Core Insights - Hainan is leveraging its geographical advantages and free trade port policies to develop the aircraft maintenance industry, attracting global airlines to utilize its services [1][5]. Market Overview - The aircraft maintenance and repair market in China is projected to grow from $19 billion to $51 billion by 2043, with a compound annual growth rate (CAGR) of 5.3% [3]. - The maintenance and repair segment accounts for 83% of the entire aviation service market in China [3]. Hainan's Aircraft Maintenance Base - The Hainan one-stop aircraft maintenance base has serviced over 2,300 aircraft and completed more than 270 aircraft spray paint jobs by August 2023 [6]. - The annual output value of maintenance services increased from 370 million yuan in 2022 to an expected 820 million yuan in 2024, with projections of 916 million yuan in 2025 [6]. International Collaboration - The base has worked with over 20 international airlines, including Qatar Airways, which signed a nearly 100 million yuan contract for aircraft spray painting services [4][6]. - The base's foreign business volume is expected to grow sixfold in 2024 compared to 2023 [4]. High-End Engine Maintenance - Hainan Airlines established Haikou Guinness Aviation Engine Maintenance Company to focus on high-end engine repairs, specifically for the GEnx-1B engine used in Boeing 787 aircraft [7]. - This company is the only one in China authorized by GE to perform maintenance on this engine type, providing significant cost savings and reduced turnaround times for airlines [7]. Policy Advantages - Hainan's free trade port policies allow for significant cost savings, including a 10%-15% reduction in maintenance costs due to exemptions from deposit guarantees and tax benefits [6][8]. - The opening of the seventh freedom rights for foreign airlines in Hainan could further enhance the region's attractiveness for international flight operations and maintenance services [8][9].