Thailand has 'aviation industry potential'

"Malaysia is a little bit ahead in terms of the market size for MRO [maintenance, repair and operations], but Thailand is not that far behind. The potential of the aviation and aerospace industry here is huge as the number of aircraft in Southeast Asia is expected to double in coming years," said Cyril Batreau, export adviser to Business France.

The French government agency seeks to advance and promote business throughout France and abroad. Airbus and Zodiac Aerospace are the two prominent French companies within the aviation and aerospace industry already operating in Thailand.

"The expected increase in the number of aircraft would generate needs in terms of maintenance especially in a touristic country, where there are a lot of flights, so the advantage that Malaysia has today is not significant when you look at what the market would be in few years," he said at the seminar on "How to become a supplier to the aviation/aerospace industry" arranged by Thai European Business Association last Friday.

Uli Kaiser, president of the association, said that according to Airbus’ research, about 29,000 aircraft deliveries are expected in the region over 15 years.

"In 2023, emerging markets are expected to account for 40 per cent of the world’s gross domestic product, 67 per cent of its population and 54 per cent of its passengers. There will be more and more people able to afford flying," he said.

"Indonesia is a country of thousands of islands where travelling via air is more convenient. One of Indonesia’s airlines has just issued its largest order for planes. More than 200 planes were requested for in one order," he said.

It is not necessary to compare the Thai and Malaysian markets at the moment as the aviation and aerospace industry in each country is still small. Once the consulting business is set up, there will be more aviation business activities in the two countries and there will be increases of demand in the region. Then it would be the time to compare.

"Thailand has a geographical advantage, as it is in the perfect middle among China, India and the rest of Southeast Asia.

"In terms of the aerospace industry, geography is very important. I think what Thailand should promote is localisation first before promoting existing technical skills, which are already very efficient here. But that is not enough," he said.

"There is a tendency for airlines to find subcontractors for their maintenance work, so this is creating many opportunities for Thai companies to enter the aviation industry," he added.

Sonklin Ploymee, director of industrial linkage development for the Board of Investment, said the BoI has been looking to promote the aviation and aerospace industry for a long time, as the country’s automobile industry is becoming mature and competitors are coming up.

"We have to produce something that is different than others," she said.

"The aviation industry is the next step that will help prolong the life of automobile operators. It is a value-added industry that will increase the competitiveness of the country," she said.

"The promotion of the aviation and aerospace industry has been on top of our priority list for a long time. We have kept it as our priority in our new strategy and we are looking to increase the incentives for the industry in the near future," she said.

The BoI has already approved one local company in the aviation and aerospace industry, which consists of more than 10 BoI-promoted foreign companies, she said.