INDUSTRY NEWS - 4th Civil Aviation SE Asia Summit 2019 -

Thai aerospace industry is ready for take-off

2018-11-05

Aviation and aerospace industry is growing rapidly worldwide. Thailand takes the advantage from this trend as well as its aviation market leadership to bring its aerospace and aviation industry to new heights.
According to its Commercial Market Outlook 2018, Boeing forecasted that in the next 20 years, Asia Pacific will become a major market where fleet of aircraft would be increased 2.8 times from current fleet of 6,139 aircraft to 16,977 aircraft in 2036. This trend will boost demand for commercial aviation services, ranging from supply chain support (parts and parts logistics) to maintenance and engineering services, aircraft modifications and airline operation services. The center of such business, which is now in North America and Europe, will shift to Asia Pacific in the next 20 years.
Huge opportunity is presented to Thailand
Thailand, with its strategic location in the heart of Southeast Asia, is already an aviation hub of the region. The continuous growth in the tourism industry and national economy has driven the country's air traffic to increase three times faster than the global market. In 2017, the number of aircraft movements at the main airports operated by Airports Authority of Thailand Plc (AOT) grew by 5.41% to 833,084 flights. Considering passenger movements, the number of passengers handled at the AOT's airports grew by 9.37% while freight and postal parcel volume increased by 9.68%.
Together with the increasing aircraft and passenger movement, the country's 38 commercial airports, diverse international and local airlines operating in the country make Thailand one of the fast-growing maintenance, repair, and overhaul -- MRO -- services industry and several companies involved in the manufacturing business.
Considering such high potential, the Thai government has included aerospace in the targeted industries that will promote national competitiveness and Thai economic transformation. Thailand's Board of Investment (BOI) also promotes the industry by offering investment incentives to aviation-related activities, namely manufacture and repair of aircraft or aircraft parts, manufacture of aerospace devices and equipment, aerospace operating systems, air transportation services, etc. Investment projects in this category are granted 8-year maximum corporate income tax exemption.
With all supports already in place, 51 projects from 26 companies have been promoted under aircraft part manufacturing activity while 16 projects have been promoted under aircraft and part maintenance and repair activity.
EEC Aerotropolis -- the catalyst
Thailand's aerospace industry is ready to take off and fly high as the development of the Aerotropolis, or an Airport City, in the Eastern Economic Corridor (EEC) is on the fast lane. A comprehensive roadmap of U-Tapao Airport and other facility development is clearly laid out. Once completed, the face of Thailand's aerospace industry will be changed.
The comprehensive Aerotropolis development plan includes U-Tapao Airport expansion plan, under which its total capacity will be increased from 5 million passengers per annum today to 54 million passengers in the next 30 years. New passenger terminal and runways will be built to support this expansion. Other facilities to support the aerospace and aviation industry include a custom free zone, the train system linking Suvarnabhumi, Don Mueang and U-Tapao airports, the development of an ICD in Chachoengsao, Laem Chabang Port Phase 3, Map Ta Phut Port Phase 3 and dual track train projects.
In support of EEC Aerotropolis development, BOI offers additional 2-4 years corporate income tax exemption for investment projects in targeted activities that have cooperation with an educational institution to develop human resources.
MRO
At the heart of the Aerotropolis, the 10-billion-baht Thai Airways International's MRO Campus, a cooperation between THAI and Airbus, will be built. Located on an area of 83 acres on the east of runway 2 at U-Tapao Airport, the facility will have the capacity to provide comprehensive services from traditional to predictive and prescriptive maintenance of a wide variety of aircraft from all makers. The MRO will have the capacity to provide maintenance service to 80-100 aircraft per year in the first 20 years.
The TG MRO Campus, when complete in 2023 will become one of the most advanced, state-of-the-art facility in Asia. It will use advanced technology like Big Data & Analytics, Maintenance Information System, Aircobot (computer + robot) for aircraft inspection, 3D printing, etc. Of course, this indirectly means more technology transfer and people development activities.
With state-of-the-art facilities and technology, the MRO will become another MRO hub for Asia, mainly serving airlines in Thailand and the Asia-Pacific. It is hoped that the project will in the future capture 4% market share in this industry in Asia.
The supply chain
Seeing Aerotropolis taking shape, local related industries are enjoying opportunity to lift their capability from local suppliers to advanced aerospace part suppliers.
The aerospace industry will enormously benefit from the country's huge pool of more than 2,000 tier 2 and 3 local automotive and electronics manufacturers and suppliers. These companies have high potential, experienced workers with good knowledge, and skills. By applying some advanced technology and knowledge, they can upgrade their skill and capability to transform themselves into aerospace part suppliers.
Mr. Remy Maitam, President, Triumph Aviation Services Asia, Ltd., a repair and overhaul service provider based in Thailand, said, "We see tremendous growth in the size of aviation fleet in Southeast Asia, which in turn raises demand for aviation services. Thailand has world-class infrastructure, quality workforce with excellent craftsmanship as well as efficient government, which makes perfect ecosystem for our business. Attractive tax incentive, easy process for work permit application for our expats, business friendly environment, and healthy lifestyle, all make investing in Thailand a pleasant experience for us in doing business in the heart of the fastest growing economic region in the world."
Thai’s Sumeth faces first leadership test

