China launches first aircraft dismantling project

HAIKOU: The first aircraft dismantling project in the Hainan Free Trade Port was launched on Friday at the Hainan FTP One-Stop Aircraft Maintenance Base.

The project is being carried out by Grand China Aviation Maintenance Co Ltd under HNA Technic. The launch marks the completion of Hainan’s aviation maintenance value chain loop.

Aircraft dismantling was described as an important part of the aviation circular economy. The process involves taking apart retired aircraft, testing their components and refurbishing them for reuse. This allows parts and materials to be used again while bringing both economic and environmental gains and strengthening the competitiveness of Hainan’s aviation maintenance sector.

Policy and location seen as key advantages

Hainan Free Trade Port offers multiple advantages for this line of business. Hainan’s position as a southern island gives it a gateway role linking China with the Pacific and Indian Oceans, while the maintenance company involved in the project has experience in aircraft repair and modification.

Policies in the free trade port provide strong support for aircraft dismantling as well as the recycling and re-manufacturing of aviation components. Hainan FTP, described as the world’s largest free trade port by area, began island-wide special customs operations in December 2025. These measures allow freer access for overseas goods, widen zero-tariff coverage and introduce additional business-friendly policies.

The international market for repaired and re-manufactured used serviceable components is large. Hainan FTP’s zero-tariff and other import facilitation policies can help companies lower both capital and time costs when re-manufacturing parts recovered from dismantled aircraft.