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THAILAND’S
AEROSPACE
I N D U S T R Y
Thailand Board of Investment
www.boi.go.th
Global Air Passengers by Region2
Thailand Aircraft Movement1
* Thailand Passenger Movement1
*
INDUSTRY OVERVIEW
Aerospace Industry Sees
High Growth
Over the past 30 years, the airline
industry has grown exponentially due
to escalating global travel demand.
Passenger air traffic has doubled
every 15 years since the early
eighties1
, and is expected to grow at
an average annual rate of 3.8% over
the next 20 years to reach 7 billion
passengers in 20342
.
There is massive economic promise
in the Asia-Pacific region given the
forecast of a 20-year annual growth
rate at 4.9%. In 2034, the region as
a whole will account for 42% of
global passenger traffic, with an
extra 1.8 billion passengers. Given
its immense growth potential and
budding opportunities, many world-
class aerospace companies are looking
to expand and locate their business in
the Asia-Pacific region.
AEROSPACE
INDUSTRY IN
THAILAND
Cascading Expansion in
Thailand’s Domestic Market
Thailand’s aviation growth is seeing
rapid expansion as the center of gravity
for global aviation shifts to the Asia-
Pacific region. This is reflected in the
steady growth of total air traffic in the
country over the past several years.
Source:
1
Airbus Global Market Forecast Report, 2015;
2
International Air Transport Association (IATA)
Note: *forecasted
Source:
1
Airport of Thailand PLC. (AOT),
Department of Civil Aviation (DCA)
Note:
*For fiscal year: Oct-Sept
**Compound Annual Growth Rate 2011-2015
3%5%
8%
23%
27%
35%
Asia Pacific Europe
2014 2034*
North America South America
Middle East Africa
4%5%
8%
20%
20%
42%
Asia Pacific Europe
North America South America
Middle East Africa
[In Percentage of Total Flows] [In Percentage of Total Flows]
3%5%
8%
23%
27%
35%
Asia Pacific Europe
2014 2034*
North America South America
Middle East Africa
4%5%
8%
20%
20%
42%
Asia Pacific Europe
North America South America
Middle East Africa
[In Percentage of Total Flows] [In Percentage of Total Flows]
[In'000Flights]
0
200
400
600
800
1000
2011 2012 2013 2014 2015
381
336
238
233
252
803
691
350
382
490
422
355
112149
238
Domestic Internation
[InMillionPassengers]
0
25
50
75
100
125
150
2011 2012 2013 2014 2015
6353
4439
43
118
111
5858
72
5559
1419
29
Domestic Internation
13.14%**
13.54%**
[In'000Flights]
0
200
400
600
800
1000
2011 2012 2013 2014 2015
381
336
238
233
252
803
691
350
382
490
422
355
112149
238
Domestic Internation
[InMillionPassengers]
0
25
50
75
100
125
150
2011 2012 2013 2014 2015
6353
4439
43
118
111
5858
72
5559
1419
29
Domestic Internation
13.14%**
13.54%**
Thailand’s air traffic is rising at 3
times faster than the global market.
It has increased at an average annual
rate of 13.14% and 13.54% for total
aircraft movement and passenger
movement respectively, during 2011–
2015.
Airports
World-Class International Airports
with Huge Expansion Plans
The prominence of Thailand’s aviation
industry is highlighted by significant
growth in the amount of airline traffic,
cargo movements and number of
passengers passing through Thailand’s
international airports.
Of all 38 commercial airports operating
under many organizations and
associations. However, there are 12
international airports covering all key
destinations in Thailand.
International Airports under
Airport of Thailand PCL (AOT) Operation
To capture the demand and boost further growth
in the Thai aviation industry, AOT is developing
master plans to enhance the capacity and quality
of Thailand’s international airports.
Suvarnabhumi Airport (BKK)
Capacity
Aircraft 68 Flights/Hour
Passenger 45 Million/Year
Cargo 1,700,000 Metric Tons/Year
As Thailand’s air traffic has grown at a dramatic
rate, exceeding the maximum airport capacity, AOT
began the Suvarnabhumi Airport Development
Project valued at THB 62,503 million with
completion scheduled for 2019. The construction
project covers three main areas including the
Midfield satellite 1, passenger terminals, and
utilities.
Don Mueang International Airport (DMK)
Capacity
Aircraft 40 Flights/Hour
Passenger 30 Million/Year
Cargo 211,000 Metric Tons/Year
The Don Mueang International Airport Master Plan
is currently in the 3rd
phase. This development
project aims to increase the airport and runway
capacity and further enhance Thailand’s aviation
landscape.10%
1%
3%
7%
11%
24%
44%
BKK DMK HKT
CNX HDY CEI
Others
13%
2%
3%
9%
11%
30%
32%
BKK DMK HKT
CNX HDY CEI
Others
[In ‘000 Flights] [In Million Passengers]
803 118
Aircraft Movement
in Fiscal Year 20151
*
Passengers Movement
in Fiscal Year 20151
*
Source:
1
Airport of Thailand PLC.(AOT),
Department of Civil Aviation (DCA)
Note: *For fiscal year: Oct-Sept
Domestic
Airport
International
Airport
Mae Fah Luang-Chiang Rai International Airport (CEI)
Chiang Mai International Airport (CNX)
Udon Thani International Airport (UTH)
Ubon Ratchathani
International Airport (UBP)
Don Mueang
International Airport (DMK)
Suvarnabhumi Airport (BKK)
U-Tapao International Airport (UTP)
Samui International Airport (USM)
Surat Thani International Airport (URT)
Krabi International Airport (KBV)
Phuket International Airport (HKT)
Hat Yai International Airport (HDY)
38
Commercial
Airports1
Chiang Mai
International Airport (CNX)
Capacity
Aircraft 24 Flights/Hour
Passenger 8 Million/Year
Cargo
36,000
Metric Tons/Year
Phuket
International Airport (HKT)
Capacity
Aircraft 23 Flights/Hour
Passenger 6.5 Million/Year
Cargo
1,700,000
Metric Tons/Year
Hat Yai
International Airport (HDY)
Capacity
Aircraft 18 Flights/Hour
Passenger 2.5 Million/Year
Cargo
14,000
Metric Tons/Year
Mae Fah Luang-Chiang Rai
Intenational Airport (CEI)
Capacity
Aircraft 16 Flights/Hour
Passenger 3 Million/Year
Cargo
3,000
Metric Tons/Year
International Airports under
Other Organizations and Associations
Apart from the above mentioned, there are many international airports such as
Krabi international airport (KBV), U-tapao international airport (UTP), and Samui
International Airport (USM) under the operation of these organizations and
associations
Department of
Civil Aviation (DCA) Bangkok Airways
PCL
Market Share
International and Domestic Flights
Market Share
Domestic Flights Only
Royal Thai Navy
Airline Business
Growth of Airlines Business
Driven by High Air Traffic
The airline business in Thailand
continues to prosper as the number
of visitors to Thailand increase. The
expansion of Thai Airlines is mainly
driven by dramatic rise in the demand
for low cost carriers. Currently, the
market share of low-cost airlines
contributes to only about 30% of the
total market share, which showcases
the huge growth opportunity in this
sector.
9%
22%
27%
28%
Air Asia
Nok Air
Thai Airways / Thai Smile
Bangkok Airways
Thai Lion Air
37%
Others
7%
26%
30%
Low-cost Airlines
Thai Airways / Thai Smile
Bangkok Airways
Others
14%
9%
22%
27%
28%
Air Asia
Nok Air
Thai Airways / Thai Smile
Bangkok Airways
Thai Lion Air
37%
Others
7%
26%
30%
Low-cost Airlines
Thai Airways / Thai Smile
Bangkok Airways
Others
14%
A surge in Thailand’s air traffic has
also led to the expansion of domestic
airlines, boosting the number of new
airplanes. In 2014, Thailand made a
purchase order out for 55 brand new
fleets1
, including fleet models A320s,
A350-900 XWB, B737-8, B787-8/9, and
Bombardier Q402(NG).
Airline Market in Thailand, 20141
Source:
1
Aerospace Engineering Faculty,
Kasetsart University
Maintenance, Repair,
and Overhaul (MRO)
Largely Untapped Maintenance,
Repair, and Overhaul (MRO) Sector
An increase in overall air traffic and
the population’s increasing use of low-
cost airlines signify the fiscal promise
that exists in Thailand, not only in
aviation but also in its multi-billion dollar
aircraft service maintenance, repair, and
overhaul (MRO) sector.
