New Zealand commercial aircraft manufacturer NZAero has signed a Memorandum of Understanding (MOU) with Thailand based maintenance, repair, and operations organisation (MRO) Thai Aviation Industries (TAI), for the exclusive supply of parts, and collaboration to expand TAI’s MRO capability for aircraft maintenance for the Royal Thai Air Force.
The agreement will be signed during a seven-day mission led by New Zealand Prime Minister Christopher Luxon with an accompanying business delegation to Singapore, Thailand and the Philippines.
“The new multi-year agreement signed between Thai Aviation Industries and NZAero is set to triple the value of parts and maintenance exports to that market and help strengthen our relationship so that as their existing fleets are phased out, our new utility aircraft are seen as a viable replacement," said Stephen Burrows, CEO of NZAero.
“The deal will see NZAero supply a range of over 800 parts for Thailand’s CT4 Airtrainer fleet, for use in military training operations. Other Kiwi aviation repair firms will also benefit from regular maintenance contracts to overhaul engines. A single-engine could cost up to $100,000 to overhaul and Thailand has two dozen of these aircraft in use.”
Burrows says while NZ has a 50-year history as an aviation supplier to Thailand - with their air force having purchased 72 New Zealand-made aircraft and millions of dollars of parts, this is the first time an exclusive parts and service agreement has been formalised in this way.
The company stated that defence spending in Southeast Asia is expected to rise by billions of dollars in the coming years and New Zealand-designed aeronautical technology has a growing role to play in supporting the military-led humanitarian needs of its regional partners.
“New Zealand has a serious ambition to lift our relationships with this region in ways that deliver real benefits and that advance our shared security and economic interests," said Prime Minister Christopher Luxon of the agreement.
"The MOU signed by NZAero in Thailand is a great outcome on all fronts and I would like to congratulate NZAero on its success in South East Asia.”
NZAero stated that they will also look to meet with defence force decision-makers and private aviation operators in Singapore and the Philippines.