2018-11-01

Thai Airways International (THAI) new president, 53-year-old Sumeth Damrongchaitham, received a dictum from Thailand’s Deputy Prime Minister, Somkid Jatusripitak, when he took over at the carrier in September: complete a new rehabilitation plan for the airline within three months.
It’s a tall order. Last year, the carrier posted a 29.8% drop in operating profit, to $88 million, despite achieving its highest load factor in a decade. But passenger yields fell 7% and when one-off expenses were included for the year, net losses were $63.7 million.
Sumeth told local media the plan aimed to increase revenue from the airline business, catering, and a new MRO facility at U-Tapao airport. THAI’s share of the local market has declined by 10%, to 27%, in the last five years. “The airline business sees relatively stiff competition because of rising numbers of airlines and air routes. The rehab plan needs to increase market share”, Sumeth said.
It also has to make a final decision about an order for 23 new aircraft, both wide and narrow bodies, at an estimated book value of US$3 billion. “I cannot yet reveal any details because the company is in the process of revising the purchase plan. The company’s aircraft purchases need to be revised to conform with its business plan,” Sumeth said.
“The company expects to conclude the purchase plan in 45 days before undergoing vetting by the National Economic and Social Development Board and cabinet approval. The plan to buy new aircraft is a vital part of THAI’s restructuring plan. The purchase is deemed essential to increase the potential of THAI’s airline business,” Sumeth said.
The U-Tapao maintenance centre is a central plank in THAI’s recovery plan. Sumeth said a winning joint venture partner will be secured by next February; a statement that has caused some confusion. THAI signed a Memorandum of Understanding with Airbus in June, but Sumeth said an “auction” was required because Boeing had expressed interest in being involved.
This is a switch in position from June this year when the then acting THAI president, Usanee Sangsingko, said at the MoU signing in Toulouse that “THAI and Airbus have undertaken extensive studies to validate the business plan for this exciting project”.
She continued: “Together, we will develop one of the most advanced and efficient aircraft maintenance centres anywhere in the world.”
Airbus Commercial Aircraft president, Guillaume Faury, said: “We are pleased to enter into this agreement with THAI. This will further strengthen the long-term partnership between our two companies and also contribute to the success of Thailand’s new eastern economic corridor.
“With the fleet of wide-body aircraft in the Asia-Pacific set to triple at around 4,800 airplanes in the next 20 years the project represents a sound business opportunity for both our companies.”
The joint venture is scheduled to be operating within five years. THAI is dismantling the existing U-Tapao MRO facility to provide space for the airport’s second runway and a new passenger terminal.
THAI said the new complex will use “smart hanger” technology that will offer MRO services to five wide-body aircraft and two narrow-bodies and any one time. It will include heavy air-frame maintenance and base maintenance, line maintenance, aircraft painting, other modifications and component maintenance.
Estimated to cost $320 million, it will include a contribution of $192 million from the government, THAI needs to attract joint venture partners to provide the remaining $128 million needed to complete the project.
“The MRO will become significant in generating income to THAI, while the internal rate of return is estimated at 14%, which is quite high,” Sumeth said, and added an estimated income of $6 billion over 50 years from the facility would support THAI’s ambitious to be a national premium airlines.
Thai Airways looks at A350, 777X for fleet renewal

2018-10-19

Thai Airways International PCL is considering the purchase of Airbus A350s or Boeing 777X jets as part of a plan to renew its widebody fleet, a senior executive said on Friday.

