The study together with domestic hearings suggest that Thailand has the potential to host an air show to include civil, commercial and military aviation, said Nichapa Yoswee, senior vice-president for business at the Thailand Convention and Exhibition Bureau (TCEB).

The event will also help promote the aerotropolis, one of the megaprojects planned for the Eastern Economic Corridor, she said.

The location of U-tapao airport, which spans areas in Rayong and Chon Buri provinces, could be a suitable venue because of ample accommodation in the area, especially in Pattaya, a city that hosts meetings, incentives, conventions and exhibitions, Ms Nichapa said.

The industry hearing organised recently by the TCEB gathered ideas from 17 agencies in public and private sectors in aviation-related associations and educational institutions.

The agencies include the Eastern Economic Corridor Office, Thai Airways International, Bangkok Airways, the Thai Exhibition Association, the Aerospace Engineering Department and Kasetsart University.

According to the study and industry hearings, Thailand's maintenance, repair and overhaul (MRO) sector is strong, with average growth of 11.8% a year, which is higher than the global rate (5.1%).

The study also revealed Thailand's aerospace industry expertise, which could support the aviation market on the strength of major international MRO and aerospace manufacturing companies operating in Thailand, including Rolls-Royce, Airbus, Senior Aerospace and Ducommun Technologies.

Local subcontractors need to improve aviation manufacturing supply chain from Tier 3 to Tier 2, which entails making more high-end parts like propellers, the study said.

One of the most important factors for Thailand to host air shows is support from the state sector because such events require a large budget.

Ms Nichapa has encouraged the government to sign a 20-year contract with Farnborough International to nominate the company as organiser for the shows, which typically take place every two years.

"International air show events can serve as concrete evidence of how ready Thailand is, in terms of the potential to host global Mice events as well as the capability of the local workforce as an MRO hub in the aviation business," she said.

The initial duration of such an event is four days, featuring 200 exhibitors and 15,000 trade buyers together with 60 aircraft.

The TCEB expects to stimulate spending of 1.4 billion baht from the air show and could create 920 jobs for locals.

The A220-300 is one of the newest single-aisle aircraft of the Airbus family. While the A320neo is the company’s best-selling model, the A220-300 is a complement for destinations with softer demand.

Airbus has more than a 60% market share in the region’s single-aisle market, with more than 3,000 jets flying for 80 different carriers and over 1,500 on order for future delivery.

Christine De Gagne, marketing director at Airbus, said the new equipment should maximise the profits of airlines because now they can fly a smaller jet instead of leaving the seats empty. The efficient design with 20% lower fuel burn per seat highlights the capability of minimising the cost of operations amid fierce competition.

The 100- to 150-seat market is one of the promising segments in the next 20 years, Ms De Gagne said. According to Airbus’s forecast for Asia-Pacific, the demand for this size of single-aisle jet will grow to 7,000 in the next 20 years. Of that number, Airbus aims to take at least a 20% share.

“The A220 family will fill the gap between large single-aisle and regional aircraft, and the range of time which this aircraft can fly is up to 7-8 hours,” Ms De Gagne said. “The lighter weight also means the capability of using a smaller airport in Thailand such as Samui airport, for which we ran a test flight once.”

Korean Air and Air Vanuatu are the first two customers for the A220 in Asia-Pacific. In the global market, Airbus has 551 orders from 21 airlines after delivering 78 aircraft to five airlines.

The accumulated flight hours are more than 200,000, with some carriers using the jet its maximum of around 18 hours a day.

The A220 family consists of the smaller A220-100 and larger A220-300, which are the only passenger aircraft purpose-built for the 100- to 150-seat market.

In Thailand, Airbus has 153 aircraft in service under leading brands such as Thai Airways International, Bangkok Airways, Thai AirAsia and Thai AirAsia X.

Among the popular models are the A320 family, which mainly serves the short-haul route. For long-haul destinations, there are the A330, A350 XWB and A380, connecting Asia with Europe.

