Nok Air Explores Northeastern Thailand for MRO Facility with USD 41.6 Million Budget

Nok Air, the low-cost carrier based in Bangkok Don Mueang, is actively searching for a suitable location in northeastern Thailand to establish a Maintenance, Repair, and Overhaul (MRO) facility. The airline, with an initial budget of THB1.5 billion baht (USD41.6 million), is also considering potential foreign joint venture partners, according to reports from The Nation newspaper.

Wutthiphum Jurangkool, CEO of Nok Air, expressed his vision to have the MRO facility operational by 2026. The aim is to service the airline’s fourteen B737-800s in-house, streamlining maintenance operations. Jurangkool anticipates having the necessary approvals and financing in place by the first quarter of 2024.

While considering various options, Utapao Airport is reportedly not under consideration due to potential competition in the area. Thai Airways International has previously expressed interest in establishing an MRO facility at Utapao Airport, indicating robust growth prospects for maintenance services in the region. Thai Airways, in collaboration with Airbus, had originally planned a joint venture for an MRO facility at Utapao, but the latter withdrew during the pandemic. Despite this, Thai Airways and local infrastructure agencies are optimistic about capturing regional MRO business and meeting the carrier’s in-house maintenance needs.

In another significant development, Keerati Kitmanawat, President of Airports of Thailand (AOT), operator of Bangkok Don Mueang Airport, aims to invest THB800 million (USD22.2 million) in a joint venture with the Thailand-based Forth Corporation for an MRO facility. This facility at Don Mueang, in which Forth Corporation will hold a 75% stake, is poised to offer A-checks, C-checks, part maintenance, and non-destructive testing upon its opening.

The MRO growth prospects in Southeast Asia have garnered attention, with Airbus estimating the ASEAN MRO market to reach USD6.57 billion annually by 2030. Singapore is expected to lead with a 25% share, followed by Indonesia and Thailand, according to current scenarios.

As Nok Air advances its plans for an MRO facility, stay tuned for updates on the airline’s strategic moves in the evolving aviation landscape.