The airline submitted a plan to its government to buy 23 jets worth 100 billion baht ($3.07 billion) including some widebodies, but it was last month sent back to the new Thai Airways leadership team for a three-month review.

“Hopefully the figures will not change too much because we need room for expansion,” Thai Airways Vice President Alliances and Commercial Strategy Krittaphon Chantalitanon said of the order size on the sidelines of an industry conference.

A decision is expected before Christmas, he said, with the widebody jets to replace aging 747s, 777-200s and 777-300s. It would also give the airline the capacity to relaunch U.S. flights assuming Thailand’s safety rating is upgraded by the Federal Aviation Administration.

“We also have to do proper market studies whether it is the east coast, the west coast or whatever,” Chantalitanon said of U.S. flights. “At the moment we have not decided where our metal is going to land and we also need the delivery of our future fleet.”

The flights would compete against non-stop U.S. flights from Southeast Asian rivals Singapore Airlines and Philippine Airlines. Chantalitanon said there was enough premium traffic from Thailand and neighboring countries to make the flights viable.

Thai Airways, which has been struggling financially, is pinning hopes of a revival on the new leadership team, jet purchases and improving its brand as tourism booms in the region.

Chantalitanon said there had been a “bit of a drop” in passenger demand on Chinese routes after a boat accident in July that killed dozens of tourists.
European and Japanese demand was stronger, he said, with the airline adding more flights to those regions.
U-tapao MRO centre is key for Thai Airways to turnaround

2018-10-09

Sumeth Damrongchaitham, 53, was officially appointed last month as president of Thai Airways International Plc (THAI).

His challenge is to turn around the loss-making national carrier, one of six financially ailing state firms that have been placed in business rehabilitation as required by the State Enterprise Policy Commission. The others are the State Railway of Thailand, the Bangkok Mass Transit Authority, TOT Plc, CAT Telecom and the Islamic Bank of Thailand.

Mr Sumeth sat down with the Bangkok Post to talk about his plans for his new role and the progress of a new joint venture: a maintenance, repair and overhaul (MRO) facility at U-tapao airport.

When do you expect to propose THAI's rehabilitation plan to the government?

We expect to finish the rehabilitation plan before December this year, as required by Deputy Prime Minister Somkid Jatusripitak, who visited THAI's office in September and ordered the plan's conclusion within three months.

THAI's rehab plan aims to raise income from the airline business, catering, and the MRO facility at U-tapao airport, aiming to develop one of the most advanced MRO centres in the world.

The airline business sees relatively stiff competition because of rising numbers of airlines and air routes.

The market share of THAI fell to 27% this year from 37% in the past five years. The rehab plan needs to increase market share, which is possible as the airline business grows by only 3% annually.

Thai catering has high potential thanks to increasing aircraft numbers and Thailand's status as an aviation hub in the foreseeable future.

What about THAI's plan to buy 23 aircraft worth up to 100 billion baht?

I cannot yet reveal any details because the company is in the process of revising the purchase plan. The company's aircraft purchase needs to be revised to conform with a business plan.

The company expects to conclude the purchase plan in 45 days before undergoing vetting by the National Economic and Social Development Board's and cabinet approval.

The plan to buy new aircraft is a vital part of THAI's restructuring plan. The purchase is deemed essential to increase the potential of THAI's airline business.

How is the MRO progressing?

The Eastern Economic Corridor Committee chaired by Prime Minister Prayut Chan-o-cha approved the project on Oct 4. The project is expected to be endorsed by the cabinet next week. Terms of reference for the project will be introduced within this month, and the winning joint venture partner will be secured by February next year.