Commercial airlines’
M R O e x p e n s e s a re
estimated to reach USD
12 billion by 2024 in the
Asia-Pacific region, and
approximately 6.3%
of that expenditure is
forecast to occur in
Thailand1
. Hence, Thailand
welcomes numerous
foreign investors in the
MRO business as this fast-
growing business still has
immense opportunity for
growth.
Over this decade (2015-2024),
Thailand’s MRO expenditure has been
forecasted to reach a total amount
of USD 10.6 billion. With Thailand’s
location at the heart of ASEAN, and
the presence of an extensive network
of international airports all around
the country, Thailand’s MRO market
is expected to expand even further
with new investments in Research and
Development (R&D) and high technology
machineries.
[InUSDBillion]
0
0.5
1
1.5
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
1.35
1.271.191.12
1.050.990.930.970.97
0.77
6.40%*
Total Thailand’s MRO Expenditure
Forecast in 2015-20241
Source:
1
Office of Transport and Traffic Policy and
Planning (OTP), Ministry of Transport
Note: *Compound Annual Growth Rate 2015-2024
Source:
1
Office of Transport and Traffic Policy and Planning
(OTP), Ministry of Transport
2
Geo-Informatics and Space Technology
Development Agency (GISDA)
3
Frost & Sullivan
Components
Engine
Maintenance
Line
Maintenance
Airframe
Heavy
Modifications
[In USD million]
0 50 100 150 200 250 300 350
57.4
60.4
120.4
213.3
320.4
LG Wheels &
Brakes
APU
IFE
Components
Engine -
Fuel and Control
Landing Gear
[In USD million]
0 50 100 150 200 250 300 350 400 450 500 550
216.6
222.9
297.9
434.4
529.4
Thailand’s MRO Spending, 20151
Top 5 Total Component MRO Spending
Forecast, Thailand 2015-20243
In 2015, the total MRO
expenditure in Thailand
was USD 771.9 million
or only around 40%
of the total Thai MRO
expenditure is spent in
Thailand. The opportunity
on investment in services
such as engine, line
airframes and core parts
maintenance are still high.
This leaves room for substantial growth
for multinational MRO companies in
Thailand.
Thailand’s present MRO focus is
on components, engines, and line
maintenance; the top five components
that are expected to bring in the most
capital to Thailand MRO
market includes LG wheels &
brakes, APU, IFE components,
engine-fuel and control, and
landing gear. These five
components have been
forecasted to generate more
than USD 1.7 billion over the
next 10 years (2015-2024)2
.
Rolls-Royce has developed
strong long-term relationships
with key businesses in
Thailand including Thai
Airways Inter national,
Bangkok Airways and all three
military branches; Royal Thai Air Force,
Royal Thai Army, and Royal Thai Navy.
Rolls-Royce has recently signed a
long-term TotalCare® service support
contract with Thai Airways International
Public Company Limited (THAI) for Trent
1000 engines that power six Boeing
787-8 Dreamliner aircraft.
Thailand’s Targeted Sectors for MRO
•	 Airframe MRO - including A320 or NEO B737NG, or B737 MAX
•	 Engine MRO - including CFM56-5B/LEAP 1A , CFM56-7/LEAP 1B, etc.
•	 Component MRO - especially on landing gear, wheels and brakes, APU,
engine fuel and control, and IFE
Major International MRO Companies in Thailand
Triumph Aviation
Services - Asia.  This
new company was
formed to become
Triumph Group’s Asia-Pacific
aftermarket services headquarters
and one-stop service center for all
of  Triumph Group’s in-region MRO
activity. The company has invested
over $25 million USD in the new facility
which is poised to be recognized among
the finest MRO centers anywhere in
the world.  
TASA Capabilities include:
•	 Auxiliary power units (APU) and
related accessories (LRU)
•	 Engine nacelle
•	 Components including thrust
reversers, nose cowls and fan cowls
•	 Accessory (LRU) support
•	 Composites & bonded airframe
structures
•	 Core APU & piece part repairs
•	 Structural repairs
•	 Aircraft accessories
Scandinavian Aircraft Maintenance
(SAMTHAI) was founded in 2009 as
a subsidiary of SAM AERO AS. The
company entered into a joint venture
with Thai Aviation Industries to plan
and develop the construction and
operation of the Aviation MRO & Centre
of Excellence in Bangkok. SAMTHAI
also signed an agreement with the
Directorate of Aeronautical Engineering
(DAE) to support & supply the Thai
Royal Flight, Royal Thai Air Force, Royal
Thai Army and Thai Police with spare
parts for numerous aircraft & helicopters
through the Associated Aircraft Group
(AAG) Canada. SAMTHAI is also
cooperating with Geven to supply and
install new seating for Thai International
Airways aircraft.
Chromalloy Thailand, first established
in 1989, is trusted worldwide to
provide commercial aviation engine
manufacturers with a wide range of
innovative, high-technology repair
options to support ever-growing long
term service agreements and power-
by-the-hour programs. 
Chromalloy Process Capabilities
Include:
•	 Engineering
•	 Coatings
•	 Machining
•	 Joining technology
•	 Thermal processing
Manufacturing Base
Excellent Manufacturing Base
Thailand is a perfect manufacturing
base for foreign companies because of
its competitive wages, strong logistic
systems and extensive supporting
facilities.
Thailand’s aircraft and aircraft parts, and
equipment market has seen continual,
robust growth over the past few years.
In 2015, aircraft, spacecraft and parts
(HS code 88) was still Thailand’s largest
aircraft import sector, with imports
valued at US$ 3.3 billion.
Currently, Thailand’s expertise is on
Tier 3 component manufacturing and
Tier 4 composite manufacturing for
original parts manufacturing (OEMs).
The aviation manufacturing market
in Thailand continues to show great
promise.Thereisplentyofopportunity
for foreign companies to explore this
market, especially in higher tiers of
aviation manufacturing.
HS
Code
Description
Imports
(US$ million)
Exports
(US$ million)
88 Aircraft, spacecraft and parts 3,295.87 610.62
854430
Ignition wiring sets & other wiring sets for
vehicles and aircraft
362.64 486.15
840710 Aircraft engines 127.78 188.81
401130
New pneumatic tires, of rubber, of a kind
used for aircraft
12.46 118.52
700721
Laminated safety glass for vehicles and
aircraft
14.78 33.19
Source:
1
Ministry of Commerce (MOC)
Imports and Exports of Aircraft Parts and Equipment, 20151
Aviation Manufacturing Supply Chain
Design, assembly, integration (and service) of an aircraft
Engine, navigation system, electrical power, fuel system
Aviation part, apparatus, electronic, propeller
Gear, screw, bolt, structure cable, electrical wire
OEM
Tier 1
Tier 2
Tier 3
Thailand’s
Targeted Sectors for OEM
•	 Tier 2 & 3 Component
Manufacturing
•	 Tier 4 Composite Manufacturing
Major International
Manufacturing Companies
in Thailand
Triumph Structures is a
Tier II integrator of aircraft
parts and assemblies.
The company is the
industry leader in swaged tubular
products and wire rope mechanical
cables. Triumph Structures is also an
industry leader in high technology
composites including acoustically
treated engine liners, aircraft structures
and medical applications. Triumph
Structures produces a number of
products in Thailand, including
machined and composite parts, and
assemblies.
Ducommun Technologies (DTI), a
California based company, produces
structural and electronic components
and subassemblies for a wide range
of aircraft. In Thailand, DTI has a
manufacturing facility in Saraburi
province to produces commercial
microwave switches to service the
growing demands in the international
markets.
Senior aerospace specializes in
the manufacture of both structures
components and assemblies, and
compressor aero foils for high volume
aero-engine programs. It is located in
Chonburi province.
Driessen Aircraft Interior Systems,
part of Zodiac Aerospace, specializes
in designing, manufacturing, and
marketing high quality galleys, galley
equipment and cargo equipment.
