Bangkok is pinning expansion hopes on a new government-owned company
Thailand seeks to expand capabilities in both military and commercial aircraft maintenance through the establishment of a new government-owned company.
Thai Aviation Industries (TAI) opened in January 2004 and has gradually taken over several military aircraft maintenance and upgrade programmes from the Royal Thai Air Force. The company is being initially staffed with 200 former air force mechanics and officers, with a former four-star general as managing director. But TAI has ambitions to expand into the commercial aircraft maintenance, repair and overhaul (MRO) market and will hire a new managing director later this year.
“In the future we will bring in civilian management to take our company international,” says TAI programme management manager Manoon Nangern. “Now our main customer is the Thai air force.”
TAI currently maintains the air force’s fleet of Alenia G222, BAe Avro 748 and Lockheed Martin C-130 transports, along with Aero Vodochody L-39 and Pilatus PC-9 trainers. It is just now beginning work on air force Bell 212/412 and army UH-1H helicopters. TAI’s first upgrade project, a structural enhancement package for 18 Lockheed F-16A/Bs, began this month and the company anticipates later undertaking helicopter upgrades.
TAI aspires to establish a commercial MRO shop at Don Muang International Airport after the opening of the new Suvarnabhumi airport, set for the middle of this year. All international and some domestic airlines will move to Suvarnabhumi and the Thai government is considering re-developing the commercial side of Don Muang into a MRO centre. The most likely tenants of the centre would be Thai Airways International, which will keep its maintenance operation at Don Muang, and TAI, which now operates from the military side of Don Muang, but is proposing to open a new facility at the current location of the passenger terminal.
“When the new airport opens, the old airport will be very quiet,” says Manoon. “We need to use some space at the old airport to be able to repair big commercial aircraft, but it’s up to the government.”
Manoon says the first step in TAI’s commercial aircraft expansion plan is to apply for ISO certification, which it aims to secure within two years. Afterwards it will recruit and train mechanics for Airbus and Boeing narrowbody aircraft and potentially cargo conversions. To avoid overlapping with Thai Airways’ 737 overhaul business, TAI is considering establishing an Airbus A320 line. TAI in particular is interested in targeting low-cost carriers in the region, including Thai AirAsia, which plans to replace its current fleet of 737-300s with A320s.
TAI already maintains at its Don Muang hangar some civilian aircraft – including Cessna trainers, Cessna Caravans, Casa 212s and Indonesian Aerospace CN-235s – for a mix of general aviation and government operators. Last year it also helped Thai regional carrier PB Air complete C checks on two Embraer ERJ-145s at Takli air base, where TAI has six hangars and does most of its military maintenance work.
Along with striving to maintain larger commercial aircraft, Manoon says TAI aims to expand into civilian helicopter maintenance, possibly for Bell, and is in talks with Gulfstream to establish a business jet maintenance facility at Don Muang. The expansion may be partly funded through an initial public offering. TAI is now 49% owned by the air force and 51% owned by a government bank, but upon its establishment in 2004 set a goal of going public within five years.
Manoon says TAI also aims to begin pursuing within five years international business for its military aircraft maintenance and upgrade lines. TAI is not certified to pursue any international business, “but we have a plan to do so”, Manoon says. For example, TAI is only able to oversee programme depot maintenance on Thailand’s C-130 fleet because it lacks proper certification from Lockheed to pursue international C-130 operators.
In fact, Thailand continues to outsource some C-130 overhaul work to Malaysia’s Airod and Singapore Technologies Aerospace (ST Aero). Manoon explains TAI does not yet have the capacity to fully meet the Thai air force’s requirement for four C-130 overhauls a year and acknowledges TAI is still working to develop a full set of capabilities for the C-130.
“We have a plan to upgrade our capability, but it will take time,” Manoon says.
ST Aero president Tay Kok Kiang says ST Aero is helping TAI establish a C-130 depot maintenance capability, but “the more complex work” still must be done in Singapore.
“We are helping Thailand. We are teaching their people,” says Tay. “As a customer they’ve asked for help, which we are happy to extend. Whether subsequently they can make it a business case is up to them.”
Tay says ST Aero is also the prime contractor in Thailand’s F-16 structural upgrade programme, although the Lockheed-supplied kits are being installed in Thailand by TAI mechanics. TAI needed ST Aero to oversee the programme because only ST Aero has the required engineering experience, having formerly led a similar upgrade for Singapore.
Thailand is now considering a more comprehensive mid-life upgrade for its F-16 fleet, including a new avionics suite. TAI expects to be appointed the MRO shop for this programme later this year after government funding is secured. Funding is also anticipated starting in the fiscal year beginning 1 October for an army Huey service life extension upgrade which will also likely be led by TAI. n
Source: Flight International