Although THAI has already signed a memorandum of understanding with Airbus on the MRO in June, the auction is still needed because Boeing has expressed interest in joining the project.

Total investment in the project is 10.58 billion baht. The government's investment is estimated to account for 6.33 billion baht, with the remaining 4.25 billion baht from the private sector.

What are the economic returns of the project?

The economic rate of return is projected at 22.1 billion baht, excluding jobs created for high technology experts, and revenue from offering services to foreign airlines worth 200 billion baht over 50 years.

The estimated 200 billion baht worth of income over 50 years will play a key role in supporting THAI's ambitious plan to become a national premium airline.

The MRO will become significant in generating income to THAI, while the internal rate of return is estimated at 14%, which is quite high.

The MRO is business has less competition compared with the airline business.

The aviation industry is likely to have steady growth over the next 5-10 years, while at the global level aircraft are expected to increase by 50% during the period, Asia is expected to account for 20% of them.

Due to its geographical position Thailand is expected to become the aviation hub for the region, for which the MRO facility is considered an appropriate investment.

The development of U-tapao aviation city is also expected to attract many companies to set up in the MRO.

When will the MRO at U-tapao airport open?

The project will begin operating within the next five years. THAI will remove the existing maintenance and repair centre at U-tapao to allocate an area for the airport's second runway and new passenger terminal.

The MRO facility will be on a larger scale, using technology called a "smart hanger" that can offer services to five wide-body aircraft and two narrow-body ones. It is to include heavy air-frame maintenance and base maintenance, line maintenance, aircraft painting and other modification, and component maintenance.

Source: https://www.bangkokpost.com/news/transport/1554510/new-thai-boss-envisions-turnaround
Bids set for four EEC megaprojects in Oct.

2018-10-02

The administration committee for development of the Eastern Economic Corridor (EEC) has decided to launch terms of reference (ToRs) for bids of four megaprojects worth a combined 372 billion baht.
Chaired by Industry Minister Uttama Savanayana, the committee approved four projects: the U-tapao airport (200 billion baht); a maintenance, repair and overhaul (MRO) centre (11 billion); the third phase of the Laem Chabang seaport (150 billion); and the third phase of the Map Ta Phut seaport (11.1 billion).
The committee approved the details of the four projects' auctions and plans to propose them to the EEC Policy Committee for approve on Thursday. The cabinet is scheduled to hear the details on Oct 16.
Mr Uttama said these four projects are core infrastructure for the three EEC provinces and the government expects the ToRs to attract potential investors.
"The government insists the EEC scheme is running on track and the development policy will remain unchanged even as Thailand transitions to a general election in February, regardless of what a new government plans to do as administrative successor," he said.
"The EEC Act has already been implemented and this corridor is part of the 20-year national strategy plan."
Earlier the government launched ToR for a high-speed railway, linking Don Mueang, Suvarnabhumi and U-tapao airports, including the administration of Airport Rail Link, with a total value investment of 224 billion baht.
Mr Uttama said all four projects are in the form of a public private partnership (PPP). The government plans to spend 650 billion baht on these EEC-related infrastructures from a total investment budget of 1.7 trillion baht for the corridor during 2017-21.
Kobsak Pootrakool, the prime minister's office minister, said the government plans to have a 30% stake of each PPP contract.
"The government is committing to speed up the ToR launches for all EEC infrastructure projects by next February, and it wants to select all winning bidders and sign contracts for every project by 2019," he said.
Mr Kobsak said the Laem Chabang seaport phase three is scheduled to start operation in 2023, while the Map Ta Phut seaport phase three is set to begin operation in 2025.
The MRO centre, adjacent to U-tapao airport, is scheduled to start operations in 2022, while the U-tapao site is expected to begin full operations in 2023.
Kanit Sangsubhan, secretary-general of the EEC Office, said the administration committee has agreed to a budget of 17 billion baht for digital infrastructure and service projects from 2017-21 to serve the EEC scheme.
This project spans eight master plans that cover the digital realm, including the Digital Park Thailand (1.8 billion baht); advancing the big data, cloud and data centre development project (3.5 billion); an Internet of Things Smart City (815 million); a testing institution for 5G and related navigation infrastructures (310 million); the infrastructure, wiring harness fiberglass cable and i-Pole project (4.3 billion); and the Asean digital hub scheme (5 billion).
GE expands presence in Malaysia

