manpower Forecast
Scenario 2
• The scenario 2 assumes that Thailand
can increase their global market share
to 0.5% by 2037

• If this can be achieved, an additional

1,184 new jobs can be created over
and above the base case scenario.

Scenario 3
• This scenario assumes that Thailand
can increase their global market share
to 0.6% by 2037

• This will lead to the creation of an

additional 3,500 new jobs over and
above the base case scenario.
Targeted Aerospace MRO segments

CFM LEAP1A (A319/320/A321) neo

Engine Airframe
CFM LEAP1B
MRO MRO B737MAX

RR Trent 800, 1000 B787

Component
MRO
RR Trent XWB A350

IAE V2500
A380

Landing Engine Fuel & IFE APU Wheels & Brakes

Gear Control
 CAAT Repair Station Approval Process

Pre-Application Formal Document Demonstration

Certification
Meeting Application Evaluation and Inspection
Targeted Aerospace Manufacturing segments
Primes • Airframe prime
• Engine prime
(Integration)
• Airframe assemblies
Tier 1 • Avionics
(Assembly & Testing) • Engine components
• Components

Tier 2 • Assembly, Design & testing

(Design & Build) • Build (Manufacturing)

• Components & Parts manufacturing

Tier 3
(Build to Print)
• Materials
• Steel
Tier 4
(Material • Titanium alloys

Manufacturing & • Aircraft Tires

Support • Composites
Processes)
• Manufacturing support services

Aerospace OEM sectors

in Thailand with high
growth opportunities
Manufacturing Standard and Certification
 Future Plans of Thai Aerospace MRO & OEM
MRO OEM

Regulations
Initiatives
Incentives
Initiatives
Initiatives
Pillar 1 Pillar 2 Pillar 3

Initiatives Incentives Regulation

1. Aerospace Industry Group
under Federation of Thai Industry
2. National Aerospace
Committees & Coordinating
Office
3. Talent Development
4. Supporting Domestic
Companies
5. Research & Technology
Development
6. Laboratories & Certification
Programs
7. Offset Policy for Aerospace
Government Procurements
1. Tax – based & Non tax based 1. Revision of Limitation on
2. Tailored packages Foreign Equity Ownership <49%
3. Financial Grants & Capital 2. Restriction on Aerofoils
subsidies manufacturing
3. Import Duty exemptions on
aircraft & related parts
4. Delays with Foreign repair
station certificate
5. Bilateral Aviation Safety
Agreement
6. Foreign Employment &
Property Ownership
7. Conversion of Aircraft
Technician License to Thai

Source: Frost & Sullivan Analysis

Thank You
www.caat.or.th