China's Hainan FTP starts first aircraft dismantling project on June 12, 2026. Photo: Courtesy of Grand China Aviation Maintenance Co

The Hainan Free Trade Port (FTP) has launched its first aircraft dismantling project, marking a new milestone in the island's aviation maintenance sector and strengthening the region's aircraft asset disposal capabilities, injecting new momentum into the high-quality development of the regional aviation industry, according to the relevant company and industry analysts on Sunday. 

The aircraft dismantling project was at the Hainan FTP One-Stop Aircraft Maintenance Base in Haikou, South China's Hainan Province. It is the first full-aircraft dismantling business carried out in Hainan and is seen as an important step in building a more complete aviation maintenance ecosystem in the free trade port, according to industry observers.

The project was undertaken by Grand China Aviation Maintenance Co, a subsidiary of HNA Technic, according to the Xinhua News Agency.

With the addition of aircraft disassembly services, the Hainan FTP has established a closed-loop aircraft maintenance industry chain covering aircraft repair, modification and upgrading, disassembly, and aviation materials recycling, further expanding the FTP's aviation industry ecosystem, Grand China Aviation Maintenance Co said in a note sent to the Global Times on Sunday.

Aircraft dismantling is considered a core downstream segment of the aviation industry and an important part of the circular economy. By dismantling retired aircraft, inspecting and refurbishing reusable components, and recycling fuselage materials, the process can generate both economic and environmental benefits while improving the competitiveness of Hainan's aviation maintenance sector, said Xu Jiajing, a representative from Grand China Aviation Maintenance Co.

Xu told the Global Times on Sunday that the one-stop facility functions like an "aircraft 4S shop," offering services comparable to those of an automobile 4S center, including airframe maintenance, component repair, and full-body painting.

Prior to this project, the Hainan FTP had been providing bonded maintenance services for overseas aircraft on a regular basis, accumulating extensive experience in aviation operations and maintenance, Xu noted.

Since beginning operations in 2022, the Haikou one-stop aircraft maintenance base has completed maintenance work on nearly 3,000 aircraft, completed full-body painting for over 350 aircraft, and repaired about 74,000 aircraft components as of the end of May this year. The base has attracted more than 50 clients from both China and overseas. Meanwhile, overseas aircraft maintenance orders are expected to exceed 100 in 2026.

"The aircraft models coming here for maintenance are also very diverse, ranging from narrow-body Airbus A320s and Boeing 737s to wide-body Airbus A330s and Boeing 787s," Xu said. 

Wang Haiye, director and general manager of the aircraft maintenance industrial base, told the Global Times on Sunday that Hainan FTP's favorable policies have created more market opportunities for the aviation maintenance industry. Aircraft entering the region for maintenance can benefit from preferential FTP policies, including exemption from cash deposits, duty-free fuel and bonded maintenance supplies, Wang said.

"These advantages can help airlines save 10 percent to 15 percent in maintenance costs," Wang said.

This dismantling project helps Hainan build a complete aviation maintenance chain, covering aircraft maintenance, modification and upgrading, full-aircraft dismantling, and aircraft parts recycling. This integrated model is expected to enrich the island's aviation industry and support its shift toward higher-end, full-chain, and circular development, according to Wang.

As Hainan enters a new stage of island-wide special customs operations, the move is expected to further unleash the potential of the province's aviation supply chain and highlight the advantages of "Made in China" maintenance services, she added.

The global market for repaired and re-manufactured used serviceable components is vast, according to Hu Qimu, a professor at the Maritime Silk Road Institute of Huaqiao University. He noted that Hainan's strategic location, together with the growing density of Haikou's international air network, is helping drive rapid growth in high-end aviation maintenance. 

"Hainan's policy incentives are strong, customs procedures are simplified, personnel movement is freer and more convenient, and zero-tariff spare parts can be supplied quickly," Hu told the Global Times on Sunday.

With repair, modification, dismantling, and component recycling now available across the value chain, Hainan is expected to attract more upstream and downstream companies, including those involved in aviation logistics, aircraft parts trading, and maintenance services, according to an official at the Jiangdong New Area Administration Bureau in Haikou city.

The new efforts to boost the island's aviation maintenance industry form an important part of the initiative to cultivate and develop the high-tech sector.

By 2030, the added value of Hainan's high-tech industries is expected to account for about 20 percent of GDP, with the revenue scale exceeding 1 trillion yuan ($147 billion), the province said in its high-tech industrial development plan during the 15th Five-Year Plan (2026-30) period released on Tuesday.

The plan vowed to optimize five "ten-billion-level industrial clusters," including clean energy, new energy vehicles, maintenance and remanufacturing, low-altitude economy, and Nanfan seed-breeding industry.

The State Council, China's Cabinet, approved the establishment of the Haikou Airport Comprehensive Bonded Zone in 2021 to develop businesses such as bonded aircraft maintenance, bonded aircraft engine maintenance, bonded aircraft leasing, and logistics services for bonded aviation materials, Xinhua reported.

Haikou Meilan Airport Customs oversaw bonded maintenance operations for 34 aircraft, 4 aircraft engines and 23 batches of aviation materials at the zone in the first three months of 2026, with a total value of 17.15 billion yuan, up 15.9 percent year-on-year, per Xinhua.