Hainan Airport Partners With Singapore ATC on Aerospace MRO

On April 14, 2024, Hainan Linong Industrial Development Group Co., Ltd.—a wholly-owned subsidiary of Hainan Airport (600515.SH)—signed a Memorandum of Understanding with Singapore-based ATC Globe Holdings Pte Ltd., according to the source article. The partnership explores establishing an aerospace maintenance, repair, and overhaul (MRO) and manufacturing supply chain ecosystem within Hainan’s free trade port.

Partnership Focus Areas

The collaboration will examine feasibility in aircraft engine maintenance support, precision aerospace component manufacturing, specialized aircraft processing services, technical talent development, supply chain coordination, and green manufacturing. ATC, described as a benchmark enterprise in Asia-Pacific aerospace, has operated for over 21 years in high-precision surface treatment, non-destructive testing, aircraft engine pipeline manufacturing, and MRO support services. The company holds international certifications including Nadcap and AS9100, and serves multinational aerospace leaders including Safran and Honeywell.

Hainan Linong’s Mission and Expansion

Hainan Linong was established in February 2023 as the unified management platform for Hainan Airport’s air logistics industry. According to the article, its mission is to explore a new air logistics model: “using airport traffic to drive air logistics industry, and using air logistics to promote regional development.” This represents a shift from traditional property rental operations to industrial ecosystem management.

The overall planned area spans approximately 28.3 square kilometers adjacent to Haikou Meilan International Airport. As of the article’s reporting, the startup zone encompasses 800 acres, of which 300 acres have been completed and are operational, according to Wang Haiyi, Chairman of Hainan Linong and General Manager of Haikou Airport Aircraft Maintenance Engineering Co., Ltd.

Special Cargo Operations Project

One completed project is the aviation special cargo super-operator facility. According to the source, the project’s core innovation is creating an efficient corridor for “large, heavy, hazardous, and cold-chain” cargo by establishing a pre-positioned cargo station directly connected to the airport runway and extending to the airport apron.

Special cargo categories include oversized items such as aircraft engines, hazardous materials including lithium batteries, ice-fresh aquatic products, and heavy freight. Project manager Zhang Haopeng explained that these items either cannot clear customs with traditional cargo or require special transport routes. The dedicated facility operates on a “dedicated station for dedicated use” model: the airport manages rapid cargo turnover, while the pre-positioned station handles special cargo. “After the free trade port’s full closure begins, special cargo products will increase, and we must achieve efficient customs clearance for all cargo types,” Zhang stated.

Free Trade Port Policy Advantages

Wang Haiyi highlighted a key policy benefit: a 30% value-added tax exemption for processed goods. This is among the most valuable provisions within Hainan’s free trade port import-export policy framework of “opening at the first line, controlling at the second line.”

Using imported Norwegian salmon and Australian ice-fresh beef as examples, products achieving 30% value-added processing and crossing the “second line” into mainland China qualify for the exemption. However, these products require rapid processing and turnover. To support this, the project built Hainan’s first designated monitoring facility for imported fresh aquatic products and the first airport meat facility. Combined with Meilan Airport’s existing imported aquatic animal and fruit facilities, this creates a “2+2” complementary port function network. In the future, ice-fresh and meat products can complete customs clearance, distribution, and processing directly within the zone.

A 400-meter underground tunnel under construction will eventually connect the pre-positioned cargo station to the airport runway. Once operational, cargo can complete all procedures—customs clearance, inspection, warehousing, processing, and departure—within 1 kilometer of arrival. “Our goal is to bring global cargo in and send national cargo out, opening a window to the world for Hainan,” Wang emphasized.

Aircraft Maintenance Industry Growth

Leveraging free trade port policy advantages, Hainan Linong has accelerated industrial chain construction and “air logistics+” industry development. In aircraft maintenance, Wang Haiyi noted that in 2019, Hainan’s free trade port had only three small hangars with basic maintenance services. A one-stop aircraft maintenance base and aircraft engine maintenance base opened in 2022 and 2023 respectively.

Benefiting from policies including zero tariffs on aircraft materials and 15% corporate income tax incentives, the aircraft maintenance industry has achieved rapid expansion. Services now span the full supply chain: major overhauls, inspections, high-end engine maintenance, and aircraft material storage. Comparing 2025 and 2023 figures, Wang provided several metrics: the maintenance industry footprint expanded from 80 acres to 500 acres; overseas aircraft maintenance business grew ninefold; and aircraft painting services doubled.

As of the reporting date, the one-stop aircraft maintenance base has completed approximately 2,800 aircraft maintenance operations. Maintenance customers now include airlines from Thailand, Vietnam, the Philippines, and other Southeast Asian and Middle Eastern markets. Aircraft painting orders are booked a full year in advance, with large maintenance bays operating at full capacity.

Cost Advantages Driving International Demand

Wang attributed the increasing willingness of foreign airlines to send aircraft to Hainan to several combined policies: zero tariffs on aircraft materials and self-use imported equipment, open seventh freedom air rights, and visa-free entry for 86 countries. These factors make aircraft maintenance in Hainan “low-cost and highly efficient.”

Wang provided a specific calculation: for auxiliary power unit (APU) maintenance—a core aircraft component—companies purchasing imported equipment in Hainan save 7% in tariffs and 13% in import value-added tax, reducing total costs by 20.9%. This amounts to approximately $600,000 in savings per unit.

Full Closure Launch

Beginning December 18, 2025, Hainan’s free trade port formally launched full-island closure operations. Wang previously wrote that this represents a historically significant milestone, marking China’s high-level opening entering a new phase. He emphasized that the core value of Hainan’s free trade port policies must ultimately be reflected in industrial implementation—converting policy into concrete action.

FAQ

What is the Hainan Linong partnership with ATC focused on?

The partnership explores establishing an aerospace MRO and manufacturing supply chain ecosystem within Hainan’s free trade port. Specific areas include aircraft engine maintenance support, precision component manufacturing, specialized processing services, technical talent development, and supply chain coordination.

How much cargo processing space is currently operational?

As of the article’s reporting, 300 acres of the 800-acre startup zone are completed and operational. The overall project area spans approximately 28.3 square kilometers adjacent to Haikou Meilan International Airport.

What policy advantage makes aircraft maintenance in Hainan cost-effective?

Multiple policies combine: zero tariffs on aircraft materials and self-use imported equipment, 15% corporate income tax incentives, open seventh freedom air rights, and 86-country visa-free entry. For example, APU maintenance savings reach approximately $600,000 per unit through tariff and import tax reductions totaling 20.9% of costs.