Driessen’s manufacturing facilities in
Lamphun and Samutprakarn province
specialize in galley, galley parts, airline
products, trolley and trolley parts
Cobra International Co., Ltd. In
Chonburi province ,Thailand, is the
world leading OEM manufacturer of
high-end composite products. Cobra
manufactures a wide range of products,
components, and parts for aerospace
and industrial applications. The
company’s focus is providing customers
with production solutions to deliver the
highest quality products to meet each
customers specific needs.
Leistritz, a German company,
was founded in 1905. Leistritz has
manufactured turbine blades for aircraft
and rocket engines, gas and steam
turbines. Leistritz is a global supplier of
components for the international aero
engine and power generation industry.
Leistritz has signed a manufacturing
agreement with Rolls-Royce, a global
power systems company. Leistritz
established a manufacturing base in
Chonburi, Thailand for the forging of
compressor blades to be as a Tier II
supplier of Rolls-Royce.
AVIA Satcom Co., Ltd. is
one of Thailand’s leading
companies in providing high
level of expertise and is
equipped to modify a range
of aircrafts. The company has capability
to develop engineering designs for
modifications, adjustments, installations
and integration of avionics systems and
special mission equipment such as
FLIR, SAR, radar and communication
systems. AVIA Satcom has teamed
up with SAAB, a Swedish aerospace
and defense company, to bring world-
leading products, services and solutions.
This partnership enabled the transfer
of advanced Swedish aerospace
technologies to Thai defence.
Goodyear Thailand manufactures
and distributes a range of tires for
automobiles, trucks and aircraft.
The Goodyear brand has been
visible in Thailand for over 50 years,
while manufacturing facilities were
established here in 1968 to serve the
local and overseas markets. For the
better part of a century, Goodyear’s
corporate values have been centered on
the phrase, “Protect Our Good Name.”
Goodyear Thailand is listed on the Stock
Exchange of Thailand.
Established in 1987, Michelin Siam
Group is a leading manufacturer and
distributor of tire products covering a
wide range of sections from passenger
car and light truck, truck and bus,
motorcycle, earthmover to airplane
tires under the brand names “Michelin”,
“BFGoodrich” and “Siam Tyre”. Michelin
Aircraft Tyre supplies bias tyres, radial
tyres, and tubes for the worldwide
aviation community
WHY THAILAND?
Expanding the
Thai Aviation Sector
The expansion planned for U-Tapao-
Pattaya International Airport covers
over 400 hectares and will be tailored
to serve the aerospace and aviation
industry providing excellent options
for a range of related companies.
Combining a bonded free trade zone
with direct runway access and an
intermodal freight rail yard, aerospace
businesses can take full advantage of
U-Tapao’s two Code F runways as well
having easy access to large industrial
estates 30 km to the north in addition
to two major ports (Laem Chabang and
Maptaphut).
The Industry Zone Plan Includes
4 Relevant Components:
1Maintenance, Repair, &
Overhaul (MRO) Hub
A 92 hectare MRO hub with a dedicated
apron for all hangars, additional aircraft
parking areas, and 24/7 runway access.
Planned for up to 12 Code F hangar
bays and three major workshops.
Landside access is via a dedicated
U-Tapao Airport Industry Zone access
road that in the future will link directly
to the extension of Highway 7.
2Free Trade Zone
A 230 hectare bonded free trade
zone with direct connections to cargo
terminals and a MRO hub. This zone is
intended as a major distribution center
as well as a destination for aerospace
OEMs and other high value export-
oriented industries. Within the zone
is a 15 hectare commercial cluster for
services, amenities, and offices as well
as a dedicated customs office. There is
also an intermodal freight terminal with a
direct rail link that will eventually provide
access to the greater Mekong region.
3Cargo Zone
With 70 hectares, this zone has a
dedicated apron area for all terminal
facilities and space to provide
traditional terminals, dedicated
specialist processing facilities, and air
cargo express trans-shipment hubs.
An airside tunnel connects directly to
the passenger terminal providing easy
access for belly-hold cargo.
4Aviation Training Center
A 32 hectare aviation training center will
provide more than just pilot and airline
crew training. Dedicated maintenance
and technical staff training will provide
a capable employee resource pool for
aerospace firms seeking to establish a
presence in Southeast Asia.
Robust Human Resources
Human resources represent another key consideration with respect to making
investments. Thailand offers abundant, highly-skilled labor at competitive costs
compared to other Asia-Pacific countries, lowering the cost of production for
foreign companies.
Academic Institutions
Thailand creates over 180,000 engineers and 200,000 scientists annually1
.
Over 6 leading academic institutions in Thailand offer degrees in Aerospace
Engineering and related fields including:
1) Kasetsart University
2) King Mongkut’s University of Technology
3) Suranaree University of Technology
4) Chulalongkorn University
5) Thammasat University
6) Assumption University
7) Rangsit University
Aviation Training Centers Approved by CAAT2
Various types of aviation training centers approved by the Civil Aviation Authority
of Thailand (CAAT) are also available around the country, including:
Center Location
Civil Aviation Training Center (CATC)
Bangkok Aviation Training Center
Royal Skyways
Royal Thai Air Force Training Center
Young Eagle Co., Ltd.
Thai Flight Training Co., Ltd.
Sri-racha Aviation Co., Ltd.
Nakhonpanom University
Thai General Aviation Technology
Bangkok
Bangkok
Bangkok
Bangkok
Bangkok
Bangkok
Chonburi
Nakhonpanom
Pathumthani
Other Aviation Training Centers
Pan Am Academy
Pan Am International Flight Training
Center – Thailand is now open for A-320
& Boeing 737 NG training. Located at
the beautiful Assumption University’s
Suvarnabhumi Campus. Pan Am
International Flight Academy and All
Nippon Airways have joined with Nok Air
and Assumption University to create this
world class training center. The Thailand
training center currently houses an
Airbus 320 Full-Flight Simulator and
Airbus 320 Multi-functional Training
Device— as well as a Boeing 737 NG
simulator to meet the needs of airlines
and pilots in the region.
Source:
1
Office of Transport and Traffic Policy and
Planning (OTP), Ministry of Transport,
2
 The Civil Aviation Authority of
Thailand (CAAT)
Source:
Panamacademy,
Thaiairways
Thai Airways Crew Training
Center
Thai Airways International Public
Company Limited provides both flight
simulators and cabin crews training.
Flight simulator training center is
located at Thai Airways International
Head Office, Bangkok. THAI operates a
total of eight level-D full flight simulators
including A300-600, B747-400, B737-
400, B777-200/300, B777ER, A330-
300, A340-600 and A380-800. In
addition, Maintenance Flight Training
Devices (MFTD) A330 and A340 are
also available for more basic aspects
of instruction.
THAI also offers different types of cabin
crew training at Laksi office, Bangkok.
All training sessions are conducted
and supervised by highly experienced
instructors and well-trained engineers.
Non-Tax Incentives
These activities also receive the following non-tax incentives:
INVESTMENT
INCENTIVES
BOI Incentives
BOI recognizes the importance of aerospace industry, and offers a wide range of
tax and non-tax incentives for projects that meet national development objectives.
Tax Incentives
Note: *Exemption of import duty on raw or
essential materials and machinery used in
manufacturing export products
GROUP ELIGIBLE ACTIVITIES
INCENTIVES
Corporate
income tax
exemption
Exemption
of import
duty*
A1
•	 Manufacture of Aircraft or Aircraft Parts
•	 Manufacture of Aerospace Devices and Equipment
•	 Aerospace Operating Systems
•	 Vocational training centers
8 years
without cap 
A2 Repair of Aircraft or Aircraft Parts 8 years 
A3
•	 Manufacture of Onboard Devices and Equipment
(except disposable and reusable aircraft utilities and supplies)
•	 Aviation or Aerospace Industrial Zones or Industrial Estates
5 years 
A4
Repair of Onboard Devices and Equipment (except disposable
and reusable aircraft utilities and supplies)
3 years 
B2
Trade and investment support offices (TISO):
Engineering service
Only
Non-tax Incentives
Permit to bring in
expatriates
Permit to own land
Permit to take or
remit foreign currency
abroad
Strong Supporting
Organizations
Apart from having great infrastructure
and a competitive workforce, several
organizations support and maintain
the laws and regulations of Thailand’s
aerospace industry ensuring that it
meets world-class codes of conduct.
