Scrapping foreign stake limit ‘will boost Thai aviation industry’

[webfact]

Scrapping foreign stake limit ‘will boost Thai aviation industry’

By The Nation

 

 

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

 

-- © Copyright The Nation Thailand 2020-06-18

 

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[bodga]

Pass me that Bargepole  now  would you dear.

[ukrules]

Now they're in the <deleted> they want foreign investment????

 

What happens when they change their mind in a few years time?

[Kwaynoom]

Oh, so now that they realized the airline industry isn't profitable, they say it is okay for foreigner to own a controlling interest. Maybe it will serve the foreigner best to just wait for them to do the same thing with their real estate laws.

[George Bowman]

3 hours ago, webfact said:

Foreign businesses granted licences must maintain 80-per-cent Thai staff in their workforce...

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...

[steve187]

32 minutes 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,

[BobbyL]

I wouldn't expect much to come of this. Airbus pulled out pretty sharpish and although not necessarily connected, having a near bankrupt national carrier in THAI does not look good. 

 

Then add in all the other issues in terms of unstable politics, health and safety standards, worker skills etc and any proper company doing their due diligence would walk away from this EEC 'hub' project. 

[canopus1969]

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

[ChipButty]

Thai maintained aircraft you got to be messing

[bluesofa]

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.

[Misterwhisper]

4 hours ago, ukrules said:

Now they're in the <deleted> they want foreign investment????

 

What happens when they change their mind in a few years time?

And they will.

[steve187]

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

[RichardColeman]

Think business after all this fiasco is over will be wanting to build more in their own countries, than farm out work abroad. Just a hopeful pie in the sky.

[djayz]

3 hours ago, BobbyL said:

worker skills 

"lack of" would be a more fitting description of their skill set, not to mention the lousy work attitude. 

[canopus1969]

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

[djayz]

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.

[chainarong]

Why confine this exercise just to aviation, all you're doing is copying other countries , become more inventive and think out side the square box. 

[AgMech Cowboy]

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. ???? 

[AgMech Cowboy]

Just now, AgMech Cowboy said:

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

How did we get away from talking about aircraft maintenance? 

[natway09]

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.

[JonnyF]

Excellent idea. Let's all invest in the airline industry in the middle of an unprecedented storm that just wiped out THAI airways, safe in the knowledge that once it becomes profitable again (in about a decade) the rules will change back again and we'll be kicked out to make way for the Thais to take over.

 

Where do I sign up?

[Justgrazing]

10 hours ago, webfact said:

and aircraft maintenance

This one ran off the end of the runway so they thought best paint the name out .. even though it was obvious from the rest of the livery who's plane it was .. reason for the overrun .? Have a guess .. 

 

[TallGuyJohninBKK]

9 hours ago, ukrules said:

Now they're in the <deleted> they want foreign investment????

 

What happens when they change their mind in a few years time?

 

They'll change the rules again then???  As they often are want to do...

 

[Grumpy John]

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.

[Bender Rodriguez]

how about getting THAI a foreign CAPABLE manager ?

[mtls2005]

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.

 

 

[GR8fun in LOS]

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....