Airbus also insists on a pledge to keep safety standards under the scrutiny of the European Union Aviation Safety Agency. The A220 gained approval for 180-minute flights for the extended-range twin-engine operational performance standard, which means it can fly over oceans in the region.

“Thailand is standing out as one of the leading markets in Asia-Pacific,” Ms De Gagne said. “Airbus hopes new aircraft in the fleet will help the airline kick-start with appropriate demand before expanding to the bigger jet in the family when the time is right.”

Turkey’s flag carrier Turkish Airlines commenced a new codeshare partnership today with Thailand’s Bangkok Airways. With Turkish being the only airline to connect the two countries, it is hoped that the new codeshare will provide passengers with convenient connections from Turkey to within Thailand and Southeast Asia.
The agreement covers 16 of Bangkok Airways’ routes including both domestic routes within Thailand and international routes. Two routes of interest covered by the codeshare are the domestic Bangkok and Samui to Phuket routes as Phuket is a popular Thai tourist destination for international visitors. The new codeshare will help people from more places around the world access Phuket.
In addition to the 16 routes currently covered by the codeshare, two more routes are pending government approval, Bangkok-Phnom Penh, Cambodia and Bangkok-Siem Reap, Cambodia, routes. This helps Cambodia to become better connected with Europe as there are currently no nonstop flights between the country and the European continent.
Bilal Ekşi, Turkish Airlines’ general manager, said in a statement about the agreement: “Turkish Airlines is pleased to strengthen the long-lasting commercial cooperation with Bangkok Airways by expanding it with a codeshare agreement. As one of the important gateways to Asia Pacific in the region, our passengers will benefit and enjoy greater convenience when connecting to popular Thailand domestic destinations as well as other neighbouring exciting travel destinations via Bangkok.”
In addition, the President of Bangkok Airways Puttipong Prasarttong-Osoth said “Bangkok Airways is very pleased to work with Turkish Airlines, a leading international airline as the codeshare partner to strengthen our respective route networks. This will offer business and leisure travellers enhanced connectivity and seamless access while travelling in Thailand and our neighbouring countries. Moreover, Turkish Airlines’ passengers travelling on Bangkok Airways will enjoy the boutique airline’s unparalleled services such as lounge access and in-flight meal.”
Just next week, Turkish Airlines will be increasing the frequency of its Bangkok services from two daily flights to three by adding a new Airbus A330-300 service on to the daily schedule. Additionally, the airline will also be upgrading its Istanbul to Phuket service to daily from September up from six times per week, also be operated by the A330-300.