The Civil Aviation Authority of
Thailand (CAAT)
Role and Responsibilities
•	 Enforce laws on air navigation,
aviation liability, and other relevant
laws
•	 Promote and develop the network
of air transport system, aviation
industry, and civil aviation
•	 Prescribe, regulate, and audit
implementation of civil aviation
•	 Cooperate and liase with relevant
domestic and international civil
aviation organizations as well as
organizations related to relevant
conventions and agreements
•	 Etc.
Aeronautical Radio
of Thailand Ltd.
(AEROTHAI)
Role and Responsibilities
•	 Air Traffic Management (ATM) within
the Bangkok Flight Information
Region (Bangkok FIR) for the
safety and efficiency of flights of
Thailand’s airspace users.
•	 Communications, Navigation,
and Surveillance (CNS) System/
Services.
•	 Aeronautical Information Services
(AIS) and Aeronautical Charts.
Airports of Thailand
Public Company
Limited (AOT)
Role and Responsibilities
•	 Developing capability of the 6
AOT’s airports leading to roadmap
formulation for development of
infrastructure
•	 Managing and increasing airport
handling capacity to serve the
increasing air traffic movements
in the future
•	 improving airport operations and
management in order to offer fast,
convenient and highly efficient
services
CONTACT US
HEAD OFFICES
OFFICE OF THE BOARD OF INVESTMENT
555 Vibhavadi-Rangsit Road, Chatuchak, Bangkok 10900
Tel: 	 +66 (0) 2553-8111
Fax: 	+66 (0) 2553-8315
Website: www.boi.go.th
Email: head@boi.go.th
ONE START ONE STOP INVESTMENT CENTER (OSOS)
18th
Floor, Chamchuri Square Building,
319 Phayathai Road, Pathumwan, Bangkok 10330
Tel: 	 +66 (0) 2209-1100
Fax: 	+66 (0) 2209-1199
Website: osos.boi.go.th
Email: osos@boi.go.th
ONE STOP SERVICE CENTER FOR VISAS AND
WORK PERMITS
18th
Floor, Chamchuri Square Building,
319 Phayathai Road, Pathumwan, Bangkok 10330
Tel: 	 +66 (0) 2209-1100
Fax: 	+66 (0) 2209-1194
Email: visawork@boi.go.th
REGIONAL OFFICES
REGIONAL INVESTMENT AND ECONOMIC CENTER 1
CHIANG MAI OFFICE
Airport Business Park 108-110,
90 Mahidol Road, Amphur Muang, Chiang Mai 50100
Tel: 	 +66 (0) 5329 4100
Fax: 	+66 (0) 5329 4199
Email: chmai@boi.go.th
PHITSANULOK OFFICE
3rd
Floor, Thai Sivarat Building, 59/15 Boromtrilokkanat 2 Road,
Naimuang, Amphur Muang, Phitsanulok 65000
Tel: 	 +66 (0) 5524-8111
Fax: 	+66 (0) 5524-8777
Email: phitsanulok@boi.go.th
REGIONAL INVESTMENT AND ECONOMIC CENTER 2
NAKHON RATCHASIMA
2112/22 Mitraphab Road, Amphur Muang,
Nakhon Ratchasima 30000
Tel: 	 +66 (0) 4438 4200
Fax: 	+66 (0) 4438 4299
Email: korat@boi.go.th
REGIONAL INVESTMENT AND ECONOMIC CENTER 3
KHONKAEN
177/54 Moo 17, Mitraphab Road, Amphur Muang,
Khonkaen 40000
Tel: 	 +66 (0) 4327 1300-2
Fax: 	+66 (0) 4327 1303
Email: khonkaen@boi.go.th
REGIONAL INVESTMENT AND ECONOMIC CENTER 4
CHONBURI
46 Moo 5 Laem Chabang Industrial Estate, Sukhumvit Road,
Toongsukhla, Sriracha, Chonburi 20230
Tel: 	 +66 (0) 3840 4900
Fax: 	+66 (0) 3840 4997, +66 (0) 3840 4999
Email: chonburi@boi.go.th
REGIONAL INVESTMENT AND ECONOMIC CENTER 5
SONGKHLA
7-15 Chaiyong Building Juti Uthit 1 Road, Hadd Yai,
Songkhla 90110
Tel: 	 +66 (0) 7458 4500
Fax: 	+66 (0) 7458 4599
Email: songkhla@boi.go.th
REGIONAL INVESTMENT AND ECONOMIC CENTER 6
SURAT THANI
49/21-22 Sriwichai Road, Makhamtia, Amphur Muang,
Surat Thani 84000
Tel: 	 +66 (0) 7740 4600
Fax: 	+66 (0) 7740 4699
Email: surat@boi.go.th
OVERSEAS OFFICES
SHANGHAI
Thailand Board of Investment, Shanghai Office
Royal Thai Consulate General, No. 18, Wanshan Road,
Changning Distric, Shanghai 200336, P.R.C.
Tel:	 +86-21-5260-9876, +86-21-5260-9877
Fax:	+86-21-5260-9873
Email: shanghai@boi.go.th
BEIJING
Thailand Board of Investment, Beijing Office
Royal Thai Embassy, No.40 Guang Hua Road, Beijing 100600 P.R.C.
Tel: 	 +86-10-6532-4510
Fax: 	+86-10-6532-1620
Email: beijing@boi.go.th
GUANGZHOU
Thailand Board of Investment, Guangzhou Office
Investment Promotion Section, Royal Thai Consulate-General,
No.36 Youhe Road, Haizhu District, Guangzhou, P.R.C. 510310
Tel: 	 +86-20-8385-8988 Ext. 220-225,
	 +86-20-8387-7770 (Direct line)
Fax: 	+86-20-8387-2700
Email: guangzhou@boi.go.th
TAIPEI
Thailand Board of Investment, Taipei Office
Taipei World Trade Center, 3rd
Floor, Room 3E 39-40
No.5 Xin-Yi Road, Sec. 5 Taipei 110, Taiwan R.O.C.
Tel:	 +886-2-2345-6663
Fax:	+886-2-2345-9223
Email: taipei@boi.go.th
TOKYO
Thailand Board of Investment, Tokyo Office
Royal Thai Embassy, 8th
Floor, Fukuda Building West,
2-11-3, Akasaka, Minato-ku, Tokyo 107-0052 Japan
Tel:	 +81 (0) 3-3582-1806
Fax:	+81 (0) 3-3589-5176
Email: tyo@boi.go.th
OSAKA
Thailand Board of Investment, Osaka Office
Royal Thai Consulate-General, Bangkok Bank Building, 7th
Floor,
1-9-16 Kyutaro-Machi, Chuo-Ku, Osaka 541-0056 Japan
Tel:	 +81 (0) 6-6271-1395
Fax:	+81 (0) 6-6271-1394
Email: osaka@boi.go.th
SEOUL
Thailand Board of Investment, Seoul Office
#1804, 18th
Floor, Koryo Daeyeongak Center,
97 Toegye-ro, Jung-gu, Seoul, 100-706, Korea
Tel:	 +82-2-319-9998
Fax:	+82-2-319-9997
Email: seoul@boi.go.th
MUMBAI
Thailand Board of Investment, Mumbai Office
Express Tower, 12th
Fl., Barrister Rajni Patel Marg,
Nariman Point, Mumbai, Maharashtra 400021
Tel: 	 +91-22-2204-1589-90
Fax: 	+91-22-2282-1525
Email: mumbai@boi.go.th
NEW YORK
Thailand Board of Investment, New York Office
7 World Trade Center, 34th
Floor, Suite F,
250 Greenwich Street, New York, New York 10007, U.S.A.
Tel: 	 +1 (0) 212 422 9009
Fax: 	+1 (0) 212 422 9119
Email: nyc@boi.go.th
Website: www.thinkasiainvestthailand.com
LOS ANGELES
Thailand Board of Investment, Los Angeles Office
Royal Thai Consulate-General, 611 North Larchmont Boulevard,
3rd
Floor, Los Angeles CA 90004, U.S.A.
