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Second Aircraft Maintenance Project

New Aircraft Maintenance Facility ( U-Tapao )
Thai Airways International Public Company Limited's Technical Department currently conducts aircraft maintenance and provides services for THAI as well as customer airlines by operating 4 hangars located at Don Muang Airport, Bangkok.

Due to the increasing need to use the aircraft maintenance center resulting from a plan to increase the number of aircraft in THAI's fleet and further meet the demands of customer airlines, it has been concluded that the present center will no longer suffice. In additions, as there is no longer any space for expansion at Don Muang, a study with support from both Thai and French governments was conducted and decided upon to establish the New Aircraft Maintenance Facility. On 21 November 1995, THAI received Cabinet approval to begin construction work on the New Aircraft Maintenance Facility at U-Tapao Airport, Ban Chang District, Rayong Province. The Center will be ready to go into operation as of 1997, from which time forward the airline's Maintenance Center at Don Muang will no longer be able to accept an increased intake of aircraft for maintenance. The project development in chronological order is as follows :

 

Jully 1992 : Thai Airways International Public Company Limited signed a Memorandum of Understanding with Sogerma Socea to begin a feasibility study on the possibilities of setting up the New Aircraft Maintenance Facility. The study concluded that it should be constructed at U-Tapao Airport, Ban Chang District, Rayong Province.

30 August 1994 : The Thai Cabinet granted approval for Thai to establish a new company, the New Aircraft Maintenance Facility, located at U-Tapao Airport, in order to begin construction in the year 1996 and be complete to facilitate its first aircraft by 1997.

12 January 1995 : THAI's Board of Directors granted approval to begin the design work for the construction of the New Aircraft Maintenance Facility at U-Tapao Airport.
So that it can be completed by the year 1997 when the First Maintenance Center at Don Muang Airport will reach full capacity and will not have space for further expansion.Therefore,it was necessary to propose this project to obtain approval from the Cabinet on the amount to be invested and for THAI to be a sole shareholder, as recommended by the New Aircraft Maintenance Facility Project Development Subcommittee.

21 November 1995 : The Cabinet gave approval of the following
1. Approved of the construction of the New Aircraft Maintenance Facility at
U-Tapao Airport, at a total investment of 3,004.67 million baht.
2. Reaffirmed the Cabinet decision from
30 August 1994, whereby it was concluded that THAI would establish a new company to manage the Center. While the Center is under construction, THAI will initially hold of the new company's shares and in due time extend a public offering to the private sector both in Thailand and overseas as well as to other airlines.

12 February 1996 : THAI set up a committee to oversee the U-Tapao project and to proceed with construction in order for completion by the year 1997. Due to economic crisis in Asian region,the completion of the New Aircraft Maintenance Facility Airport has been delayed.

17 May 1996 : His Excellency Prime Minister Chuan Leekpai presided over the official opening of Thai Airways International Public Company Limited's New Aircraft Maintenance Facility at U-Tapao.

Cost of Operation Million baht

Construction

1,722.68

Tools and equipment

460.72

Personnel and training

295.45

Reserved cash

525.82


Operating Area
THAI received approval from the Treasury Department and the Royal Thai Navy to lease 150 rai of land on the northeast area of U-Tapao Airport, where the New Aircraft Maintenance Facility will be constructed and will consist of 20 buildings, among which
include :

- Aircraft parking in an area of 43,000 square meters.
-
Widebody aircraft maintenance facility ( twin hanger in an area of 24,000 square meters )
-
Workshop area made up of 18,000 square meters.
-
Management and training offices in an area of 1,409 square meters.
-
Storage space, canteen and water treatment facilities.

Capabilities
The New Aircraft Maintenance Facility will be able to conduct heavy maintenance at both C-CHECK and D-CHECK on 3 aircraft simultaneously, being 2 widebody aircraft and 1 small aircraft type.

Aircraft Types Models
Widebody aircraft types

B747, B777,A330B4, A310, A300-600, A330

Small aircraft types

B737,ATR42, ATR72,BAE146,Government and private aircraft


Services provided also include capability to repair aircraft components and accessories inside passenger cabins, which are made out of metal sheets and fiberglass such as the gallery, parts used in assembling passenger seats and other related work.

Customer Airlines
Currently, there are 3 customer airlines at the New Aircraft Maintenance Facility namely Air France, Lufthansa and Swissair.

Benefits
1. Decreases THAI's expenses as the airline will no longer need to use maintenance services overseas, which includes labor costs and material handling costs.
2. Reduces foreign currency exchange loss.
3. Creates more jobs in
Thailand, generates income into provinces by bringing about work opportunities for skilled workers and engineers.
4. Acts in accordance with the government policy to privatize state enterprises.
5. Supports and expands aircraft maintenance technology to third party work, indirectly creating a good image of
Thailand due to the service they will provide to customer airlines.

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