Country to Sign U-Tapao Aircraft MRO Contract in January 2026

Pictures courtesy of Khaosod 

Thailand will sign a contract on January 7, 2026 for a major aircraft maintenance, repair and overhaul centre at U-Tapao Airport, marking the most advanced stage yet for the project and setting the framework for long-term aviation industry development. The move is expected to strengthen Thailand’s position as a regional aviation hub and support expanded air traffic capacity in the Eastern Economic Corridor (EEC).

The project is overseen by the Eastern Economic Corridor Policy Committee, with secretary-general Chula Sukmanop confirming that final approval will be sought from the EEC board in December 2025. The MRO centre will occupy around 210 rai, equivalent to 84 acres, within the EEC and is designed to serve a wide range of commercial aircraft. Chula said that, in Asia, only Singapore and China currently operate large-scale MRO facilities, underscoring the strategic significance of the Thai development.

Under the agreed structure, Thai Airways International will be granted operating rights for the entire site and will establish a subsidiary to run the business. The national carrier will act as project developer and may choose to operate facilities directly, enter joint ventures with specialised partners, or lease space to private operators for specific services such as wide-body aircraft maintenance. The centre will be able to service aircraft from multiple manufacturers, including Airbus and Boeing, and will not be limited to a single brand.

The land lease will run for 50 years, with rental terms designed to encourage early investment. Revenue sharing with the state will begin in the fifth year of operations, starting at 3 percent for years five to 10, increasing to 5 percent for years 10 to 15, and rising to 7 percent from year 15 onwards. These arrangements are intended to balance investor incentives with long-term public returns.

After the contract signing, the project will move into detailed design and an environmental impact assessment review. The EIA process will be expedited under EEC regulations and is expected to be completed within 180 days after submission of the full design documents. This accelerated timeline is intended to keep the project aligned with broader airport development plans.

Khoasod reported that construction of the MRO centre is expected to begin in early 2027 and take about three years. This schedule is designed to align with the completion of U-Tapao Airport’s second runway, construction of which has already begun and is expected to be finished within four years. Development of the passenger terminal will proceed as planned and will not be delayed by the high-speed rail project, allowing the airport to handle increased passenger traffic once the new runway becomes operational.

Key Takeaways

• Thailand will sign the U-Tapao MRO centre contract on January 7, 2026, following EEC board approval in December 2025.

• Thai Airways International will hold operating rights, establish a subsidiary, and may partner or lease to specialist operators.

• Construction is planned for early 2027, aligning with completion of U-Tapao Airport’s second runway.

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 Adapted  by  Asean Now from Khaosod 2025-12-21