Tel: 	 +1 (0)-323-960-1199
Fax: 	+1 (0)-323-960-1190
Email: boila@boi.go.th
FRANKFURT
Thailand Board of Investment, Frankfurt Office
Investment Section, Royal Thai Consulate-General
Bethmannstr. 58,5.0G
60311 Frankfurt am Main,
Federal Republic of Germany
Tel: 	 +49 (069) 92 91 230
Fax: 	+49 (069) 92 91 2320
Email: fra@boi.go.th
PARIS
Thailand Board of Investment, Paris Office
Ambassade Royale de Thaïlande
8, rue Greuze, 75116 Paris, France
Tel: 	 +(33-1) 56 90 26 00
Fax: 	+(33-1) 56 90 26 02
Email: par@boi.go.th
STOCKHOLM
Thailand Board of Investment, Stockholm Office
Stureplan 4C 4th
Floor, 114 35 Stockholm, Sweden
Tel:	 +46 (0) 8463 1158, +46 (0) 8463 1174-75
Fax:	+46 (0) 8463 1160
Email: stockholm@boi.go.th
SYDNEY
Thailand Board of Investment, Sydney Office
Suite 101, Level 1, 234 George Street, Sydney,
New South Wales 2000, Australia
Tel: 	 +61-2-9252-4884
Tel: 	 +61-2-9252-4882
Email: sydney@boi.go.th
Thailand Board of Investment
www.boi.go.th
Think Asia, Invest Thailand

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Thailand's Aerospace Industry (2016)

  • 1. THAILAND’S AEROSPACE I N D U S T R Y Thailand Board of Investment www.boi.go.th
  • 2. Global Air Passengers by Region2 Thailand Aircraft Movement1 * Thailand Passenger Movement1 * INDUSTRY OVERVIEW Aerospace Industry Sees High Growth Over the past 30 years, the airline industry has grown exponentially due to escalating global travel demand. Passenger air traffic has doubled every 15 years since the early eighties1 , and is expected to grow at an average annual rate of 3.8% over the next 20 years to reach 7 billion passengers in 20342 . There is massive economic promise in the Asia-Pacific region given the forecast of a 20-year annual growth rate at 4.9%. In 2034, the region as a whole will account for 42% of global passenger traffic, with an extra 1.8 billion passengers. Given its immense growth potential and budding opportunities, many world- class aerospace companies are looking to expand and locate their business in the Asia-Pacific region. AEROSPACE INDUSTRY IN THAILAND Cascading Expansion in Thailand’s Domestic Market Thailand’s aviation growth is seeing rapid expansion as the center of gravity for global aviation shifts to the Asia- Pacific region. This is reflected in the steady growth of total air traffic in the country over the past several years. Source: 1 Airbus Global Market Forecast Report, 2015; 2 International Air Transport Association (IATA) Note: *forecasted Source: 1 Airport of Thailand PLC. (AOT), Department of Civil Aviation (DCA) Note: *For fiscal year: Oct-Sept **Compound Annual Growth Rate 2011-2015 3%5% 8% 23% 27% 35% Asia Pacific Europe 2014 2034* North America South America Middle East Africa 4%5% 8% 20% 20% 42% Asia Pacific Europe North America South America Middle East Africa [In Percentage of Total Flows] [In Percentage of Total Flows] 3%5% 8% 23% 27% 35% Asia Pacific Europe 2014 2034* North America South America Middle East Africa 4%5% 8% 20% 20% 42% Asia Pacific Europe North America South America Middle East Africa [In Percentage of Total Flows] [In Percentage of Total Flows] [In'000Flights] 0 200 400 600 800 1000 2011 2012 2013 2014 2015 381 336 238 233 252 803 691 350 382 490 422 355 112149 238 Domestic Internation [InMillionPassengers] 0 25 50 75 100 125 150 2011 2012 2013 2014 2015 6353 4439 43 118 111 5858 72 5559 1419 29 Domestic Internation 13.14%** 13.54%** [In'000Flights] 0 200 400 600 800 1000 2011 2012 2013 2014 2015 381 336 238 233 252 803 691 350 382 490 422 355 112149 238 Domestic Internation [InMillionPassengers] 0 25 50 75 100 125 150 2011 2012 2013 2014 2015 6353 4439 43 118 111 5858 72 5559 1419 29 Domestic Internation 13.14%** 13.54%** Thailand’s air traffic is rising at 3 times faster than the global market. It has increased at an average annual rate of 13.14% and 13.54% for total aircraft movement and passenger movement respectively, during 2011– 2015.
  • 3. Airports World-Class International Airports with Huge Expansion Plans The prominence of Thailand’s aviation industry is highlighted by significant growth in the amount of airline traffic, cargo movements and number of passengers passing through Thailand’s international airports. Of all 38 commercial airports operating under many organizations and associations. However, there are 12 international airports covering all key destinations in Thailand. International Airports under Airport of Thailand PCL (AOT) Operation To capture the demand and boost further growth in the Thai aviation industry, AOT is developing master plans to enhance the capacity and quality of Thailand’s international airports. Suvarnabhumi Airport (BKK) Capacity Aircraft 68 Flights/Hour Passenger 45 Million/Year Cargo 1,700,000 Metric Tons/Year As Thailand’s air traffic has grown at a dramatic rate, exceeding the maximum airport capacity, AOT began the Suvarnabhumi Airport Development Project valued at THB 62,503 million with completion scheduled for 2019. The construction project covers three main areas including the Midfield satellite 1, passenger terminals, and utilities. Don Mueang International Airport (DMK) Capacity Aircraft 40 Flights/Hour Passenger 30 Million/Year Cargo 211,000 Metric Tons/Year The Don Mueang International Airport Master Plan is currently in the 3rd phase. This development project aims to increase the airport and runway capacity and further enhance Thailand’s aviation landscape.10% 1% 3% 7% 11% 24% 44% BKK DMK HKT CNX HDY CEI Others 13% 2% 3% 9% 11% 30% 32% BKK DMK HKT CNX HDY CEI Others [In ‘000 Flights] [In Million Passengers] 803 118 Aircraft Movement in Fiscal Year 20151 * Passengers Movement in Fiscal Year 20151 * Source: 1 Airport of Thailand PLC.(AOT), Department of Civil Aviation (DCA) Note: *For fiscal year: Oct-Sept Domestic Airport International Airport Mae Fah Luang-Chiang Rai International Airport (CEI) Chiang Mai International Airport (CNX) Udon Thani International Airport (UTH) Ubon Ratchathani International Airport (UBP) Don Mueang International Airport (DMK) Suvarnabhumi Airport (BKK) U-Tapao International Airport (UTP) Samui International Airport (USM) Surat Thani International Airport (URT) Krabi International Airport (KBV) Phuket International Airport (HKT) Hat Yai International Airport (HDY) 38 Commercial Airports1
  • 4. Chiang Mai International Airport (CNX) Capacity Aircraft 24 Flights/Hour Passenger 8 Million/Year Cargo 36,000 Metric Tons/Year Phuket International Airport (HKT) Capacity Aircraft 23 Flights/Hour Passenger 6.5 Million/Year Cargo 1,700,000 Metric Tons/Year Hat Yai International Airport (HDY) Capacity Aircraft 18 Flights/Hour Passenger 2.5 Million/Year Cargo 14,000 Metric Tons/Year Mae Fah Luang-Chiang Rai Intenational Airport (CEI) Capacity Aircraft 16 Flights/Hour Passenger 3 Million/Year Cargo 3,000 Metric Tons/Year International Airports under Other Organizations and Associations Apart from the above mentioned, there are many international airports such as Krabi international airport (KBV), U-tapao international airport (UTP), and Samui International Airport (USM) under the operation of these organizations and associations Department of Civil Aviation (DCA) Bangkok Airways PCL Market Share International and Domestic Flights Market Share Domestic Flights Only Royal Thai Navy Airline Business Growth of Airlines Business Driven by High Air Traffic The airline business in Thailand continues to prosper as the number of visitors to Thailand increase. The expansion of Thai Airlines is mainly driven by dramatic rise in the demand for low cost carriers. Currently, the market share of low-cost airlines contributes to only about 30% of the total market share, which showcases the huge growth opportunity in this sector. 9% 22% 27% 28% Air Asia Nok Air Thai Airways / Thai Smile Bangkok Airways Thai Lion Air 37% Others 7% 26% 30% Low-cost Airlines Thai Airways / Thai Smile Bangkok Airways Others 14% 9% 22% 27% 28% Air Asia Nok Air Thai Airways / Thai Smile Bangkok Airways Thai Lion Air 37% Others 7% 26% 30% Low-cost Airlines Thai Airways / Thai Smile Bangkok Airways Others 14% A surge in Thailand’s air traffic has also led to the expansion of domestic airlines, boosting the number of new airplanes. In 2014, Thailand made a purchase order out for 55 brand new fleets1 , including fleet models A320s, A350-900 XWB, B737-8, B787-8/9, and Bombardier Q402(NG). Airline Market in Thailand, 20141 Source: 1 Aerospace Engineering Faculty, Kasetsart University
