An investment promotion incentive has been approved by the Thailand Board of Investment for the companies who choose Thailand as the base of the aircraft maintenance, overhaul activity, and repair. The country’s MRO expenditure has been forecasted to reach an amount of USD $10.6 billion, with engine, component, and the airframe.
If you don’t know already, the country has hosted 38 million visitors in the previous year and expects 40 million in 2019. There is no doubt that the aerospace industry is growing at a rate uniquely positioning the Kingdom.
Why do aerospace companies continue choosing Thailand as an ASEAN regional base?
Apart from the availability of a skilled workforce and the market size, the generous support of the government of Thailand is the apparent reason.
The companies, expanding to Thailand receive investment incentives like 8 years of corporate income tax exemption, and an additional 5 years of 50% reduction of the CIT rate after the period of exemption. The Board of Investment offers another 2-4 years of the corporate income tax exemption for the investment projects that are based in the Aerotropolis with the local educational institutions on workforce development initiatives.
Different aerospace brands have been in Thailand for decades now, and the country is definitely now slowing down in attracting big multinational companies. Very recently, one of the eminent aircraft manufacturers has announced their plans to set-up a new MRO facility at the U-Tapao Aircraft.
Besides, Revima, the French APU, has begun construction of a new landing gear overhaul facility in Thailand. It is to be equipped with the state-of-the-art machines and will include necessary special processes for in-house repair and overhaul of landing gears. Similarly, BOSA, a UK-based aircraft component maintenance service provider has founded a joint MRO venture, BOSA-Thayaan Aircraft Service, so as to perform line maintenance operations at U-Tapao Airport.