Lufthansa Technik Philippines, the country’s largest aircraft maintenance, repair, overhaul (MRO) operation, mulls expansion of its facilities in Manila with $40 million in new investments that would hire 300 workers in addition to the existing 3,200 headcount even as it noted that the tax and fiscal incentive package granted by the Philippine Economic Zone Authority (PEZA) helps them cope with stiff competition in the Asia Pacific region.
Trade and Industry Secretary Ramon M. Lopez revealed this after his meeting with Lufthansa President and CEO Elmar Lutter.
According to Lopez, the company is planning a 9,000 square meter expansion in the area worth $40 million and will add 300 jobs. The expansion will be completed 13 months after they award the contract.
At present, Lufthansa enjoys fiscal and non-fiscal incentives. PEZA-registered enterprises are entitled to income tax holiday (ITH) and 5 percent gross income tax after the ITH. They are also entitled to zero duty importation of capital equipment, tax deduction on the training expenses and employment of foreign nations.
During the meeting, Lutter informed Lopez that the incentive package “helps Lufthansa deal with challenges in such as stiff competition in the Asia Pacific Region and the logistical costs of operating in an island country.”
Lopez said he fully supports Lufthansa’s MRO expansion plans. These expansions, he said, will help the Philippines become and aerospace and MRO hub in the Asia Pacific.
“The Philippines is positioning itself as the hub for aerospace manufacturing and aftermarket services in the Asia Pacific Region. We have the young, educated, and highly-trainable workforce that is a boon to investors. If we achieve this goal, we can increase our high-value exports and provide decent jobs to more Filipinos,” said Lopez.
Lutter said that the global MRO market is expected to continuously grow by 4 to 5 percent per year, one third of which will come from the Asia Pacific Region.
Lutter further said that job opportunities in other industries and the growing global demand for MRO skilled workers may lead to a labor shortage in the Philippine MRO industry.
Filipinos, he said, are known as skilled aircraft mechanics not just in the Philippines but in the world. “The competitive advantage of the Philippines is its people,” he added.
Lufthansa Technik Philippines, a joint venture of Lufthansa Technik AG (51%) and MacroAsia Corporation (49%), is located at the center of Southeast Asia, within a four-hour flight radius of major international hubs in Asia such as Singapore and Hong Kong. MacroAsia is owned by taipan Lucio Tan, who owns the country’s flag carrier Philippine Airlines.
Within a special economic zone at the Ninoy Aquino International Airport, its facility occupies a total area of 229,000 square meter lot in Villamor Airbase employing 3,200 people. It maintains 3 hangars capable of servicing up to 6 wide-body and 3 narrow body aircraft at a time, and 9 apron parking slots.
Its hangars are equipped with platform systems, overhead cranes, and engine, tail and wing docks. Modern and process-oriented workshops support aircraft overhaul, major modifications, cabin reconfigurations, and aircraft painting.
Based on its website, the company specializes in base maintenance for the A320 family, A330, A340, A380, and Boeing 777 aircraft types. It provides line maintenance services to a wide range of customers. The base maintenance service spectrum includes cabin reconfiguration/retrofit programs and lease return checks available as a stand-alone product or integrated into long-term contracts.
It is precisely this capability that has enabled Lufthansa Technik Philippines to successfully implement the A330 cabin reconfiguration project which contributed to PAL’s achievement of their upgraded 4-star airline rating from Skytrax.
Through our satellite offices in Cebu, Clark, Davao, Palawan and Aklan, the company provides aircraft line maintenance support to domestic and international airlines.

Thai Airways International (THAI) expects to sign an agreement this month with a US logistics firm on the sale of eight used A340 aircraft worth between Bt4 billion to Bt4.5 billion, said President Sumeth Damrongchaitham.
The company is in the process of examining the contract before closing the sale deal of THAI aircraft to the private US company, he said adding that it also depends on the acceptance of the buyer. "We are studying details of the contract, especially in the area of pre-operational maintenance activities, " Sumeth said. 
In regard to THAI's plan for the purchase of 38 new aircraft, Sumeth said it had submitted the proposal to the Transport Ministry, pending consideration as a policy matter, before seeking approval from the Cabinet. 
"I would affirm that the purchase of new aircraft is quite necessary as it will raise our competitiveness. I believe the new administration will approve the plan," said Sumeth.

