Aviation Market in ThailandWarayu PradipasenManager of Aviation Industry Promotion DepartmentThe Civil Aviation Authority of Thailand

12th February 2019

1

38 AIRPORTS

12 ATO

THAILAND AVIATION INDUSTRY IN 2017

PERSONNEL LICENSES646 Private Pilot License (PPL)2,682 Commercial Pilot License (CPL)2,807 Air Transport Pilot License (ATPL)4,829 Aircraft Maintenance Engineer License (AMEL)1,039 Air Traffic Controller (ATC)552 Flight Operations Officer (FOO)

AEROMEDICAL PERSONNEL25 Authorized Medical Examiner (AME) 27 Senior Authorized Medical Examiner (SAME)

709 AIRCRAFTS410 Commercial Aircrafts299 Private Aircrafts

2

3 ANSPs

556 ROUTES

THAILAND AVIATION INDUSTRY IN 2017

416 International Routes140 Domestic Routes

42 AOL 39 Commercial Airlines 25 Scheduled Airlines14 Charter Airlines

1 Air Cargo2 Aerial Work

245 REPAIR STATIONS213 Foreign Repair Stations32 Thai Repair Stations

3

4

THE GLOBAL AVIATION TREND

5

THE GLOBAL TREND OF AVIATION INDUSTRY

ICAO

forecasts

the doubling

growth of

air passenger

in the next

20 years

Boeing and Airbus have projected that the Asia – Pacific region RPK

will increase at 5.7% and 6% per year, which is higher than the global RPK growth rate

Source : ICAO World Civil Aviation Report 2016

Source : ACI, 2018, WATR 2018 Annual World Airport Traffic Report6

7

The Growing Trend of Aviation Industry in Southeast Asia

The RPK

in SEA

will grow

by 6.2%

per year.

Source : Current Market Outlook 2017-2036, 2016. Boeing

8

OUTLOOK ON AIR TRANSPORT IN THAILAND

Total Number of Air Passenger from 2009 – 2018

In the past 10 years, the total number of passengers has increased

by threefold.

Source : The Civil Aviation Authority of Thailand

11.9%

12.8%

11.2%

2009 to 2018

26 27 32 36 42 50 62 70 77 7732 35 42 4755 54

6570

78 83

58 6374 83

97 104127

141155 160

0

50

100

150

200

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Milli

on P

asse

nger

s

e

9

Total Number of Flight Movement from 2009 – 2018

The total number of flights has doubled, compared to that of 2009.

The increase in number of passengers is consistent with

the increase in number of flights. Source : The Civil Aviation Authority of Thailand

10.8%

9.9%

11.6%

2009 to 2018

215 238 273 307 361 424 499 551 594 578 207 223 267 286 337

345 396

428 448 485

422 461 540 593

698 768

894 978

1,042 1,063

-

200

400

600

800

1,000

1,200

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Thou

sand

s

e

10

Total Number of Air Cargo from 2009 – 2018

Source : The Civil Aviation Authority of Thailand

4.2%

4.7%

-0.9%

2009 to 2018

0.10 0.12 0.13 0.13 0.12 0.12 0.12 0.12 0.12 0.10

1.01 1.27 1.35 1.34 1.25 1.32 1.33 1.42 1.55 1.53

1.12

1.39 1.48 1.47

1.37 1.43 1.45 1.55

1.67 1.62

-

0.50

1.00

1.50

2.00

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Millio

n To

nnes

e

11

The Growing Trend of Thai Aviation Industry

Thailand air transport passengers during 2008 – 2017 grew at 10.46% per year.

It is projected to increase at 7.5% per year from 2018 to 2022 (5 years),

and it will increase at 5.6 % per year from 2018 to 2028 (10 years).

Pass

en

ger

(Mill

ion)

2551 – 2560

10.46%

2561 – 2565

7.5%

2561 – 2571

5.6%

Source : The Civil Aviation Authority of Thailand 12

Thailand Fleet Forecast

0

100

200

300

400

500

600

700

800

900

Nu

mb

er

of

Air

cra

fts

Others

B777

B737

A380

A350

A330

A320

A319

Source: Frost & Sullivan Analysis

2017

Existing

Fleet

Operating

Fleet

20372017 - 2037

2.6X

with 4.8%

CAGR

811

410

Thailand Fleet Forecast (2017 – 37)

• The growth in Thailand fleet is majorly

seen due to increase in narrow body

aircrafts (A320 & B737 series) by

volume.

• 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

13

14

AEROSPACE MRO and OEM IN THAILAND

MRO

OEM

New Engines of Growth

15

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

Source: Frost & Sullivan Analysis

Thailand MRO Spending Growth (2017-2037)2017 MRO Scenario

1.6 B

0.97B

2.94 BWith 5.4% CAGR

16

Aerospace MRO Industry Output

5.4% - 9% CAGR

$14.5 - $24B

(2017 – 2037)

MRO

17

Aerospace OEM Industry Output

3.7% - 5.2% CAGR

$47.5 - $57B

(2017 – 2037)

OEM

18

Targeted Aerospace MRO segments

Landing

GearWheels & BrakesEngine Fuel &

ControlIFE APU

(A319/320/A321) neo

B737MAX

B787

A350

A380

CFM LEAP1A

CFM LEAP1B

RR Trent 800, 1000

RR Trent XWB

IAE V2500

Airframe

MRO

Component

MRO

Engine

MRO

19

Targeted Aerospace Manufacturing segments

Primes(Integration)

Tier 4(Material

Manufacturing & Support

Processes)

Tier 1(Assembly & Testing)

Tier 3(Build to Print)

Tier 2(Design & Build)

• Airframe prime• Engine prime

• Airframe assemblies• Avionics• Engine components• Components

• Components & Parts manufacturing

• Materials

• Steel

• Titanium alloys

• Aircraft Tires

• Composites

• Manufacturing support services

• Assembly, Design & testing• Build (Manufacturing)

Aerospace OEM sectors

in Thailand with high

growth opportunities20

The EEC announcement to allow 100 percent foreign ownership of company engaged in aircraft manufacturing, parts manufacturing, and maintenance, repair and overhaul.

In the case of a person which the operation area in EEC promotion zone applying for 1) Production Certificate for Aircraft, 2) Production Certificate for Major Aircraft Appliances, 3) Repair Station Certificate

has registered capital belong to a person holding Thai nationality less than 51% and business management power is not controlled by a person holding Thai nationality,

require to present the information on 2 issues1. Technology level which present how necessary for Thai aviation industry development2. Technology transfer plan and Thai human resource development plan

21

Thank YouAviation Industry Promotion DepartmentThe Civil Aviation Authority of Thailandwww.caat.or.th

22