More global airlines using province as MRO hub

A Boeing 787-8 operated by a Jordanian airline has become the latest widebody aircraft to undergo a full heavy maintenance check in South China's Hainan Free Trade Port, highlighting how tax breaks and streamlined customs are drawing foreign carriers to the fast-growing aircraft repair hub.

The aircraft arrived at Haikou Meilan International Airport this week and cleared customs within hours under a pre-approval system, before being towed into a hangar at the FTP's one-stop aircraft maintenance base for a 66-day overhaul and cabin refit. The base is operated by Grand China Aviation Maintenance Co, a subsidiary of HNA Technic Co Ltd.

As China advances the development of Hainan FTP, experts said the combination of tax incentives, regulatory openness and an integrated industrial chain — from airframes and engine overhauls to component repairs and material supplies — is turning Haikou into a new node in the global maintenance, repair and overhaul (MRO) network, industry experts said.

Inside hangars, jets from Qatar, Thailand, Vietnam and South Korea were lined up for servicing. Pointing to aircraft parked in the hangar, Yang Wenbo, deputy director of the aircraft maintenance base, said overseas business has surged.

"The number of foreign-registered aircraft we serviced in the first half of last year nearly matched the total for all of 2024," Yang said.

More than 400 tasks are scheduled, including a 12-year heavy check, landing gear replacement, cabin refurbishment, installation of an air-to-ground connectivity system for in-flight internet, and a full repaint.

Hainan's FTP policies are central to the pitch. Aircraft brought in for maintenance are exempt from paying customs deposits, while imported spare parts used in repairs qualify for zero tariffs.

"These two policies alone can help airlines reduce overall maintenance costs by roughly 10 to 15 percent," said an official with the Haikou Jiangdong New Area. "For carriers operating on thin margins, that difference is significant."

Time savings are another selling point. Under the one-stop model, heavy checks, modifications and painting can all be completed within the same complex, avoiding the need to ferry aircraft between multiple locations.

"Every extra day on the ground is lost revenue for an airline," Yang said. "By integrating inspection, modification and painting in one place, we help customers turn efficiency directly into profit."

He likened the complex to a one-stop auto service center. Yang said: "What a car dealership's service center does for maintenance and repairs, we have equivalent segments here — heavy airframe checks are like scheduled deep servicing, component repair is like fixing auto parts, and full aircraft painting is similar to changing a car's exterior finish."

Since operations began in 2022, the one-stop maintenance base has completed more than 2,400 aircraft maintenance visits and served nearly 50 domestic and foreign airlines, Yang said.

Beyond airframe work, Hainan is pushing into higher-value engine maintenance. A joint venture engine facility in the airport bonded zone has built a high-thrust engine test cell capable of handling large civil turbofans.