Thai Airways is preparing to sign a 50-year lease for 33.6 hectares at U-Tapao to build a THB10 billion aircraft maintenance, repair and overhaul centre, with construction due to start in 2027. The new facility is scheduled to open in 2030 and will include a smart hangar able to service three wide-body aircraft at the same time. It will handle Airbus and Boeing aircraft, including heavy maintenance work. Chula Sukmanop, secretary-general of the Eastern Economic Corridor Office of Thailand (EECO), told Thansettakij that Thai Airways International Public Company Limited was preparing to sign the lease agreement with EECO on Tuesday, August 4, 2026. Lease terms and investment plan The 50-year lease is due to begin on Tuesday, September 1, 2026. The state will receive a fixed land rental payment, adjusted in line with Treasury Department rates, plus a share of future revenue. During the first four years, when design and construction are expected to take place, only the land rent will be collected. Revenue sharing is expected to begin in the fifth year, once the centre starts generating income. The revenue share will be 3% in years five to 10, rising to 5% in years 11 to 15 and 7% from year 15 onwards. Thai Airways has already allocated funding for the approximately THB10 billion project. It has also registered a wholly owned subsidiary, Thai MRO Services Company Limited, or TMS, to oversee the maintenance operation. TMS currently has registered capital of THB2 billion, with plans to increase capital when appropriate. Capacity for 240 aircraft a year Thai Airways expects the centre to have annual capacity for 110 wide-body aircraft and 130 narrow-body aircraft. Initial yearly revenue is projected at THB400-500 million, with average annual growth of 2% anticipated. The airline says the expansion is intended to create "a new source of stable revenue", reduce business risks and help develop Thai Airways into a regional MRO hub as Southeast Asia's aviation market grows. Picture courtesy of The Nation Join the discussion? 31 July 2026
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