Transcription

1 Overview on Aviation Industry and MRO&OEM in Thailand Glot Sanalaksana Quality Assurance Department Civil Aviation Authority of Thailand August 2018

2 Air Traffic Demand Conditions Fleet Forecast

3 Air Traffic in Thailand Thailand s air passenger traffic grew threefold in the past 10 years from 2006 to The growth, which was modest until 2010, took off in 2010 and has been going up at pace since then. 63 The growth in aircraft movements of 12.32% is almost 4 times the global CAGR of 3.33% from 2006 to 2016 whereas Passenger Traffic has grown at 11.64% CAGR in the same period. Source: Frost & Sullivan Analysis

4 Air Traffic Demand Conditions Fleet Forecast

5 Number of Aircrafts Thailand Fleet Forecast Thailand currently has an operating fleet of 314 aircrafts and this is expected to grow at a CAGR of 4.86% over the next 20 years to reach 811 aircrafts in 2037 Thailand Fleet Forecast ( ) 2.6X Others B777 B Existing Fleet 2017 with 4.8% CAGR Operating Fleet 2037 The growth in Thailand fleet is majorly seen due to increase in narrow body aircrafts (A320 & B737 series) by volume A380 A350 A330 A320 A319 Source: Frost & Sullivan Analysis

6 MRO Related and Supporting Industry OEM

7 New Engines of Growth MRO OEM

8 Thailand MRO Spending Major chunk of engine MRO & component MRO business goes overseas to Malaysia, Singapore, Philippines etc. Close to 60% of Thailand s MRO spending goes overseas, while the remaining 40% stays within Thailand 2017 MRO Scenario Thailand MRO Spending Growth ( ) With 5.4% CAGR 2.94 B 1.6 B 0.97B Source: Frost & Sullivan Analysis

9 Aerospace MRO Industry Output $ $24B ( ) MRO 5.4% - 9% CAGR

10 MRO Manpower Forecast Scenario 2 This includes impact of U-Tapao MRO center and component repair centers of the top 5 recommended components In total, 4,066 new jobs can be created, which include 2,711 technician and engineer jobs and 1,355 jobs in the support functions over 20 year period Scenario 3 This includes focusing on engine and airframe MRO to capture 3% market from the rest of ASEAN This can lead to the creation of additional 8,610 additional jobs, including 5,740 technician and engineer jobs and 2,870 jobs in the support functions over the next 20 years

11 Aerospace OEM Industry Output $ $57B ( ) OEM 3.7% - 5.2% CAGR

12 OEM Manpower Forecast Scenario 2 The scenario 2 assumes that Thailand can increase their global market share to 0.5% by 2037 If this can be achieved, an additional 1,184 new jobs can be created over and above the base case scenario. Scenario 3 This scenario assumes that Thailand can increase their global market share to 0.6% by 2037 This will lead to the creation of an additional 3,500 new jobs over and above the base case scenario.

13 Targeted Aerospace MRO segments CFM LEAP1A (A319/320/A321) neo CFM LEAP1B Engine MRO Airframe MRO B737MAX RR Trent 800, 1000 RR Trent XWB Component MRO B787 A350 IAE V2500 A380 Landing Gear Engine Fuel & Control IFE APU Wheels & Brakes

14 CAAT Repair Station Approval Process Pre-Application Meeting Formal Application Document Evaluation Demonstration and Inspection Certification

15 Targeted Aerospace Manufacturing segments Primes (Integration) Tier 1 (Assembly & Testing) Tier 2 (Design & Build) Tier 3 (Build to Print) Tier 4 (Material Manufacturing & Support Processes) Airframe prime Engine prime Airframe assemblies Avionics Engine components Components Assembly, Design & testing Build (Manufacturing) Components & Parts manufacturing Materials Steel Titanium alloys Aircraft Tires Composites Manufacturing support services Aerospace OEM sectors in Thailand with high growth opportunities

16 Manufacturing Standard and Certification

17 Initiatives Incentives Initiatives Regulations Initiatives Future Plans of Thai Aerospace MRO & OEM MRO OEM Pillar 1 Pillar 2 Pillar 3 Initiatives 1. Aerospace Industry Group under Federation of Thai Industry 2. National Aerospace Committees & Coordinating Office 3. Talent Development 4. Supporting Domestic Companies 5. Research & Technology Development 6. Laboratories & Certification Programs 7. Offset Policy for Aerospace Government Procurements Incentives 1. Tax based & Non tax based 2. Tailored packages 3. Financial Grants & Capital subsidies Regulation 1. Revision of Limitation on Foreign Equity Ownership <49% 2. Restriction on Aerofoils manufacturing 3. Import Duty exemptions on aircraft & related parts 4. Delays with Foreign repair station certificate 5. Bilateral Aviation Safety Agreement 6. Foreign Employment & Property Ownership 7. Conversion of Aircraft Technician License to Thai Source: Frost & Sullivan Analysis

18 Thank You