2018-10-01

Last month, now former GE chairman and CEO, John Flannery, signed an agreement in the presence pf Malaysian prime minister, Dr. Mahathir bin Mohamad, and several government ministers that committed the U.S. conglomerate to a US$80 million investment in GE Engines Services Malaysia (GEESM) as well as the establishment of a global IT service desk at GE’s Malaysian headquarters.
GEESM will enter into a long-term tenancy with a subsidiary of the Malaysia Aviation Group Berhad, the parent of restructured Malaysia Airlines Berhad, at facilities to be built adjacent to Kuala Lumpur’s Subang aviation centre. The new workshop, to be equipped to the highest tooling and technological standards, will conduct MRO on joint venture CFM’s LEAP engines. It will be GE’s first workshop outside the U.S. to conduct such services. LEAP engines power single aisle A320beo, the B737s and China’s C919.

Flannery said: “GE has a long history of partnership in Malaysia and we want to see this relationship continue. The GEESM Centre of Excellence is one of our flagship facilities in the region and the renewed lease agreement is a testament to the great work delivered by local talent.

“The establishment of the GE Global IT Service Desk in Kuala Lumpur further represents our beiief in the hugely beneficial shared future that Malaysia, GE and ASEAN (Association of Southeast Asian Nations) have ahead of us.”

GE’s Malaysian Global Help Desk is one of three centres across the globe. Its 130 staff will provide 24/7 dual English-Chinese support for GE customers worldwide when it opens next month.

The potential of the engine leasing and engine MRO sectors for conglomerates such as GE was highlighted with release of a recent World Routes survey that said destinations serviced by single aisle aircraft were the fastest growing routes in the Asia-Pacific.

Top of the Routes table for the busiest routes on the planet were Seoul’s Gimpo to the country’s holiday island of Jeju, with 180 scheduled flights daily and a reported 13.4 million passengers carried last year. The remaining nine airports in the table were all from the Asia-Pacific and all short haul journeys.

In the same survey, the nine out the ten fastest growing scheduled airports routes in the world were from the region and also short haul flights. Only Saudi Arabia’s Jeddah-Riyadh route made the top ten at number eight, tied with Jakarta-Kulanamu.

The Asia-Pacific also swept the table for the busiest scheduled international routes in the world. Top scorer was Hong Kong with five of the busiest international routes in the world. New York’s JFK-London Heathrow was the only non-Asia-Pacific route in the top ten, positioned at number 9.

The fastest growing scheduled air routes in the world in 2017 were: Bangkok-Survarnabhumi-Chiang Mai (36%), Seoul Incheon-Kansai (30.3%), Jakarta-Kuala Lumpur (29.4%), Delhi-Pune (20.6%), Chengdu-Shenzhen (16.8%), Hong Kong-Shanghai (15.5%), Bangkok-Survarnabhumi-Phuket (14.9%), Jeddah-Riyadh (13.9%), Jakarta-Kualanamu (13.9%) and Kolkata-Delhi (13.4%).
THAI Airways eyes more MRO revenue