Singapore Airlines Engineering (SIA Engineering) is a company with a penchant for forming joint ventures, with 25 in total located across eight different countries in Asia-Pacific and North America. Last week it continued this trajectory by incorporating its line maintenance partnership with Thai carrier NokScoot for a repair station at Bangkok’s Don Mueang Airport.
Building on a partnership first announced in March of this year, which will see a 51%-49% split between NokScoot and SIA Engineering respectively, the JV will operate as Line Maintenance Partnership from Thailand’s second busiest airport.
Initially, it will service NokScoot’s fleet, which as of July, is comprised of five in-service Boeing 777-200ER aircraft and services mid- to long-haul routes to Asia-Pacific, China and India.
Over time, these line maintenance locations could grow at other airports in Thailand depending on any increases to the NokScoot fleet, which currently stands at an additional two 777s scheduled to join the fleet.
Not only does this partnership further grow the ties between Singapore and Thailand--with NokScoot itself a JV of Thai carrier Nok Air and Singapore’s Scoot, but it also adds to the maintenance infrastructure of Thailand, a country with ambitious plans to become one of the Asia-Pacific region’s MRO hubs.
Much of this activity centers on its eastern seaboard region, with Don Meaung one of three airports, along with Bangkok’s Suvarnabhumi Airport and U-Tapao Airport located near Pattaya, which are set to serve as the focal point of the country’s plans to grow capacity and better logistics links.
U-Tapao, owned by the Royal Thai Navy, is set to be transformed into an MRO hub, with a joint-venture maintenance facility between Thai Airways and Airbus set for 2022, along with plans for a specialized MRO campus in which Thailand hopes to attract repair specialists.
While Singapore will almost certainly remain as the aftermarket hub of the Asia-Pacific region, space is limited within the realms of the city-state. Thailand, sure to face competition from other regional nations benefiting from low-cost labor markets such as Malaysia, Indonesia and Vietnam, will most likely try to capitalize on this.

The Civil Aviation Authority of Thailand (CAAT) has approved a draft regulation aimed at streamlining licensing provisions for business operators in civil aviation.
CAAT director Chula Sukmanop said that the new regulation would establish a subcommittee to screen applications for civil aviation business licences as well as set up licence application and renewal procedures.
Under the new regulations, aviation business licences will be divided into two categories: air transport for commercial use for regular airlines and private charters, and aerial works of a non-passenger transport nature for small aircraft and drones.
The latter is expected to promote new aviation businesses such as scenic air tours, aerial photography and crop dusting.
The draft regulation will soon be presented to Minister of Transport for approval, after which it will be published in the Government Gazette with immediate effect.
The legislation was amended to be in compliance with the new Air Navigation Act B.E. 2497.
Chula also said that the CAAT will host the International Civil Aviation Organisation Assembly for the first time in Thailand from July 22-24 in Phuket. The event will draw 300 representatives from 192 ICAO member countries and “will be a great opportunity for the Thai aviation sector to exchange experiences and study ICAO standards for practical application”, Chula said.

A royal decree will be issued to lay down conditions for foreign parties wanting to set up maintenance, repair and overhaul (MRO) operations in Thailand, according to the Civil Aviation Authority of Thailand (CAAT).

CAAT director-general Chula Sukmanop said these conditions will include terms regarding the transfer and import of technology and  micro-investment in MRO businesses.

The decree is being mooted after the Civil Aviation Committee (CAC) invited national carrier Thai Airways International (THAI) to explain its plan to establish a 10-billion-baht MRO centre at U-Tapao airport in Rayong. 

The plan involves investment negotiations with the world's leading aircraft manufacturer Airbus. 

The decree, once it comes into effect, would set clear terms and conditions for MRO investments, according to the CAAT chief. 

The CAAT sees an MRO operation at U-Tapao as presenting ideal economic opportunities for the Eastern Economic Corridor project, the government's flagship policy.

Mr Chula said MRO businesses will create jobs and generate income for the local economy.

He said they have long-term expansion prospects as the aviation sector in Asia is booming with many aircraft being bought, especially in China where air traffic has grown significantly over the years. The aircraft also need regular maintenance. 

Mr Chula said growth in commercial aviation in Asia is expected to continue in the next two to three years. The number of air travellers is on the upswing, as are orders for new planes.

Thailand has the capability to run MRO businesses in terms of available technology and production of spare parts. 

In the future, the door will be opened to US aircraft maker, Boeing, to invest in MRO. The airports in Chiang Rai and Nakhon Ratchasima have a combined free space of over 3,000 rai to accommodate MRO facilities. The Board of Investment (BoI) has offered investment privileges such as income tax waivers and tax exemptions on imports of machinery for use in MRO businesses, says the CAAT.

