U-TAPAO, THAILAND – Thai Airways is making good on its plan to turn the airport into an aviation hub. On Tuesday the airline signs a lease for a massive maintenance centre at U-Tapao airport. The 10-billion-baht project aims to push Thailand to the forefront of Southeast Asia’s booming maintenance market.
The agreement covers a 33.6-hectare plot. Chula Sukmanop, secretary-general of the Eastern Economic Corridor Office (EECO), confirmed the signing is set for 4 August 2026. The lease runs for 50 years starting 1 September 2026.
New heavyweight in aircraft maintenance
Thai Airways set up a subsidiary for the project. Thai MRO Services Company Limited, or TMS, will run the maintenance, repair and overhaul operations. Its registered capital is already 2 billion baht and will increase later.
The centrepiece is a “smart hangar” packed with the latest tech. It will handle heavy maintenance for both Airbus and Boeing aircraft.
Cash windfall for the state through revenue sharing
The Thai government gets paid two ways. First, a fixed land rent based on rates set by the Ministry of Finance. Second, a sliding cut of the centre’s revenue.
That revenue share kicks in from year five, when the first income comes in. From years 5 to 10 it is 3 percent of turnover. From years 11 to 15 it rises to 5 percent, and from year 15 onward it hits 7 percent.
Construction starts 2027, opening 2030
Thai Airways pegs the total investment at roughly 10 billion baht. Funding is already locked in. Construction is due to start next year, 2027.
The MRO centre is scheduled to open in 2030. Only the land rent gets paid in the first four years while planning and building dominate.
Three wide-body aircraft fit in the hangar at once
The facility is built for size. Three wide-body aircraft can be serviced simultaneously. Annual capacity stands at 110 wide-body and 130 narrow-body jets.
Thai Airways targets an initial annual revenue of 400 to 500 million baht. The company expects average growth of 2 percent per year after that.
The plan: regional maintenance hub
With this move, Thai Airways wants to open a new, stable revenue stream and spread its business risk wider. The long-term plan goes far beyond its own fleet.
The goal is to establish U-Tapao as a regional MRO hub and strengthen our position in the Southeast Asian aviation market.
said a Thai Airways representative.
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