2018-09-14

Thailand’s aviation industry is pushing a road map to raise maintenance-based income, while launching a plan to push for Don Mueang International Airport as a hub for maintenance, repair and overhaul (MRO) for aircraft engines and U-tapao Airport for integrated MRO service.
According to the International Air Transport Association (IATA), the Asia-Pacific aviation industry is expected to grow about 5.8 per cent during the next 20 years, the same rate as Asean, while the Thai aviation industry is expected to expand the fastest and highest in the world at 8 per cent. Transport Minister Arkhom Termpittayapaisith said that Thailand is developing its aviation industry, particularly the MRO centre for which Thai Airways International Plc (THAI) has signed an agreement with the Royal Thai Navy and the Eastern Economic Corridor (EEC) Committee for operation in the U-tapao Airport.
The centre aims to provide integrated repair services for aircraft at U-tapao Airport, while THAI’s existing aircraft repair centre at Don Mueang airport will be a hub for engine and parts repairs. “Now, THAI and Rolls-Royce will collaborate for manufacturing in Thailand and the first phase will involve engine maintenance, repair and overhaul, and research and development of new engine models,” Arkhom said. The Transport Ministry has asked THAI to conduct a feasibility study to expand the Don Mueang MRO hub as an MRO for global aircraft engines which will be linked to the MRO centre for large-sized aircraft at U-tapao. Based on THAI’s MRO centre development plan, the first part will involve the MRO hub at Don Mueang International Airport. In collaboration with Rolls-Royce, the MRO service will be provided for Trent 700 engines of Airbus A330 and Trent 100 engines of Boeing 787, starting from the fourth quarter of this year. THAI’s aircraft engines will be repaired first and, then Rolls-Royce customers will be serviced early next year. The second part will be the development of the TG MRO Campus at U-tapao Airport, with the aim to develop it as an integrated MRO hub on expectation of service commencement in 2022. Surachai Piencharoensak, executive vice president for technical matters at THAI, said that given the collaboration with Rolls-Royce THAI will invest around Bt1 billion for equipment and human resources development. This year, investment used to finance equipment for the Trent 1000 engine of Boeing 787 is expected to be about Bt500 million to start the MRO service in the fourth quarter. The Don Mueang MRO hub has a capacity to repair 70-80 aircraft engines per year. In the second phase, THAI is expected to invest another Bt500 million for servicing the popular Trent 700 engine of Airbus 330 in 2021. Next year, about 30 aircraft engines are expected at the MRO service. The centre is expected to generate slight income in the fourth quarter and the income will likely increase to Bt1 billion next year and to Bt4 billion to Bt5 billion in 2020 once the MRO service is fully opened for two aircraft engine models. Surachai said that currently THAI earns about Bt3 billion in MRO services with an annual growth of 5 per cent. Combined with income from technical units and the MRO centre for Rolls-Royce, total MRO-based income will more than double to Bt7 billion to Bt8 billion in 2020. He also expects to go ahead with the process to find a private enterprise to jointly invest in the U-tapao MRO hub by November. The signing is expected in December. The U-tapao MRO centre aims to commence service in 2022. The private winner will invest half the Bt4-billion required and THAI will invest the other half for MRO equipment, while the government will subsidise Bt6.3 billion for infrastructure. The U-tapao MRO hub will handle 80-100 aircraft per year in the initial period with estimated annual income of Bt400 million to Bt500 million and expected annual growth at 2 per cent.
THAI Airways Joins Rolls-Royce R&D Project

2018-09-07

Thai Airways International Plc (THAI) and Rolls-Royce have announced a collaboration on an R&D programme for the Trent XWB engine.

Surachai Piencharoensak, executive vice-president for technical matters at THAI, said the Trent XWB Development Testing partnership will take place over a two-year period at Don Mueang airport.

"This is the first overseas engine research and development testing for Rolls-Royce outside the United Kingdom," Mr Surachai said. "This programme is part of the strategic plan for 2018-19 and is a revenue-generating, collaborative project for THAI, whereby technology and skills gained will further strengthen Thailand's aviation industry."

The initial objective is to conduct R&D on the Trent XWB-97 engine, which powers the Airbus A350-1000 aircraft that was launched in February.

To ascertain the engine's limitations in usage, continual simulated engine tests are conducted. These tests, in addition to scheduled checks and maintenance, can help improve product quality.

Dominic Horwood, chief customer officer for civil aerospace at Rolls-Royce Holdings Plc, said the company entered the Thai market over 50 years ago and the latest partnership marks another milestone.

The collaboration will undertake the full chain of aerospace activities in Thailand, including manufacturing; maintenance, repair and operations (MRO); and development testing.

"Rolls-Royce invests about US$100 million (3.3 billion baht) a year to support the manufacturing supply chain footprint in Thailand," Mr Horwood said.

In 2020, THAI and Rolls-Royce will cooperate on Trent 700 engine maintenance and overhaul, making THAI's facility a certified and authorised engine maintenance centre for Rolls-Royce.