  • 5. Maintenance, Repair, and Overhaul (MRO) Largely Untapped Maintenance, Repair, and Overhaul (MRO) Sector An increase in overall air traffic and the population’s increasing use of low- cost airlines signify the fiscal promise that exists in Thailand, not only in aviation but also in its multi-billion dollar aircraft service maintenance, repair, and overhaul (MRO) sector. Commercial airlines’ M R O e x p e n s e s a re estimated to reach USD 12 billion by 2024 in the Asia-Pacific region, and approximately 6.3% of that expenditure is forecast to occur in Thailand1 . Hence, Thailand welcomes numerous foreign investors in the MRO business as this fast- growing business still has immense opportunity for growth. Over this decade (2015-2024), Thailand’s MRO expenditure has been forecasted to reach a total amount of USD 10.6 billion. With Thailand’s location at the heart of ASEAN, and the presence of an extensive network of international airports all around the country, Thailand’s MRO market is expected to expand even further with new investments in Research and Development (R&D) and high technology machineries. [InUSDBillion] 0 0.5 1 1.5 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1.35 1.271.191.12 1.050.990.930.970.97 0.77 6.40%* Total Thailand’s MRO Expenditure Forecast in 2015-20241 Source: 1 Office of Transport and Traffic Policy and Planning (OTP), Ministry of Transport Note: *Compound Annual Growth Rate 2015-2024 Source: 1 Office of Transport and Traffic Policy and Planning (OTP), Ministry of Transport 2 Geo-Informatics and Space Technology Development Agency (GISDA) 3 Frost & Sullivan Components Engine Maintenance Line Maintenance Airframe Heavy Modifications [In USD million] 0 50 100 150 200 250 300 350 57.4 60.4 120.4 213.3 320.4 LG Wheels & Brakes APU IFE Components Engine - Fuel and Control Landing Gear [In USD million] 0 50 100 150 200 250 300 350 400 450 500 550 216.6 222.9 297.9 434.4 529.4 Thailand’s MRO Spending, 20151 Top 5 Total Component MRO Spending Forecast, Thailand 2015-20243 In 2015, the total MRO expenditure in Thailand was USD 771.9 million or only around 40% of the total Thai MRO expenditure is spent in Thailand. The opportunity on investment in services such as engine, line airframes and core parts maintenance are still high. This leaves room for substantial growth for multinational MRO companies in Thailand. Thailand’s present MRO focus is on components, engines, and line maintenance; the top five components that are expected to bring in the most capital to Thailand MRO market includes LG wheels & brakes, APU, IFE components, engine-fuel and control, and landing gear. These five components have been forecasted to generate more than USD 1.7 billion over the next 10 years (2015-2024)2 .
  • 6. Rolls-Royce has developed strong long-term relationships with key businesses in Thailand including Thai Airways Inter national, Bangkok Airways and all three military branches; Royal Thai Air Force, Royal Thai Army, and Royal Thai Navy. Rolls-Royce has recently signed a long-term TotalCare® service support contract with Thai Airways International Public Company Limited (THAI) for Trent 1000 engines that power six Boeing 787-8 Dreamliner aircraft. Thailand’s Targeted Sectors for MRO • Airframe MRO - including A320 or NEO B737NG, or B737 MAX • Engine MRO - including CFM56-5B/LEAP 1A , CFM56-7/LEAP 1B, etc. • Component MRO - especially on landing gear, wheels and brakes, APU, engine fuel and control, and IFE Major International MRO Companies in Thailand Triumph Aviation Services - Asia.  This new company was formed to become Triumph Group’s Asia-Pacific aftermarket services headquarters and one-stop service center for all of  Triumph Group’s in-region MRO activity. The company has invested over $25 million USD in the new facility which is poised to be recognized among the finest MRO centers anywhere in the world.   TASA Capabilities include: • Auxiliary power units (APU) and related accessories (LRU) • Engine nacelle • Components including thrust reversers, nose cowls and fan cowls • Accessory (LRU) support • Composites & bonded airframe structures • Core APU & piece part repairs • Structural repairs • Aircraft accessories Scandinavian Aircraft Maintenance (SAMTHAI) was founded in 2009 as a subsidiary of SAM AERO AS. The company entered into a joint venture with Thai Aviation Industries to plan and develop the construction and operation of the Aviation MRO & Centre of Excellence in Bangkok. SAMTHAI also signed an agreement with the Directorate of Aeronautical Engineering (DAE) to support & supply the Thai Royal Flight, Royal Thai Air Force, Royal Thai Army and Thai Police with spare parts for numerous aircraft & helicopters through the Associated Aircraft Group (AAG) Canada. SAMTHAI is also cooperating with Geven to supply and install new seating for Thai International Airways aircraft. Chromalloy Thailand, first established in 1989, is trusted worldwide to provide commercial aviation engine manufacturers with a wide range of innovative, high-technology repair options to support ever-growing long term service agreements and power- by-the-hour programs.  Chromalloy Process Capabilities Include: • Engineering • Coatings • Machining • Joining technology • Thermal processing
  • 7. Manufacturing Base Excellent Manufacturing Base Thailand is a perfect manufacturing base for foreign companies because of its competitive wages, strong logistic systems and extensive supporting facilities. Thailand’s aircraft and aircraft parts, and equipment market has seen continual, robust growth over the past few years. In 2015, aircraft, spacecraft and parts (HS code 88) was still Thailand’s largest aircraft import sector, with imports valued at US$ 3.3 billion. Currently, Thailand’s expertise is on Tier 3 component manufacturing and Tier 4 composite manufacturing for original parts manufacturing (OEMs). The aviation manufacturing market in Thailand continues to show great promise.Thereisplentyofopportunity for foreign companies to explore this market, especially in higher tiers of aviation manufacturing. HS Code Description Imports (US$ million) Exports (US$ million) 88 Aircraft, spacecraft and parts 3,295.87 610.62 854430 Ignition wiring sets & other wiring sets for vehicles and aircraft 362.64 486.15 840710 Aircraft engines 127.78 188.81 401130 New pneumatic tires, of rubber, of a kind used for aircraft 12.46 118.52 700721 Laminated safety glass for vehicles and aircraft 14.78 33.19 Source: 1 Ministry of Commerce (MOC) Imports and Exports of Aircraft Parts and Equipment, 20151 Aviation Manufacturing Supply Chain Design, assembly, integration (and service) of an aircraft Engine, navigation system, electrical power, fuel system Aviation part, apparatus, electronic, propeller Gear, screw, bolt, structure cable, electrical wire OEM Tier 1 Tier 2 Tier 3 Thailand’s Targeted Sectors for OEM • Tier 2 & 3 Component Manufacturing • Tier 4 Composite Manufacturing Major International Manufacturing Companies in Thailand Triumph Structures is a Tier II integrator of aircraft parts and assemblies. The company is the industry leader in swaged tubular products and wire rope mechanical cables. Triumph Structures is also an industry leader in high technology composites including acoustically treated engine liners, aircraft structures and medical applications. Triumph Structures produces a number of products in Thailand, including machined and composite parts, and assemblies. Ducommun Technologies (DTI), a California based company, produces structural and electronic components and subassemblies for a wide range of aircraft. In Thailand, DTI has a manufacturing facility in Saraburi province to produces commercial microwave switches to service the growing demands in the international markets. Senior aerospace specializes in the manufacture of both structures components and assemblies, and compressor aero foils for high volume aero-engine programs. It is located in Chonburi province. Driessen Aircraft Interior Systems, part of Zodiac Aerospace, specializes in designing, manufacturing, and marketing high quality galleys, galley equipment and cargo equipment. Driessen’s manufacturing facilities in Lamphun and Samutprakarn province specialize in galley, galley parts, airline products, trolley and trolley parts Cobra International Co., Ltd. In Chonburi province ,Thailand, is the world leading OEM manufacturer of high-end composite products. Cobra manufactures a wide range of products, components, and parts for aerospace and industrial applications. The company’s focus is providing customers with production solutions to deliver the highest quality products to meet each customers specific needs.
