Aircraft repairing industry takes off in Hainan Free Trade Port

Engineers repair an aircraft in the one-stop aircraft maintenance base in the Hainan Free Trade Port, south China's Hainan province. [Photo/Zhang Mao]

At a one-stop aircraft maintenance base in the Hainan Free Trade Port (FTP) in southern China's Hainan province, rows of aircraft await inspection and repair as cross-border maintenance operations proceed efficiently. The resonant clang of tools underscores the busy yet orderly activity spanning the expansive tarmac.

"This one is from Jordan, and those two are from Vietnam. Our maintenance schedule is already booked through the end of 2026," said Gu Zhilin, director of the aircraft maintenance base, owned by Grand China Aviation Maintenance, a subsidiary of HNA Technic.

Since commencing operations, the one-stop maintenance base has completed repairs on more than 2,400 aircraft, serving nearly 50 domestic and foreign airlines.

The Overall Plan for the Construction of the Hainan FTP calls for efforts to develop international shipping and aviation hubs along the New Western Land-Sea Corridor. As one of the key projects in building the free trade port, the one-stop aircraft maintenance base officially began operations in 2022.

"It was because of the Hainan FTP's opening-up policy that the one-stop maintenance base was built," Gu said.

"At first, some foreign airlines were skeptical. They wondered if Hainan had the capability to handle large aircraft maintenance," Gu recalled. To win clients, his team actively promoted their services in the global market. In October 2022, they secured their first international order -- to repair an Airbus A320 from a foreign airline.

"The whole team worked with maximum focus, double-checking every screw's torque and every wire's connection," Gu said.

At one point, a key spare part was urgently needed. Procuring it internationally would have taken at least two weeks. "Thanks to the Hainan FTP's bonded policies, we had sufficient reserves of aircraft materials on hand, ensuring smooth progress throughout the maintenance process," he said. The team's efficiency impressed the client, who gave them a thumbs-up on the spot.

When asked about the strength of policy support for businesses within the Hainan FTP, Gu detailed concrete benefits:.

A major advantage is lowered operational costs. Companies undertaking inbound aircraft repair projects are no longer required to pay deposits, freeing up substantial cash flow. Overall maintenance expenses have been reduced by 10 to 15 percent.

Efficiency has also improved significantly. With a bonded "aerospace materials supermarket," all the required parts were available tax-free and could be accessed immediately. This greatly shortens the maintenance turnaround time.

Customs authorities have implemented new duty-free service models specifically for aircraft repair, creating green channels for both aircraft and spare parts. These measures ensure faster and smoother customs clearance for every inbound maintenance project.

These institutional innovations have turned first-time clients into regular ones. VietJet Air from Vietnam went from sending just one aircraft "to try it out" to nearly 20 aircraft for repair. Qatar Airways, satisfied with the service, signed a three-year painting contract worth nearly 100 million yuan ($14.05 million).

"In the past, we were waiting for planes to come to us. Now they're lining up to get in," Gu said with a smile.

Engineers repair an aero-engine in a workshop of Haikou Engine Service Co. in Haikou, south China's Hainan province. [Photo/Su Bikun]

Next to the one-stop maintenance base, Haikou Engine Service Co. is equally busy. Not long ago, the company successfully tested China's largest 150,000-pound thrust-class engine test stand, capable of servicing major engine types worldwide -- marking a significant leap in its engine overhaul capabilities.

"We're working to close critical gaps in the industrial chain," said company president Wu Dongyang. That determination, he explained, was made possible by the Hainan FTP's "zero tariffs on self-use production equipment" policy.

"Since the policy took effect in 2021, we've saved around 100 million yuan in tariffs on imported equipment -- real savings that allow us to focus resources where they matter most," Wu noted.

Gu has also seen the benefits of an increasingly complete industry ecosystem. "At first, we could only handle airframe maintenance. If customers needed other services, the aircraft had to fly elsewhere. Now, the surrounding area offers a full range of support services," he said.

According to Haikou customs, from January to October this year, the bonded maintenance trade value in the Haikou Airport Comprehensive Bonded Zone reached 47.86 billion yuan, a year-on-year increase of 71.8 percent. From zero-tariff imports of repair materials and production equipment to zero-tariff importation of entire aircraft, a full-fledged aviation industrial chain covering components, equipment, and complete aircraft is steadily taking shape in Hainan.

On Dec. 18 this year, the Hainan FTP will officially launch island-wide independent customs operation. With international exchanges becoming even more frequent, the skies over Hainan will grow busier than ever. "For us, that means a bigger stage," said Gu, as another international flight touched down smoothly. Turning toward the hangar, he headed back to work.

Staff members at the one-stop aircraft maintenance base in the Hainan Free Trade Port, south China's Hainan province carry out specialized maintenance on an Airbus A320 operated by Royal Air Philippines, Oct. 29, 2022. It is the first overseas aircraft maintenance project undertaken since the base began operations. [Photo/Su Bikun]