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Scrapping foreign stake limit ‘will boost Thai aviation industry’


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Scrapping foreign stake limit ‘will boost Thai aviation industry’

By The Nation

 

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The move to allow wholly foreign-owned companies to manufacture aircraft and aircraft parts in Thailand will boost foreign investment in the country, said Kobsak Pootrakool, deputy secretary-general to the prime minister for political affairs.

 

The Cabinet recently approved a draft amendment drawn up by the Civil Aviation Authority of Thailand (CAAT) that will scrap the requirement for aviation-related manufacturers to be at least 51-per-cent Thai-owned.

 

The amendment is designed to boost investment in aviation manufacturing and related industries in Thailand, while boosting the country’s competitiveness as an aviation hub. The government has targeted aviation as a new so-called S-curve industry under the masterplan to attract foreign investment and technological know-how for development of the Eastern Economic Corridor (EEC) and Thailand as a whole.

 

"The amendment lifts the restriction that requires the major shareholder to be a Thai aircraft, air navigation company or Thai business, which discouraged foreign companies from investing. … But with the revision of the law, there will be more investment. Thailand will benefit and the benefits will extend from the aviation industry to the automotive industry in the future," said Kobsak.

 

The amended law prescribes the rules for technology transfer and investment privileges in three aviation industry sectors: production of aircraft, production of major aircraft components, and aircraft maintenance at Type 1 repair units (for aircraft weighing 5,700 kilograms or more).

 

Foreign businesses granted licences must maintain 80-per-cent Thai staff in their workforce for the full duration of the licence, expected to be 10 years.

 

Source: https://www.nationthailand.com/news/30389809

 

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-- © Copyright The Nation Thailand 2020-06-18
 
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49 minutes ago, steve187 said:

most of the pickups built in Thailand are ok, just chevy seems to be the lame duck, that's why or part why chevy has pulled out of Thailand and other countries, no need to blame the workmen,

Pickups are still built with two centuries old technology so it would be difficult for anyone not to build them

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1 hour ago, steve187 said:
1 hour ago, missoura said:

A few years back we bought a Chevy Captiva that was built in Thailand. I grew up with the Chevrolet brand and my thinking at the time was since the parent company was in America, the car should be good to go. It wasn't. Personally, I would be rather leery of flying in an airplane built by Thai staff...

most of the pickups built in Thailand are ok, just chevy seems to be the lame duck, that's why or part why chevy has pulled out of Thailand and other countries, no need to blame the workmen,

Not just pickups. My wife regrets buying a Chevrolet Aveo. Had the aircon repaired/replaced numerous times.

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2 hours ago, canopus1969 said:

Pickups are still built with two centuries old technology so it would be difficult for anyone not to build them

chevy struggle, maybe they are built with 3 century old technology, was 2 century tech, the flintstones car

 

Thai built cars are ok as well or are they old tech aswell

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1 hour ago, steve187 said:

chevy struggle, maybe they are built with 3 century old technology, was 2 century tech, the flintstones car

 

Thai built cars are ok as well or are they old tech aswell

Cars are built from a monocoque body – Thai pickups copy centuries old body on ladder frame/cart spring design

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3 hours ago, bluesofa said:

Not just pickups. My wife regrets buying a Chevrolet Aveo. Had the aircon repaired/replaced numerous times.

Exact same problem with my wife's Sonic! What a pain in the neck.

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5 hours ago, missoura said:

A few years back we bought a Chevy Captiva that was built in Thailand. I grew up with the Chevrolet brand and my thinking at the time was since the parent company was in America, the car should be good to go. It wasn't. Personally, I would be rather leery of flying in an airplane built by Thai staff...

Started buying Hondas and Toyotas long before coming to Thailand. Saw no reason to change when I got here. ???? 

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This protection racket should have been stopped years ago.

They have had 2 or 3 chances of being a heavy aircraft major maintenance hub but this

was the stumbling block, Where did they go 1, Singapore, 2 Malaysia 3 (cannot remember).

They wanted to come here as labour is more availablle & diligent (Yes, employed a Malaysian recently ?)

This needs to be extended to other businesses assoon as possible. I have been involved twice with 

offshore Companies that really wanted to transfer some of their operations here & in the end did not for this very reason that their board was not convinced that if working by the book they had control.

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10 years ay....  On the scoreboard there are 12 coup d'etat in 88 years and we are 6 years into the last one.   What sane board of directors wouldn't factor this in!  There are a lot of unhappy people out in the villages.  Around here they are still pizzed off that they no longer get 13.000 baht a ton for paddie thanks to former PM Taksins subsidy scheme.  Yingluck wasn't held in such high esteem...but Taksin is in the hearts of, probably, every rice farmer in the country.

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Again with the aircraft maintenance thing. There is/was an oversupply of aircraft maintenance, even based on pre-COVID run-rates. Not only doesn't that dog hunt, it needs to be put down sent to a farm upcountry. 

 

Maybe circa 2030 they can change tires at UTP?

 

Let it go.

 

 

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On 6/18/2020 at 12:56 PM, natway09 said:

This protection racket should have been stopped years ago.

They have had 2 or 3 chances of being a heavy aircraft major maintenance hub but this

was the stumbling block, Where did they go 1, Singapore, 2 Malaysia 3 (cannot remember).

They wanted to come here as labour is more availablle & diligent (Yes, employed a Malaysian recently ?)

This needs to be extended to other businesses assoon as possible. I have been involved twice with 

offshore Companies that really wanted to transfer some of their operations here & in the end did not for this very reason that their board was not convinced that if working by the book they had control.

and what is the chance that the aviation industry of China, does consider the opportunity? They are starting to produce aircraft in some numbers now but looking to the future. They could get cheap government loans from PRC, obtain lots of Chinese workers and become another Chinese Hub hanging off the Belt & Braces and string of Pearls logistic program  Only thinking out-loud BUT....

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