A source at the Transport Ministry said the Asia Pacific accounts for 30% of the world's air traffic volume with 1,900 aircraft deployed by various airlines in the region, expected to grow by another 3,200 aircraft in the next 20 years. 

Mr Chula, meanwhile, said the CAC has approved an amendment to the criteria for issuing licences for commercial flights, other than scheduled passenger services, operated for specific purposes including crop spraying, sightseeing and photography.

He added that more personnel will be trained to make safety inspections of ATR turboprop aircraft following the International Civil Aviation Organisation (ICAO) withdrawal of its red flag early this year after finding Thailand made progress in addressing "significant safety concerns [SSCs]".

ATR plane inspectors are in short supply in Thailand and some have to be hired from a neighbouring country, he said.

Southeast Asia is building a reputation as a producer of aircraft components, parlaying jet demand from the region's low-cost carriers.
The region as a whole made the rough equivalent of $14 billion in aircraft parts and related services in 2018, fast approaching Japan's $16.7 billion or so. It is expected to become an even bigger player as global supply chains shift toward the region.
At a UMW Aerospace plant in Selangor, Malaysia, massive machinery can be seen polishing steel cylinders to a mirrorlike finish. Welders attach 44 metal blades with laserlike precision further down the production line.
These parts affect the safety of jet engines, so they must meet strict standards dictated in thousandths of millimeters.
The finished product is shipped to a Rolls-Royce factory in Singapore, along with components from Japan, the U.S. and Europe, for use in Boeing 787 engines. Rolls-Royce previously made all its parts in-house but signed on UMW as a contractor in 2015.
"We are doing better," said Rahul Kashyap, who heads the Selangor plant. "This is because of the new machines. And when we train, we train through the best method. So today, we are doing very well. The quality is as good."
Malaysia has rolled out the red carpet for overseas aerospace companies, allowing full ownership of local units and offering tax breaks. Companies including Honeywell International have set up manufacturing bases there, leading to the rise of local players like UMW. A variety of aircraft parts are now made in Malaysia, including wings and brakes.
But Singapore was the region's pioneer in the field. More than 60 foreign and domestic companies, including Rolls-Royce and Pratt & Whitney, carry out research, manufacturing and maintenance operations at a dedicated industrial park there. The government-affiliated park employs 6,000 and comes with its own 1,800-meter landing strip.
Revenue in Singapore's air and space industry, including maintenance and repair operations, totaled 11.1 billion Singapore dollars ($8.18 billion) in 2018. Malaysia's came to 14.4 billion ringgit ($3.49 billion), which the government wants to roughly quadruple to 55.2 billion ringgit in 2030.
Southeast Asia's aerospace sector earns roughly half its income from maintenance and repairs. But parts manufacturing is also a growing field.
An aircraft original equipment manufacturer would shift labor-intensive parts fabrication to Southeast Asia, "as the people there are known for good work discipline and low work hour costs," said Bjorn Fehrm of U.S.-based consultancy Leeham.
The trend is propelled in part by the rise of budget carriers. The Asia-Pacific commercial airplane market will top 17,000 deliveries through 2038, according to Boeing projections published in June -- far more than the roughly 9,000 each for Europe and North America. About 70% of Asian demand is seen coming from single-aisle models for medium-haul flights.
Naguib Mohd Nor, president of the Malaysia Aerospace Industry Association, said being close to the market is important. "There is an overarching philosophy," he said, "that being near the market where the aircraft is sold creates better chances that the aircraft will get sold."
Many airlines are government-affiliated, making them more likely to buy jets with domestically produced components.
And with aircraft increasingly repaired in Southeast Asia, there is greater incentive to make spare parts closer to those operations. Singapore Technologies Engineering delivered nearly 43,000 jet components and overhauled 167 engines in 2018.
Other countries in the region are making moves. Thailand granted preferential tax treatment to 26 parts makers and brought in Airbus to run a joint maintenance and repair facility with Thai Airways International. The Philippines aims to increase aerospace exports by more than four times from 2015 to $2.5 billion in 2022.
But the industry remains in its infancy in Southeast Asia. An airplane has about 3 million parts -- roughly 100 times as many as an automobile. To become a player in the more valuable components, the region needs to up its technological game.