  • 8. Leistritz, a German company, was founded in 1905. Leistritz has manufactured turbine blades for aircraft and rocket engines, gas and steam turbines. Leistritz is a global supplier of components for the international aero engine and power generation industry. Leistritz has signed a manufacturing agreement with Rolls-Royce, a global power systems company. Leistritz established a manufacturing base in Chonburi, Thailand for the forging of compressor blades to be as a Tier II supplier of Rolls-Royce. AVIA Satcom Co., Ltd. is one of Thailand’s leading companies in providing high level of expertise and is equipped to modify a range of aircrafts. The company has capability to develop engineering designs for modifications, adjustments, installations and integration of avionics systems and special mission equipment such as FLIR, SAR, radar and communication systems. AVIA Satcom has teamed up with SAAB, a Swedish aerospace and defense company, to bring world- leading products, services and solutions. This partnership enabled the transfer of advanced Swedish aerospace technologies to Thai defence. Goodyear Thailand manufactures and distributes a range of tires for automobiles, trucks and aircraft. The Goodyear brand has been visible in Thailand for over 50 years, while manufacturing facilities were established here in 1968 to serve the local and overseas markets. For the better part of a century, Goodyear’s corporate values have been centered on the phrase, “Protect Our Good Name.” Goodyear Thailand is listed on the Stock Exchange of Thailand. Established in 1987, Michelin Siam Group is a leading manufacturer and distributor of tire products covering a wide range of sections from passenger car and light truck, truck and bus, motorcycle, earthmover to airplane tires under the brand names “Michelin”, “BFGoodrich” and “Siam Tyre”. Michelin Aircraft Tyre supplies bias tyres, radial tyres, and tubes for the worldwide aviation community WHY THAILAND? Expanding the Thai Aviation Sector The expansion planned for U-Tapao- Pattaya International Airport covers over 400 hectares and will be tailored to serve the aerospace and aviation industry providing excellent options for a range of related companies. Combining a bonded free trade zone with direct runway access and an intermodal freight rail yard, aerospace businesses can take full advantage of U-Tapao’s two Code F runways as well having easy access to large industrial estates 30 km to the north in addition to two major ports (Laem Chabang and Maptaphut). The Industry Zone Plan Includes 4 Relevant Components: 1Maintenance, Repair, & Overhaul (MRO) Hub A 92 hectare MRO hub with a dedicated apron for all hangars, additional aircraft parking areas, and 24/7 runway access. Planned for up to 12 Code F hangar bays and three major workshops. Landside access is via a dedicated U-Tapao Airport Industry Zone access road that in the future will link directly to the extension of Highway 7. 2Free Trade Zone A 230 hectare bonded free trade zone with direct connections to cargo terminals and a MRO hub. This zone is intended as a major distribution center as well as a destination for aerospace OEMs and other high value export- oriented industries. Within the zone is a 15 hectare commercial cluster for services, amenities, and offices as well as a dedicated customs office. There is also an intermodal freight terminal with a direct rail link that will eventually provide access to the greater Mekong region. 3Cargo Zone With 70 hectares, this zone has a dedicated apron area for all terminal facilities and space to provide traditional terminals, dedicated specialist processing facilities, and air cargo express trans-shipment hubs. An airside tunnel connects directly to the passenger terminal providing easy access for belly-hold cargo. 4Aviation Training Center A 32 hectare aviation training center will provide more than just pilot and airline crew training. Dedicated maintenance and technical staff training will provide a capable employee resource pool for aerospace firms seeking to establish a presence in Southeast Asia.
  • 9. Robust Human Resources Human resources represent another key consideration with respect to making investments. Thailand offers abundant, highly-skilled labor at competitive costs compared to other Asia-Pacific countries, lowering the cost of production for foreign companies. Academic Institutions Thailand creates over 180,000 engineers and 200,000 scientists annually1 . Over 6 leading academic institutions in Thailand offer degrees in Aerospace Engineering and related fields including: 1) Kasetsart University 2) King Mongkut’s University of Technology 3) Suranaree University of Technology 4) Chulalongkorn University 5) Thammasat University 6) Assumption University 7) Rangsit University Aviation Training Centers Approved by CAAT2 Various types of aviation training centers approved by the Civil Aviation Authority of Thailand (CAAT) are also available around the country, including: Center Location Civil Aviation Training Center (CATC) Bangkok Aviation Training Center Royal Skyways Royal Thai Air Force Training Center Young Eagle Co., Ltd. Thai Flight Training Co., Ltd. Sri-racha Aviation Co., Ltd. Nakhonpanom University Thai General Aviation Technology Bangkok Bangkok Bangkok Bangkok Bangkok Bangkok Chonburi Nakhonpanom Pathumthani Other Aviation Training Centers Pan Am Academy Pan Am International Flight Training Center – Thailand is now open for A-320 & Boeing 737 NG training. Located at the beautiful Assumption University’s Suvarnabhumi Campus. Pan Am International Flight Academy and All Nippon Airways have joined with Nok Air and Assumption University to create this world class training center. The Thailand training center currently houses an Airbus 320 Full-Flight Simulator and Airbus 320 Multi-functional Training Device— as well as a Boeing 737 NG simulator to meet the needs of airlines and pilots in the region. Source: 1 Office of Transport and Traffic Policy and Planning (OTP), Ministry of Transport, 2  The Civil Aviation Authority of Thailand (CAAT) Source: Panamacademy, Thaiairways Thai Airways Crew Training Center Thai Airways International Public Company Limited provides both flight simulators and cabin crews training. Flight simulator training center is located at Thai Airways International Head Office, Bangkok. THAI operates a total of eight level-D full flight simulators including A300-600, B747-400, B737- 400, B777-200/300, B777ER, A330- 300, A340-600 and A380-800. In addition, Maintenance Flight Training Devices (MFTD) A330 and A340 are also available for more basic aspects of instruction. THAI also offers different types of cabin crew training at Laksi office, Bangkok. All training sessions are conducted and supervised by highly experienced instructors and well-trained engineers.
