This is a best prospect industry sector for this country. Includes a market overview and trade data
Last Published: 8/9/2019

This is a best prospect industry sector for this country and includes a market overview and trade data.
 

Overview

Thailand relies on imported aviation equipment and is a net-importer of products including aircraft, parts, maintenance services, and airport/ground support equipment.  U.S. aviation equipment and technology are well received by Thai buyers.

With the increase in number of passengers, major Thai airlines are expanding their networks, in line with the Airports of Thailand and the Department of Airports, along with undergoing airport expansion projects to enhance capacity and connectivity between small cities and the capital city and major tourist attractions.  According to the Tourism Council of Thailand, Thailand is expected to receive over 40 million tourists in 2019, a 5.5% increase from 2018.

Under a Thai government policy to develop the domestic aerospace industry, Maintenance, Repair and Overhaul (MRO) services will take center stage.  Thailand is a major player in regional aircraft maintenance and manufacturing industries.  Infrastructure facilities are in place for aircraft repair and engine overhaul services.  The major leading airlines in the country, Thai Airways, Bangkok Airways, and Thai Lion Air, have established Maintenance MRO facilities, aiming to serve their own aircraft and those of other airlines that service Thailand.  MRO activities are creating demand for aircraft parts and technical services.   

Apart from MRO, aviation-related business such as logistics, catering and land transport services will be developed.   As a result, Thailand is expected to assume a more important role as a regional hub.  Thai airlines and aviation industry are open to opportunities for U.S. aircraft parts and aerospace equipment suppliers.

Thailand’s Eastern Economic Corridor (EEC) development also includes aviation.  U-Tapao Airport development and MROs at U-Tapao are among the top five projects.  The Thai government is expected to select developers by the second quarter 2019.  EEC is targeting US$ 7 billion in investment in MROs and aviation- related industries over the next 5 years.  Other projects include high-speed rail connecting three major airports (Suvarnabhumi, Don Mueang, U-Tapao) and deep-sea port expansions complementing the EEC development.

 

 

2016

2017

2018

2019 (Estimated)

Total Local Production

 

 1,323,180

 1,537,968

 1,561,037

 1,584,453

Total Exports

 

 1,190,862

 1,384,171

 966,781

 981,282

Total Imports

 

 3,131,645

 4,261,258

 3,065,011

 3,110,986

Imports from the US

 

 1,014,002

 2,169,121

 993,682

 1,008,587

Total Market Size

 

 3,263,963

 4,415,055

 3,659,268

 3,714,157

Exchange Rates

 

31

31

31

31

Total Market Size = (total local production + imports) - exports in thousands of U.S. dollars.
 

Leading Sub Sectors

  • Aircraft and Parts (AIR)

  • Airport and Ground Support Equipment (APG)

  • Aviation Services (AVS)

Opportunities

The aviation and aerosapce-industry sectors are expected to grow rapidly in ASEAN. Thailand, centrally located in the heart of ASEAN, will benefit both from the increasing number of  tourists and foreign investors.  According to the leading operator at Airports of Thailand (AOT), Thailand’s tourism industry contributed to the growth in air passenger traffic.  Airports managed by AOT handled 139.58 million passengers in 2018, up from 129.19 million in 2017.  There were 874,999 aircraft movements (takeoffs and landings) in 2018, versus 823,575 in 2017.  Air cargo movements showed an increase of 5% in 2018 to 1.690 million tons from 1.606 million tons in 2017.

Apart from the airport expansions currently underway at several major airports. including Suvarnabhumi and U-Tapao, opportunity
exists for Maintenance, Repair and Overhaul (MRO) services.  Major Thai airlines are expecting MRO service to generate more revenues, in line with the commercial airline core business including catering and cargo services.  With the Thai Government’s aim for Thailand to become a service center in the region, government promotion of MRO activities appears in the Eastern Economics Corridor (EEC) areas.  Opportunities exist for American aviation/aerospace suppliers and service providers to sell aerospace products and services or join with local partners to develop research and development (R&D),  maintenance, repair and operations facilities in Thailand.

The product demand includes airport construction equipment, ground support equipment, aircraft and parts, Maintenance Repair and Overhaul (MRO) services, research and development, human resources (particularly pilots and mechanics), aviation safety advisory, security equipment, passenger service equipment, baggage screening, and ground support vehicles.
 

Web Resources

Ministry of Transport
Ratchadamnoen Nok Ave., Bangkok 10100
Tel. 662-283-3091, 662-282-3713
Fax: 662-280-0801

Civil Aviation Authority of Thailand (CAAT)
333/105 7 Floor Lak Si Plaza, Khmapheng Phet 6 Rd.,
Talat Bang Khen, Lak Si, Bangkok 10210
Tel: 662 568-8800
Fax: 662 568-5544

Department of Airports
71 Soi Ngarm Duplee, Tung Mahamek
Yannawa, Bangkok 10210
Tel: 662 287-0320-9 
Fax: 662 286-3373

Aeronautical Radio of Thailand Ltd. (Aerothai)
102 Ngamduplee, Rama IV Road
Tungmahamek, Sathorn, Bangkok 10120
Tel: 662 287-3531-41
Fax: 662 287-3131

Airports of Thailand Public Co., Ltd. (AOT)
171 Vibhavadi Rangsit Road
Don Muang, Bangkok 10210
Tel: 662 535 1192
Fax: 662 531 4061

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