EEC and Thai Airways conclude negotiations, set 4 August 2026 signing for lease of 210-rai site, moving forward with U-Tapao MRO centre worth 10 billion baht, 50-year term, rushing application for incentives, targeting construction in 2027 and heavy maintenance services launch in 2030.
Mr. Chula Sukmanop, Secretary-General of the Eastern Special Development Zone Policy Committee (EECO), disclosed progress on the U-Tapao Aircraft Maintenance, Repair and Overhaul (MRO) Centre project, saying that discussions and agreement with Thai Airways International Public Company Limited on the conditions for leasing 210 rai of land for a 50-year contract to operate the MRO project have now been concluded. The lease agreement will be signed on 4 August 2026, with the contract start date set for 1 September 2026.
Following the resolution of the 210-rai land area issue, Thai Airways has presented the latest investment plan to its board of directors for approval, and a preliminary design has already been completed. From this point, detailed work will be carried out, with possible adjustments as appropriate, including inviting investors to participate in activities or to lease space, and submitting applications for investment incentives.
The 210-rai site is ready for handover and Thai Airways will be able to take possession as scheduled without any issue. Regarding Thai Airways' remaining concern — that if the development of U-Tapao Aviation City airport is delayed it could affect the MRO project, particularly in terms of access routes in and out of the MRO site — this can be connected to U-Tapao's existing runway, which is already in service, so there is no problem. Thai Airways estimates that the U-Tapao MRO project on the 210-rai plot will have a total investment value of approximately 13 billion baht, with a budget already set aside for the investment. Construction is set to begin in 2027 and the facility is expected to open for service in 2030 under the 50-year lease. The state will receive returns in two parts: 1. A fixed land rental rate, adjusted in line with Treasury Department rates, and 2. Revenue sharing on a stepped basis — during years 1–4, which cover the design and construction phase, only the land rental fee will be charged; revenue sharing will begin once income is generated, which is expected from year 5 onward, with the rate set at 3% for years 5–10, 5% for years 11–15, and 7% from year 15 onwards.
Thai Airways has consistently affirmed its commitment to the U-Tapao MRO investment, even as the situation in the Middle East continues to be prolonged, and has been preparing on the business side by registering two new companies: Thai MRO Group Company Limited and Thai MRO Services Company Limited. Both companies have a registered capital of 1 million baht each and a paid-up capital of 250,000 baht each, and are wholly owned subsidiaries of Thai Airways, with Thai Airways holding a 100% stake.
The plan calls for developing a smart hangar using modern technology to provide maintenance services for both Airbus and Boeing aircraft, with heavy maintenance services capable of accommodating three wide-body aircraft simultaneously, handling 110 wide-body aircraft per year and 130 narrow-body aircraft per year. The initial revenue target is 400–500 million baht per year, with projected average annual revenue growth of 2%.
