This has a potential of bringing in US$650 million (Bt21 billion) per year by 2023 when the first phase of the park will be operational. The park is planned to be developed in three phases, and when all of them are fully operational, it is forecast to generate $1.485 billion every year for Thailand.

Amartya De, senior consultant for public sector and government practice at Frost & Sullivan, said that acting as the project leader for this assignment, he was extremely satisfied with the response from the global aerospace community on being part of the Thailand aerospace hub.

"We are witnessing interest from major aerospace MRO and manufacturing companies from overseas. The foundation blocks of the Aerospace Industrial Estate master plan are being put under the supervision of Office of Transport and Traffic Policy and Planning under the [Transport Ministry]. The ministry is all geared up to repeat the same success in aerospace manufacturing and repair industry that Thailand has already achieved in the automotive sector."

The direct revenue impact from the Thailand Aerospace Industrial Estate could be close to $86.6 billion in a 25-year time frame between 2019-2045. Of that figure, $32.5 billion is targeted from pre-built infrastructure such as MRO hangars and component factories. The remaining land is planned to be leased out to aerospace companies depending upon their requirements.

The first phase of the Aerospace Industrial Estate is expected to be operational by 2019. Construction is expected to start as early as next year.

"Global Tier 2 aerospace manufacturers are constantly facing downward pressure from aerospace primes such as Boeing and Airbus to cut costs in their value chain, which is leading Tier 2 aerospace companies to make fresh investments in low-cost countries that have an excellent industrial base, and Thailand precisely fits the bill. Thailand's strong base and efficient labour force in automotive component manufacturing can be effectively leveraged for aerospace manufacturing," De said. However, he said aerospace companies were looking for specific business enablers related to ownership, land leasing and other issues that need to be quickly worked out, or else investors may find alternative destinations in Asean.

He added that Thailand's commercial-airline MRO spending this year is forecast to be close to $771 million, which is expected to grow to $1.35 billion by 2024.

By 2020, a large chunk of MRO spending is forecast to be spent on nearly 100 Airbus A320 and 50 Boeing B737 aircraft operating out of Thailand. Part of Thailand's endeavour is going to bringing that MRO spending back to this country, with support from overseas MRO operators setting up their bases here.

"We are also looking at the large fleet base of A320neo and B737 MAX, as regional order books are overwhelming," De said.

Originally posted here:

Frost & Sullivan sees opportunity for aerospace centre in Thailand