U-tapao eyed as new aircraft centre choice

AVIATION

The Transport Ministry has expanded its choices for the site of a new aircraft building and maintenance centre to include U-tapao airport besides the one in Nakhon Ratchasima.

The final decision is expected in two weeks and the new centre should be running within a year, Transport Minister Chatchart Sithipan said yesterday.

The site would host private aircraft building and repair contractors.

Nakhon Ratchasima airport was previously the only option but the ministry later added U-tapao airport as another possibility.

Although the Nakhon Ratchasima airport is situated on 4,600-rai, a larger piece of land, U-tapao airport had one major advantage that makes it an equally good choice, he said. "U-tapao airport is closer to Bangkok," the minister said.

A plan is in the works to create a rail link between Don Mueang, Suvarnabhumi and U-tapao airports, Mr Chatchart added.

However, he pointed out that U-tapao airport is owned by the Royal Thai Navy which might make access to the site more complicated than at Nakhon Ratchasima airport, which is owned by the ministry's Department of Civil Aviation.

Meanwhile, the ministry is now in the process of amending the Aviation Act of 1954 to allow foreign shareholders to take bigger stakes in aircraft building and maintenance ownership, the minister said.

He said the share which foreign shareholders could legally hold would increase from 50% to 70%.

Thailand would become more attractive to potential investors in the aircraft business, he said, adding the amendment should take about six months to finish.

The minister dismissed concerns the change would unfairly benefit aviation giants like Rolls-Royce and GE Aviation.

He said the changes would equally benefit any company from any country, and noted that Japanese firms have taken a particular interest in investing in Thailand's aircraft industry.

China is now the biggest player in Asia's aircraft-parts sector, which generates about US$45 billion a year.

China is trailed by Singapore and Malaysia, Mr Chatchart said.

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About the author

Writer: Amornrat Mahitthirook
Position: Reporter






Article source: http://www.thethailandlinks.com/2012/11/30/u-tapao-eyed-as-new-aircraft-centre-choice/