  • 10. Non-Tax Incentives These activities also receive the following non-tax incentives: INVESTMENT INCENTIVES BOI Incentives BOI recognizes the importance of aerospace industry, and offers a wide range of tax and non-tax incentives for projects that meet national development objectives. Tax Incentives Note: *Exemption of import duty on raw or essential materials and machinery used in manufacturing export products GROUP ELIGIBLE ACTIVITIES INCENTIVES Corporate income tax exemption Exemption of import duty* A1 • Manufacture of Aircraft or Aircraft Parts • Manufacture of Aerospace Devices and Equipment • Aerospace Operating Systems • Vocational training centers 8 years without cap  A2 Repair of Aircraft or Aircraft Parts 8 years  A3 • Manufacture of Onboard Devices and Equipment (except disposable and reusable aircraft utilities and supplies) • Aviation or Aerospace Industrial Zones or Industrial Estates 5 years  A4 Repair of Onboard Devices and Equipment (except disposable and reusable aircraft utilities and supplies) 3 years  B2 Trade and investment support offices (TISO): Engineering service Only Non-tax Incentives Permit to bring in expatriates Permit to own land Permit to take or remit foreign currency abroad Strong Supporting Organizations Apart from having great infrastructure and a competitive workforce, several organizations support and maintain the laws and regulations of Thailand’s aerospace industry ensuring that it meets world-class codes of conduct. The Civil Aviation Authority of Thailand (CAAT) Role and Responsibilities • Enforce laws on air navigation, aviation liability, and other relevant laws • Promote and develop the network of air transport system, aviation industry, and civil aviation • Prescribe, regulate, and audit implementation of civil aviation • Cooperate and liase with relevant domestic and international civil aviation organizations as well as organizations related to relevant conventions and agreements • Etc. Aeronautical Radio of Thailand Ltd. (AEROTHAI) Role and Responsibilities • Air Traffic Management (ATM) within the Bangkok Flight Information Region (Bangkok FIR) for the safety and efficiency of flights of Thailand’s airspace users. • Communications, Navigation, and Surveillance (CNS) System/ Services. • Aeronautical Information Services (AIS) and Aeronautical Charts. Airports of Thailand Public Company Limited (AOT) Role and Responsibilities • Developing capability of the 6 AOT’s airports leading to roadmap formulation for development of infrastructure • Managing and increasing airport handling capacity to serve the increasing air traffic movements in the future • improving airport operations and management in order to offer fast, convenient and highly efficient services
  • 11. CONTACT US HEAD OFFICES OFFICE OF THE BOARD OF INVESTMENT 555 Vibhavadi-Rangsit Road, Chatuchak, Bangkok 10900 Tel: +66 (0) 2553-8111 Fax: +66 (0) 2553-8315 Website: www.boi.go.th Email: head@boi.go.th ONE START ONE STOP INVESTMENT CENTER (OSOS) 18th Floor, Chamchuri Square Building, 319 Phayathai Road, Pathumwan, Bangkok 10330 Tel: +66 (0) 2209-1100 Fax: +66 (0) 2209-1199 Website: osos.boi.go.th Email: osos@boi.go.th ONE STOP SERVICE CENTER FOR VISAS AND WORK PERMITS 18th Floor, Chamchuri Square Building, 319 Phayathai Road, Pathumwan, Bangkok 10330 Tel: +66 (0) 2209-1100 Fax: +66 (0) 2209-1194 Email: visawork@boi.go.th REGIONAL OFFICES REGIONAL INVESTMENT AND ECONOMIC CENTER 1 CHIANG MAI OFFICE Airport Business Park 108-110, 90 Mahidol Road, Amphur Muang, Chiang Mai 50100 Tel: +66 (0) 5329 4100 Fax: +66 (0) 5329 4199 Email: chmai@boi.go.th PHITSANULOK OFFICE 3rd Floor, Thai Sivarat Building, 59/15 Boromtrilokkanat 2 Road, Naimuang, Amphur Muang, Phitsanulok 65000 Tel: +66 (0) 5524-8111 Fax: +66 (0) 5524-8777 Email: phitsanulok@boi.go.th REGIONAL INVESTMENT AND ECONOMIC CENTER 2 NAKHON RATCHASIMA 2112/22 Mitraphab Road, Amphur Muang, Nakhon Ratchasima 30000 Tel: +66 (0) 4438 4200 Fax: +66 (0) 4438 4299 Email: korat@boi.go.th REGIONAL INVESTMENT AND ECONOMIC CENTER 3 KHONKAEN 177/54 Moo 17, Mitraphab Road, Amphur Muang, Khonkaen 40000 Tel: +66 (0) 4327 1300-2 Fax: +66 (0) 4327 1303 Email: khonkaen@boi.go.th REGIONAL INVESTMENT AND ECONOMIC CENTER 4 CHONBURI 46 Moo 5 Laem Chabang Industrial Estate, Sukhumvit Road, Toongsukhla, Sriracha, Chonburi 20230 Tel: +66 (0) 3840 4900 Fax: +66 (0) 3840 4997, +66 (0) 3840 4999 Email: chonburi@boi.go.th REGIONAL INVESTMENT AND ECONOMIC CENTER 5 SONGKHLA 7-15 Chaiyong Building Juti Uthit 1 Road, Hadd Yai, Songkhla 90110 Tel: +66 (0) 7458 4500 Fax: +66 (0) 7458 4599 Email: songkhla@boi.go.th REGIONAL INVESTMENT AND ECONOMIC CENTER 6 SURAT THANI 49/21-22 Sriwichai Road, Makhamtia, Amphur Muang, Surat Thani 84000 Tel: +66 (0) 7740 4600 Fax: +66 (0) 7740 4699 Email: surat@boi.go.th OVERSEAS OFFICES SHANGHAI Thailand Board of Investment, Shanghai Office Royal Thai Consulate General, No. 18, Wanshan Road, Changning Distric, Shanghai 200336, P.R.C. Tel: +86-21-5260-9876, +86-21-5260-9877 Fax: +86-21-5260-9873 Email: shanghai@boi.go.th BEIJING Thailand Board of Investment, Beijing Office Royal Thai Embassy, No.40 Guang Hua Road, Beijing 100600 P.R.C. Tel: +86-10-6532-4510 Fax: +86-10-6532-1620 Email: beijing@boi.go.th GUANGZHOU Thailand Board of Investment, Guangzhou Office Investment Promotion Section, Royal Thai Consulate-General, No.36 Youhe Road, Haizhu District, Guangzhou, P.R.C. 510310 Tel: +86-20-8385-8988 Ext. 220-225, +86-20-8387-7770 (Direct line) Fax: +86-20-8387-2700 Email: guangzhou@boi.go.th TAIPEI Thailand Board of Investment, Taipei Office Taipei World Trade Center, 3rd Floor, Room 3E 39-40 No.5 Xin-Yi Road, Sec. 5 Taipei 110, Taiwan R.O.C. Tel: +886-2-2345-6663 Fax: +886-2-2345-9223 Email: taipei@boi.go.th TOKYO Thailand Board of Investment, Tokyo Office Royal Thai Embassy, 8th Floor, Fukuda Building West, 2-11-3, Akasaka, Minato-ku, Tokyo 107-0052 Japan Tel: +81 (0) 3-3582-1806 Fax: +81 (0) 3-3589-5176 Email: tyo@boi.go.th OSAKA Thailand Board of Investment, Osaka Office Royal Thai Consulate-General, Bangkok Bank Building, 7th Floor, 1-9-16 Kyutaro-Machi, Chuo-Ku, Osaka 541-0056 Japan Tel: +81 (0) 6-6271-1395 Fax: +81 (0) 6-6271-1394 Email: osaka@boi.go.th SEOUL Thailand Board of Investment, Seoul Office #1804, 18th Floor, Koryo Daeyeongak Center, 97 Toegye-ro, Jung-gu, Seoul, 100-706, Korea Tel: +82-2-319-9998 Fax: +82-2-319-9997 Email: seoul@boi.go.th MUMBAI Thailand Board of Investment, Mumbai Office Express Tower, 12th Fl., Barrister Rajni Patel Marg, Nariman Point, Mumbai, Maharashtra 400021 Tel: +91-22-2204-1589-90 Fax: +91-22-2282-1525 Email: mumbai@boi.go.th NEW YORK Thailand Board of Investment, New York Office 7 World Trade Center, 34th Floor, Suite F, 250 Greenwich Street, New York, New York 10007, U.S.A. Tel: +1 (0) 212 422 9009 Fax: +1 (0) 212 422 9119 Email: nyc@boi.go.th Website: www.thinkasiainvestthailand.com LOS ANGELES Thailand Board of Investment, Los Angeles Office Royal Thai Consulate-General, 611 North Larchmont Boulevard, 3rd Floor, Los Angeles CA 90004, U.S.A. Tel: +1 (0)-323-960-1199 Fax: +1 (0)-323-960-1190 Email: boila@boi.go.th FRANKFURT Thailand Board of Investment, Frankfurt Office Investment Section, Royal Thai Consulate-General Bethmannstr. 58,5.0G 60311 Frankfurt am Main, Federal Republic of Germany Tel: +49 (069) 92 91 230 Fax: +49 (069) 92 91 2320 Email: fra@boi.go.th PARIS Thailand Board of Investment, Paris Office Ambassade Royale de Thaïlande 8, rue Greuze, 75116 Paris, France Tel: +(33-1) 56 90 26 00 Fax: +(33-1) 56 90 26 02 Email: par@boi.go.th STOCKHOLM Thailand Board of Investment, Stockholm Office Stureplan 4C 4th Floor, 114 35 Stockholm, Sweden Tel: +46 (0) 8463 1158, +46 (0) 8463 1174-75 Fax: +46 (0) 8463 1160 Email: stockholm@boi.go.th SYDNEY Thailand Board of Investment, Sydney Office Suite 101, Level 1, 234 George Street, Sydney, New South Wales 2000, Australia Tel: +61-2-9252-4884 Tel: +61-2-9252-4882 Email: sydney@boi.go.th Thailand Board of Investment www.boi.go.th Think Asia, Invest Thailand