Thai Airways' rebuilding plan hits turbulence from Airbus

European aircraft maker balks at maintenance yard project

20200408N Thai Airways

The coronavirus pandemic is leaving planes grounded across Asia, in a potential blow to Thai Airways' plans to offer maintenance. (Photo by Akira Kodaka)

YOHEI MURAMATSU, Nikkei staff writer

BANGKOK -- Thai Airways International's plan to open an aircraft maintenance yard in eastern Thailand is in jeopardy after partner Airbus missed a March deadline to submit a contract proposal, putting the carrier's path to reconstruction in question.

The two companies agreed in 2017 to build a maintenance, repair and overhaul facility at U-Tapao International Airport in Rayong Province, servicing mostly low-cost carriers. The plan originally called for operations to begin last year, but the project was repeatedly delayed.

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