Transport Minister Arkhom Termpittayapaisith hailed the cooperative effort between the two countries, saying Thailand's development as an MRO hub would create revenue for THAI.

Last December, THAI and Airbus signed an agreement to assess MRO business opportunities at U-tapao airport in Rayong province.

Development of U-tapao is one of several important projects under the Eastern Economic Corridor (EEC) scheme. The deal between THAI and Airbus defines the framework of mutual cooperation to determine opportunities related to MRO development.

The fleets operated by carriers in Asia and the Pacific are forecast to more than double in size over the next 20 years, from 6,100 aircraft to almost 17,000.

Airbus estimates that the value of MRO in this region alone will reach $664 billion over the next decade.

This year, THAI began maintaining the Airbus A380 at U-tapao. New hangar facilities are planned to support the growing airport.
Sumeth appointed Thai Airways President

2018-09-04

The board of Thai Airways International Plc (THAI) has officially appointed Sumeth Damrongchaitham as the new president.

Mr Sumeth's key mission is to turnaround the national carrier from the red.

The former managing director of Dhanarak Asset Management Co, Mr Sumeth started the job on Sept 1, replacing Usanee Sangingkoeaw, who was acting president from February 2017. He is also appointed acting executive vice-president for finance and accounting.

An aviation expert who requested anonymity speculated that Mr Sumeth will focus on revenue management in his turnaround bid.

A source in THAI said Mr Sumeth will continue the current rehabilitation plan and hopes to enhance competitiveness.

The second quarter was part of the low season and airlines saw fierce competition in part from higher global oil prices.

<p>THAI and its subsidiaries reported an operating loss of 2.8 billion baht in the second quarter, up from 965 million the same period last year.

Total revenue was 47.2 billion baht, up by 2 billion or 4.6% from the same quarter of 2017 as passenger and excess baggage revenue rose.

THAI's rehab plan consists of increasing revenues, adopting low-cost business models, transforming business units by seeking new business opportunities and increasing efficiency in asset management.

In June it signed an agreement to establish a new joint venture maintenance, repair and overhaul (MRO) facility at U-tapao airport, aiming to develop one of the most advanced MRO centres in the world.
Boeing downgrades Asia-Pacific pilot and technician demand forecast

2018-08-31

Boeing this week issued a new Asia-Pacific pilot and technician demand forecast to 2038. In the update, the U.S. manufacturer said the Asia-Pacific region will have the biggest global demand for new civil aviation personnel in the next 20 years. The region is projected to account for 33% of the global need for pilots, 34% for technicians and 36% for cabin crew.
The 20-year demand outlook for new commercial pilots in the region remains strong at 240,000, although this is down 5% on last year’s projection of approximately 253,000 pilots. Boeing said the lower figure was “driven by regional trends that indicate a peak in pilot retirements in the first decade of the forecast and a softening of replacement demand in the later years, due to a younger generation entering the pilot ranks long before reaching mandatory retirement age”.
Boeing also said commercial technician demand in the region has decreased 5% year-on-year, to 242,000. Addressing the shortfall, Boeing said this was the result of advances in product development on the B737 MAX series, which have produced increased maintenance efficiencies. “Overall, maintenance hours required over the life of the airplane will be reduced,” Boeing said.
For cabin crew, the Chicago-headquartered company predicted 3% higher demand, to 317,000, for cabin crew to 2038 “due to anticipated fleet mix, cabin configuration and regulatory requirements”.
China will need 128,500 pilots, 126,750 technicians and 147,250 cabin crew to 2038. Southeast Asia is forecast to require 48,500 pilots, 54,000 technicians and 76,250 cabin crew and South Asia 42,750 pilots, 35,000 technicians and 43,250 cabin crew.
“Strong demand for pilots in the region continues, and we expect that this will be so for the next several years,” said Boeing Global Services vice president of training and professional services, Keith Cooper. “Through our pilot training solutions, including the Pilot Development Program, we are helping to ensure a pipeline of pilots is ready to meet the industry's demand.”
Boeing's Pilot Development Program is an accelerated training program intended to guide pilots from early stage ab-initio training to type rating as a first officer.

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