Airports of Thailand president Nitinai Sirismatthakarn plans to use digital innovation to improve AoT's service and make more money. 
Two decades ago, airports were perceived purely as transportation infrastructure.
Not anymore, now they're business opportunities as much as anything else, as Airports of Thailand (AoT) president Nitinai Sirismatthakarn knows only too well.
AoT, the listed state agency which oversees major national airports, is experiencing a boom in earnings driven by huge government investment in transport infrastructure.
Last year, its profits were 25 billion baht, double those of 2014. In fact, AoT has been praised as one of the best-performing stocks in Asia.
A bullish aviation industry, the proliferation of low-cost airlines and thriving tourism industry are the driving factors, but Mr Nitinai has also been credited with being a key factor behind AoT's impressive growth.
Mr Nitinai told the Bangkok Post in an exclusive interview that the recent boom is only the beginning.
"The aviation and travel industries show no sign of abating. They will only keep increasing [in profitability] over the next five years," he said.
Last year, 140 million travellers passed through AoT's five airports, compared to 87 million in 2014.
"But profits are not the only marker of success for AoT. We need to pay heed to the quality of our services too," he said.
Mr Nitinai does not have a background in aviation or the service sector. He trained as an economist and has previously worked for both the ministry of finance and the United Nations Development Programme.
In his view, services are not just fixed rigid steps of actions to serve and impress people. "Service is a transformable act. It can be developed and adjusted to suit changing environments in order to cope with demand and make customers happier," he said.
For him, service at AoT airports does not stop at just good hospitality. "Airport services," he said, "must make use of digital innovation, to serve travellers and customers better."
For instance, AoT will launch its own smartphone application this August.
The mobile app, he said, will help travellers avoid confusion at airports, better manage their flight schedules and give them more time enjoy shopping and dining while waiting to board their flights.
"Passengers can check information like their flights and check-in counters in real time and let a 'smart map' lead them precisely to various zones in a terminal," he said.
Travellers can even consult the application on local traffic conditions to help them avoid delays on their way to the airport, Mr Nitinai added.
The app is just one of the elements of the "Anachak Digital AoT" (Digital Kingdom of AoT) project.
In the future, he said, the AoT will also have its own digital currency for use within its airports, and the application will record what they buy and give them AoT points to spend -- similar credit cards' loyalty programmes.
While travellers will enjoy convenience and privileges, AoT will be able to harvest data and consumption behaviours to create big data to sell to tourism-related businesses, like Agoda and Wongnai.
"In the future, our revenues will not only come from the real world. We'll be making money virtually too," Mr Nitinai envisaged.
But this does not mean the AoT will stop developing its physical facilities.
It is pushing ahead with its "Airport City" at the Suvarnabhumi airport, a 10-billion-baht mega-project of commercial areas covering more than 1,600 rai.
"The project is so attractive that up to 40 investors have already contacted AoT asking to invest," Mr Nitinai said.
Mr Nitinai was promoted as AoT president five years ago by the military government and is full of praise for the political stability since then.
"In terms of work style, I see myself as a sedan passenger car that can work well only on a level road. But when you travel on rough terrain, you need a tough SUV car which I think other executives are better at," said Mr Nitinai who admits he lacks the skills of a strong lobbyist.
But no matter what the future holds, Mr Nitinai, whose contract will expire in 2022, said he will focus on making AoT stronger and sustainable.
"If AoT fails in future, I will have to take a share of the responsibility. So, I'm I'm determined to make sure that doesn't happen," he said.