Chalermpon Intarawong, executive vice president of the technical department, told The Nation that according to the strategic plan, the department has improved its operating processes to lower cost while expanding services to increase revenue.

With over 50 years of experiences, THAI is one of the leaders in the maintenance, repair and overhaul (MRO) of commercial aircraft.

Its technical department has over 3,000 staff providing integrated services – line maintenance, light and heavy maintenance, component and engine overhaul including tools & equipment calibration services through three major maintenance facilities – Don Mueang, U-tapao and Suvarnabhumi.

One of the big challenges for the THAI technical department is the new business model through a joint venture course.

THAI earlier signed a memorandum of understanding with Air France KLM Engineering & Maintenance for a feasibility study on joint investment in maintenance of aircraft components. THAI also signed an MoU with a European MRO leader for collaboration on maintenance of aircraft-related components.

“The department will submit a study on the joint venture with Air France KLM Engineering & Maintenance to the THAI board of directors this month for consideration. If approved, it will be the first joint venture for THAI’s aircraft maintenance service. Air France KLM Engineering and Maintenance will bring customers’ works in the region, technologies and funding while THAI will invest in facilities and equipment,” said Chalermpon.

In addition, the technical department is considering an approach by the major regional low-cost carrier to perform maintenance services on their A320 and A330 aircraft at Don Mueang Airport. Once it proves to be a |success, the THAI technical department will serve at least |120 A320 aircraft totally.

One of the Asian MRO leaders from Singapore has expressed an interest in expanding its capacity at U-tapao. This Asian MRO leader is also considering choosing THAI as maintenance base for some of its potential customers including A320 aircraft of Japan’s air carrier.

Chalermpon said that Airbus is also interested in forming a partnership with THAI. During the past two years, both parties have proceeded for a collaboration to establish the A350XWB Training Centre at Don Mueang.

This modern centre is scheduled for opening this September, which will be the first A350 training centre in Asean.

Moreover, Airbus has considered THAI to become an Airbus-approved supplier, providing MRO of A380 aircraft for Airbus’ customers.

Airbus has a strong intention to enhance the capability of THAI’s Technical Department to provide an aircraft heavy maintenace checks C-2 and C-3 of A380 and other Airbus aircraft in THAI’s fleet.

Not just aircraft, Airbus also considered to certify THAI as its approvec supplier for the MRO of components. At Suvarnabhumi, THAI has three hangar bays for A380-size aircraft.

This month, the airline started C2 checks for the first time.

Generally, there are four levels of maintenace check for carrier aircraft. A and B checks are considered as line maintenance, while C and D checks are classified as heavy maintenance. “New partnerships with OEMs [original equipment manufacturers] are among the challenges for MROs.

“OEMs such as Boeing, Airbus and Rolls-Royce are making big inroads into traditional third-party MRO markets through their after-market support,” he said.

According to the analysis, the total MRO in the air transport space for all aircraft classes is forecasted to grow from US$57.7 billion (Bt2 trillion) in 2014 to $86.8 billion in 2020, or 4.2 per cent annually.

While the MRO global market is expanding, growth is at a much faster pace in Asia and India. More than 1,400 new aircraft will be delivered through 2023, as the A320 and B737 are expected to drive the largest share of the MRO market in 2024.

Maintenance normally accounts for 10-12 per cent of total airline operating costs or about Bt18 billion-Bt20 billion a year.

In its fiscal year ending in September, the Department expects to reduce maintenance costs of Bt8 billion. It aims to increase revenue contributed from services to other airlines.

Besides Thailand, THAI provides line maintenance to carriers in Cambodia, Laos, Myanmar, India, Pakistan and Nepal.

This year, the department expects that the overseas service can generate Bt2.7 billion in revenue compared to Bt2.4 billion last year.