# Presentation: 632204

## Thailand: Aircraft & Parts Market

- U.S. Commercial Service
- U.S. Embassy Bangkok, Thailand

- www.buyusa.gov/thailand

## Aircraft & Parts Market in Thailand

- Market Overview & Size
- Two major market segments: the commercial aircraft market (75%), and the government/military market (25%).
- The size of the market is about $800 million with an estimate annual growth rate of 5% year-on-year.
- Imported products dominate the Thai aircraft and parts market.  However, volume of import may inconsistent depending on major aircraft delivery program.
- US products have the highest market share, captured about 28%, and are well received by end-users.

**Notes:**
Opportunities for sale of aircraft and parts including other related equipment in Thailand is high especially for U.S. companies, where U.S. products have the highest market share and are well received by end-users.  Major acquisitions depend on government and military budget, as well as parts needed for maintenance and overhaul of existing aircraft fleets.

The civilian/commercial users share about 75% of the total aircraft and parts consumption in Thailand, and the rest are sales to government and military, mainly to the Royal Thai Air Force. 

In terms of Mkt. Shares, market leaders are US 28%, France 12%, and UK 7%.  Others are mainly Brazil, Germany, and Japan.

## Market Trend

- The opening of the new Bangkok international airport “Suvarnabhumi” is expected to increase aircraft traffic, and to help increase demand for aircraft and parts from both commercial and military.
- By comparison, trend for future consumption by the civilian market is brighter than the military market as demand is more predictable, with higher growth potential after the opening of the Suvarnabhumi airport.

**Notes:**
Demand in Thailand for aircraft, its related parts, avionics, airframe, engine components, and maintenance/overhaul services will remain high, with the opening of the new “Suvarnabhumi” airport, and potential re-opening of the old Bangkok International Airport as well.  

As to the trend of the military aircraft and related parts, mostly relies on the government budget.  Thai military are expecting to maintain their focus on maintenance and upgrade of existing aircraft fleets with very few new aircraft procurement program.

## Best Prospects and Buyers

- Best sales prospects are:
- Aircraft and related parts
- Avionics
- Airframe
- Engine components
- Maintenance and overhaul service
- Buyers:
- Thai government and military service
- Local and regional airlines

**Notes:**
Sales prospects are aimed toward local and foreign airlines visiting Thai airports. The most active buyers on the civilian/commercial market are the flag-carrier, Thai Airways, and other emerging low-cost carriers (LCCs), including Orient Thai Airlines, Thai Air Asia, and NokAir. 

For the Thai military and government buyers, the prime buyers are the RTAF, and aviation divisions of the RTA, RTN, Thai Police, and the royal rain-making air wings.

## Market Entry

- International open-bid is widely used for large projects.
- Direct sales to end-users is quite common especially on consumable parts and supplies.
- It is advisable to partner with local agent to obtain information and advice in how to deal with buyers especially Thai military.

**Notes:**
In terms of market entry, there are many choices to enter Thai aircraft and parts market, depending on type of products and user requirements.  Commercial buyers such as airlines are familiar with general business procurement practices.  However, if you plan to approach Thai government buyers or military, we advise that you team up with a local partner or contact U.S. Commercial Service for assistance.

## Challenges and Barriers

- Challenges: Local demand for new aircraft sometimes inconsistent and hard to predict.  However, demand for consumable parts and supplies are quite stable.
- Barriers:  Certain local aviation regulations are applied on top of the normal FAA’ & ICAO’ for imported aircraft and parts.

**Notes:**
When dealing with aircraft and parts in Thailand, there are certain local aviation regulations apply, such as air operators licenses, air worthiness certificates, etc.  For any reason if you do not understand the local requirements, the US Commercial Service will be more than happy to help make connections with the Thai aviation authority concerned, for example the Dept. of Civil Aviation (DCA) under the Minister of Transport.

## Local & Regional Trade Events

- Asian Aerospace, 3-6 September 2007, AsiaWorld Expo, Hong Kong, Web Address: _[http://www.asianaerospace.com/main.asp](http://www.asianaerospace.com/main.asp)_
- Defense & Security 2007, 7-10 November 2007, IMPACT Exhibition Center, Bangkok, Thailand, Web Address: _[http://www.asiandefense.com](http://www.asiandefense.com/)_
- Singapore Air Show, 19-24 February 2008, Singapore, New Changi Exhibition Center, Web Address: _[http://www.singaporeairshow.com.sg/](http://www.singaporeairshow.com.sg/)_

**Notes:**
Speaking about trade shows that cover Thai aviation and defense, mostly are regional events such as the Asian Aerospace or Singapore Air Show.  However, if you plan to visit this region during the 3rd quarter of 2007, we recommended the Defense & Security event which will be held in Thailand in November.

## Thank you &Welcome to Thailand

- Kitisorn Sookpradist
- (_[ksookpra@mail.doc.gov](mailto:ksookpra@mail.doc.gov)_)
- Commercial Specialist

- James Golsen
- (_[james.golsen@mail.doc.gov](mailto:james.golsen@mail.doc.gov)__) _
- Commercial Attaché

- U.S. Commercial Service
- U.S. Embassy Bangkok, Thailand