The aviation industry is shifting to Asia-Pacific. China is already building the repair hubs.

Quick Overview

China is rapidly becoming the world's largest aviation afterservices market, projected to be worth over $63.8 billion by 2044, driven by massive fleet growth requiring nearly 485,000 additional personnel by 2044, with Hainan province establishing itself as a major maintenance, repair, and overhaul (MRO) hub due to tax breaks and streamlined customs.

Key Points: The global aviation afterservices market center is shifting eastward, with China expected to become the world's largest sector, growing from $24.8 billion in 2025 to $63.8 billion in 2044. China's aviation industry will require an additional 485,000 personnel, including pilots and technicians, by 2044 to support growth, which includes an expected delivery of over 9,500 new aircraft in the next two decades. Hainan province is becoming a key MRO hub because its Free Trade Port (FTP) policies offer tax breaks and streamlined customs, allowing foreign carriers to avoid customs deposits and qualify for zero tariffs on imported repair parts. Hainan's MRO facilities, such as the one in the capital Haikou, offer time savings by completing heavy checks, modifications, and painting in one stop, reducing aircraft ground time. Since operations began in 2022, the Hainan FTP One-Stop Aircraft Maintenance Base completed maintenance on over 2,400 aircraft and repaired about 60,000 components by the end of September (article date October 17, 2023). Kunming, Yunnan province, is also constructing its own large aircraft maintenance base, set to open in 2028, which will serve as a major hub for South and Southeast Asia. The geographic location of Hainan allows aircraft departing from it to reach 21 countries and nearly 47% of the world's population within just four flight hours.

Context: This video segment, titled 'Inside China Business,' focuses on the significant eastward shift in the global aviation afterservices market, concentrating on the growth trajectory of China and the strategic development of Maintenance, Repair, and Overhaul (MRO) hubs in provinces like Hainan and Yunnan. The discussion is supported by data and forecasts from Airbus's Global Services Forecast (GSF) report, highlighting the massive economic potential and the corresponding demand for specialized aviation personnel.