Meilan Airport Aircraft Maintenance Base

1. Positioning

Through the effect of industry agglomeration and a good business environment, establishing an international aircraft maintenance center for Asia-Pacific area. Moreover, providing variety aircraft service for both domestic and global airlines.

2. Planning Site Selection and Land Use Scale

This maintenance base will be located between southeast Meilan airport and east side of China Southern Airlines base, in the City of Haikou. Planed occupied an area of 147,000 square meters with 150,000 square meters construction area. It is planned to build overhaul and regular inspection hangars, painting hangars (wide-body painting, narrow-body painting), accessory maintenance workshops (main building, secondary building), international aviation materials storage and trading center and other facilities as well as various production supporting facilities in this base.

Figure 1. Location map

3. Investment Scale and Construction Period

Total capital cost will be 1.63billion yuan

Table 1. Construction schedule

4. Goals and Targeted Investors

(1) Goals

The one-stop aircraft maintenance base project will integrate the existing HNA No. 1 and 2 hangars, China Southern Airlines hangars, and the airside stock land in China Southern Airlines base (new maintenance hangars). A total of 6 hangars will provide 8 wide-body aircraft or 33 Narrow-body aircraft maintenance lines form an international aircraft maintenance industry cluster with a total area of 387,000 square meters.

After the project is completed, this base will have 47% of exceed maintenance capabilities to expand the maintenance market in the Asia-Pacific region, serve domestic and global airlines, and  expand the international route, increase aircraft maintenance business of general aviation and military aircraft business.

Under the preferential Hainan Free Trade Port Policy, aircraft maintenance costs will be reduced. Aircraft maintenance base will become a multi-directional multi-business, multi-channel international one-stop aircraft maintenance global industry platform for both military and civilian usage.

(2) Targeted Investors

★Introduce domestic and foreign well-known third-party aircraft maintenance MRO+OEM enterprises to form an industrial cluster；

★Attract upstream and downstream related companies in aircraft maintenance to create the entire aviation industry chain；

★Hold aviation conference, exhibition and competition；

★Attract international famous university with aviation major for cooperatively running schools with local Universities；

★Introduce famous aviation research and development institution to set up R&D center.

5. Analysis of Strengths

(1) Preferential Policies

★Maximum personal income tax of 15 percent for eligible talents.

★Corporate income tax of 15 percent on encouraged industrial enterprises.

★Foreign company can set up Sole proprietorship aircraft maintenance companies or joint venture companies in Hainan Free Trade Port to interact with domestic and foreign businesses with less limitation.

★The aircraft maintenance in Meilan airport tax free zone will be exempted import duties, import VAT and consumption tax. Under Zero-Tariffs policy company will save 25% tax cost (10% tariffs and 13% VAT)

★Rules of Origin: For the encouraged industries, products processed in Hainan with an added value of over 30% is entitled to exemption from duties when entering the mainland.

(2) Unique Geographical Advantage

Firstly, Hainan airline’s global headquarter is located in the city of Haikou. Hainan airline (HNA) own 224 aircrafts, it have the largest cross-border fleet in China. HNA ranked 5 star airline company for 9 times, it also ranked No.7 for the best global airline companies, ranked No.3 for the safest global airline companies.

Secondly, there are 500 Multiple international routes connecting world wide. The aviation maintenance industry in the Airport Economic Zone of Jiangdong New Area is expected to have an annual output value of about 5 billion yuan, and the tariffs free maintenance market is huge

6. Location information

Airport Economic Area will be next to Meilan international airport in the city of Haikou. Northeast from Guiling avenue to Haiwen highway, west from Lingshan avenue to Haiyu avenue. Total area is 5052.6 hectares with 1962.7 hectares international airport occupation land.

7. Construction planning

The planned urban construction land scale of the Airport Economic Zone is about 15.1 square kilometers, with a total construction area of 11.113 million square meters, including 4.867 million square meters of business, commercial and entertainment construction area, 3.653 million square meters of supply chain warehousing industrial construction area, and 2.593 million square meters of other construction areas Meter. Construction area divided into 13 categories and 16 functional areas: comprehensive aviation hub, aviation headquarters area, aviation financial area, aviation maintenance/air transfer area, international logistics area, regional logistics area, free trade logistics area, international exhibition area, free trade service area, market trading area, region of consumption, tourism area and so on.

Contact

Haikou JiangDong New Area Administration

Tel: 0898-68603376