Thai Airways Seeks Approval for $418m Utapao MRO Smart Hangar

Thai Airways International is seeking board approval for a major investment in aircraft maintenance capacity, proposing to spend THB13 billion (approximately USD418 million) on a new maintenance, repair, and overhaul facility at Utapao. The project forms part of Thailand’s broader strategy to strengthen its aviation ecosystem and reduce reliance on overseas maintenance providers.

According to local media reports, Thai Airways management presented the proposal to the board on January 19. The plan involves securing a 50-year lease on a 210-rai site, equivalent to around 33.6 hectares, from Thailand’s Eastern Economic Corridor office. If the board grants approval, the airline expects to finalise the lease agreement in late January or early February 2027.

Construction of the facility is scheduled to begin later in 2027, with the new “smart hangar” complex targeting an entry into service by 2030. The site is located next to the second runway at U-Tapao International Airport, which has been under construction since December 2025. Proximity to the new runway is expected to support efficient aircraft movements and long-term scalability of the maintenance hub.

Under the proposed agreement, Thai Airways would operate the facility under a revenue-sharing arrangement with the government. The airline would begin sharing revenue from the fifth year of operations, paying 3% from years five to ten, 5% from years ten to fifteen, and 7% from the fifteenth year onward. The graduated structure is designed to support the project’s ramp-up phase while ensuring long-term returns for the state.

The development plan also includes a sublease arrangement with Bangkok Airways. The carrier plans to develop its own narrowbody maintenance hangar on 30 rai, or about 4.8 hectares, within the Utapao site. Bangkok Airways is expected to invest around THB2 billion (USD64 million) in the facility, which would be capable of accommodating two aircraft simultaneously. Work on this portion of the project is expected to begin in 2027.

The proposed Utapao MRO hub is intended to address a persistent shortage of domestic heavy maintenance capacity in Thailand. As a result of limited local facilities, Thai airlines are frequently forced to send aircraft overseas for major checks, increasing costs and aircraft downtime.

Existing MRO providers in Thailand include Asian Aerospace Services, Thai Aviation Industries, and Thai Maintenance, according to ch-aviation data. However, industry participants say current capacity is insufficient to meet long-term demand as fleets expand and aircraft become more technologically complex.

If approved, the Utapao project would mark a significant expansion of Thai Airways’ technical capabilities and support Thailand’s ambition to position the Eastern Economic Corridor as a regional aviation and aerospace hub.

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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com