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Thailand Establishes U-Tapao Aircraft MRO Center Contract for January 2026

Thailand to Establish U-Tapao Aircraft MRO Center with Contract Signing in January 2026
BANGKOK — Thailand is advancing its strategic initiative to develop a major aircraft maintenance, repair, and overhaul (MRO) center at U-Tapao Airport, with a contract signing scheduled for January 7, 2026. This announcement was made by Chula Sukmanop, secretary-general of the Eastern Economic Corridor (EEC) Policy Committee, underscoring the government’s commitment to positioning the country as a key aviation hub in the region.
Project Overview and Strategic Importance
The MRO facility, which will occupy approximately 210 rai (84 acres) within the EEC—a vital economic development zone on Thailand’s eastern seaboard—is set to be submitted for approval to the EEC board in December 2025. Currently, large-scale MRO centers in Asia are predominantly operated by Singapore and China, highlighting the strategic significance of Thailand’s entry into this market. The new center aims to enhance the country’s aviation infrastructure and attract regional airline clients seeking comprehensive and cost-effective maintenance services.
Under the proposed framework, Thai Airways International will be granted operating rights for the entire site and is expected to establish a subsidiary to oversee the center’s operations. The airline may choose to operate the facilities directly, enter joint ventures with specialized partners, or lease space to private operators. The center will be equipped to service a broad range of aircraft, including models from Airbus and Boeing, ensuring operational flexibility and wide market appeal.
Financial and Operational Framework
The land lease for the MRO center will span 50 years, with rental rates structured to encourage early investment. Revenue sharing with the state is planned to begin in the fifth year of operations, starting at 3% for years five through ten, increasing to 5% for years ten to fifteen, and reaching 7% thereafter. This phased approach aims to balance initial development incentives with long-term fiscal contributions.
Following the contract signing, the project will proceed to detailed design and an environmental impact assessment (EIA), which will be expedited under EEC regulations. The EIA is expected to be completed within 180 days after submission of the full design documents. Construction is scheduled to commence in early 2027, with a projected duration of approximately three years. This timeline aligns with the completion of U-Tapao Airport’s second runway, which is currently under construction and anticipated to be finished within four years. Meanwhile, the passenger terminal development will continue as planned, unaffected by the high-speed rail project, thereby enabling the airport to accommodate increased passenger volumes once the new runway becomes operational.
Regional Context and Market Implications
The establishment of the U-Tapao MRO Center occurs amid intensifying competition in the regional MRO market. Neighboring countries may respond by upgrading their own facilities to attract airline clients, while airlines across Asia are expected to show growing interest in cost-effective maintenance solutions. The project’s long-term viability will also be influenced by factors such as the economic stability of the Thai Baht and broader trends in trade and tourism, which affect the region’s attractiveness as an aviation hub.
As Thailand advances this significant infrastructure project, the U-Tapao MRO Center is poised to play a pivotal role in shaping the country’s aviation industry and enhancing its competitive position within the regional market.

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