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

Source: https://www.youtube.com/watch?v=7FCtEdegJS0
Recap page: https://rapidrecap.app/video/7FCtEdegJS0
Generated: 2026-02-24T11:03:36.245+00:00

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## 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.

![Screenshot at 0:06: The presenter introduces the topic by showing a screenshot from an Aerospace Tech Review article stating, "Airbus says China will become world's largest afterservices market," setting the stage for the video's focus on aviation maintenance growth in China.](https://ss.rapidrecap.app/screens/7FCtEdegJS0/00-00-06.jpg)

**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.

## Detailed Analysis

Aviation afterservices market activity is shifting eastward, with China projected to lead the global sector, which Airbus forecasts will be worth $63.8 billion by 2044, more than doubling from $24.8 billion in 2025. This growth is fueled by major fleet expansion; China is expected to receive over 9,500 new aircraft in the next two decades, necessitating an additional 485,000 aviation personnel (pilots and technicians) by 2044. Hainan province is capitalizing on this trend by developing a significant MRO hub. The Hainan Free Trade Port (FTP) offers crucial incentives, including tax breaks and streamlined customs, which allow foreign carriers to avoid customs deposits and receive zero tariffs on imported repair parts, drawing global airlines. For example, a Jordanian Boeing 787-8 recently received a full heavy maintenance check in Hainan, clearing customs within hours. This one-stop maintenance model, covering inspection, modification, and painting, saves airlines significant time and money, as every extra day on the ground equals lost revenue. By the end of September (following operations starting in 2022), the Hainan base had serviced over 2,400 aircraft and repaired 60,000 components. Furthermore, Kunming in Yunnan province is constructing its own large MRO base, set to open in 2028, intended to serve South and Southeast Asia. Hainan's strategic location is also key, as flights departing from there can reach countries covering nearly 47% of the world's population within four flight hours.

### Airbus Afterservices Forecast

- China sector value rising from US$24.8 billion (2025) to US$63.8 billion (2044)
- Sector requires 485,000 additional personnel by 2044
- Expectation of over 9,500 new aircraft deliveries in next two decades

### Hainan MRO Hub Strategy

- FTP policies exempt aircraft brought in for maintenance from customs deposits
- Imported spare parts qualify for zero tariffs
- One-stop model reduces maintenance time by integrating inspection, modification, and painting

### Hainan MRO Performance (as of late Sept.)

- Serviced over 2,400 aircraft maintenance visits since 2022
- Undertook repairs of about 60,000 aircraft components
- Attracted nearly 50 domestic and foreign airlines

### Kunming MRO Development

- Largest aircraft maintenance base in Southwest China under construction in Kunming
- Base expected to open in 2028
- Will serve as an important support for aviation maintenance industry across South Asia and Southeast Asia

### Geographic Advantage (Hainan)

- Within four flight hours, aircraft departing Hainan reach 21 countries, covering nearly 47% of the world's population
- Location gives it an edge over other MRO sectors

![Screenshot at 0:06: Presenter Kevin Walmsley standing in Kunming, China, while displaying an article headline stating that Airbus predicts China will become the world's largest afterservices market.](https://ss.rapidrecap.app/screens/7FCtEdegJS0/00-00-06.jpg)
![Screenshot at 0:13: A slide from the Airbus Global Services Forecast \(GSF\) detailing the projected growth of the aviation afterservices sector in China, rising to US$63.8 billion by 2044.](https://ss.rapidrecap.app/screens/7FCtEdegJS0/00-00-13.jpg)
![Screenshot at 1:01: A slide from the Airbus GSF showing regional growth perspectives, highlighting that China's market share is projected to grow significantly by 2044.](https://ss.rapidrecap.app/screens/7FCtEdegJS0/00-01-01.jpg)
![Screenshot at 1:36: Images displayed showing aircraft inside large maintenance hangars, illustrating the MRO facilities being discussed, including aircraft from AirAsia and Myanma Air.](https://ss.rapidrecap.app/screens/7FCtEdegJS0/00-01-36.jpg)
![Screenshot at 2:55: A map highlighting Hainan's strategic location in South China, indicating its proximity to major Asian markets.](https://ss.rapidrecap.app/screens/7FCtEdegJS0/00-02-55.jpg)
