Hainan Free Trade Port Completes First Aircraft Dismantling
Hainan Free Trade Port (FTP) has achieved a significant milestone in its aviation services sector with the completion of its first-ever aircraft dismantling operation. The project, which involved the dismantling of an Airbus A320, was officially unveiled on June 12 at the Hainan FTP One-Stop Aircraft Maintenance Industry Base in Haikou’s Jiangdong New Area, according to Xinhua News Agency.
The operation fills a critical gap in aircraft asset disposal capabilities and establishes a complete industry closed loop encompassing maintenance, modification, dismantling, and aviation materials recycling.
A Strategic Gap Filled
Aircraft dismantling is the core link at the back end of the aviation industry chain and a key component of the aviation circular economy. The process involves the complete disassembly of retired aircraft, component inspection and refurbishment, and the recycling of aviation materials, parts, and fuselage materials. It carries significant economic value and environmental benefits.
The dismantling project was carried out by Grand China Aviation Maintenance (GCAM), a subsidiary of HNA Aviation Technology. GCAM, which has deep experience in aircraft maintenance, modification, and配套 services for both domestic and international airlines, brought technical rigor to the operation. As reported by China News Service, the project team developed a comprehensive dismantling implementation plan, safety control protocols, and environmental management procedures to ensure the work was carried out efficiently and in compliance with regulations.
A Booming Aviation Ecosystem
The one-stop maintenance base, which officially began operations in 2022, has already completed repairs on more than 2,400 aircraft, serving nearly 50 domestic and foreign airlines, according to People’s Daily. From January to October 2025, bonded maintenance trade value in the Haikou Airport Comprehensive Bonded Zone reached 47.86 billion yuan (approximately $6.6 billion), up 71.8% year-on-year.
Gu Zhilin, director of the aircraft maintenance base at GCAM, told People’s Daily that the maintenance schedule is already booked through the end of 2026. “In the past, we were waiting for planes to come to us. Now they’re lining up to get in,” he said.
The growth has been fueled by Hainan FTP’s favorable policies, including zero-tariff imports of self-use production equipment since 2021, bonded maintenance zones that eliminate deposit requirements for inbound aircraft repair projects, and customs green channels that speed up clearance. Wu Dongyang, president of Haikou Engine Service Co., noted that the zero-tariff policy alone has saved his company around 100 million yuan in tariffs on imported equipment.
Policy Framework and Forward Momentum
The aircraft dismantling milestone is a direct outcome of the “Three-Year Action Plan for High-Quality Development of Hainan’s Aviation Maintenance Industry (2026-2028),” issued in April 2026 by the Hainan Provincial Department of Industry and Information Technology. As Sohu News reported, the plan specifically identified aircraft dismantling as a gap to be filled in the aviation circular economy.
With this operation, Hainan has successfully built a complete industry closed loop of “aircraft maintenance — modification and upgrade — complete dismantling — aviation materials recycling.” This positions the free trade port as a comprehensive aviation services hub capable of managing the full lifecycle of aircraft.
Competitive Positioning and Regional Implications
Hainan is positioning itself as a regional rival to established Maintenance, Repair, and Overhaul (MRO) hubs such as Singapore, Dubai, and Xiamen. Its competitive advantages include tax-free policies unavailable in competing jurisdictions, a growing track record with international clients — including airlines from Jordan, Vietnam, and Qatar — and now full lifecycle capabilities from maintenance through to dismantling and recycling.
Qatar Airways, for instance, signed a three-year aircraft painting contract worth nearly 100 million yuan (~$14.05 million) with the Hainan base, underscoring the growing confidence of international carriers in the facility’s capabilities.
What’s Next
The successful dismantling operation is expected to attract more aviation upstream and downstream enterprises to Hainan, driving coordinated development of aviation logistics, materials trade, and maintenance services. The provincial government has signaled its commitment to further developing the aviation circular economy, with plans to expand dismantling capacity and attract additional industry players.
As Hainan’s island-wide independent customs operation — launched in December 2025 — continues to facilitate international trade, the free trade port’s aviation services sector appears well-positioned for sustained growth. The completion of this first dismantling project not only validates the feasibility of aviation circular economy development in Hainan but also sets the stage for the region to become a leading hub for aircraft recycling and maintenance services in Asia.