Editorial | Aircraft parts hub a role worth landing for Hong Kong
Hong Kong’s reputation as an aviation centre can only grow as French aeronautic services firm seeks regional base
The growth of air travel and cargo has driven parallel demand for support industries. As an aviation hub, Hong Kong airport is evidence of that. One business in increasing demand arises from the retirement of hundreds of planes each year as airline operators update their fleets – the dismantling of aircraft and recycling of parts. It is a global market projected to grow from US$8.1 billion to US$14.7 billion in the decade from 2023 to 2033.
Hong Kong is well placed to play a regional role, adding to its credentials as an aviation centre of excellence. This may happen before long, thanks to a French aeronautic services company’s plans to establish regional headquarters in Hong Kong and expand its regional presence, paving the way for the city to host the continent’s first aircraft parts processing and trading centre.
The Elior Group, a subsidiary of the Derichebourg Group, has signed a memorandum of understanding with the city’s Airport Authority to help expand its operations in Asia. Financial Secretary Paul Chan Mo-po said the MOU explored the possibility of Hong Kong providing professional services, such as aircraft dismantling, parts recycling and training. A source said Elior was expected to work with the Hong Kong International Aviation Academy to train people, creating thousands of jobs and training places.
About 400 to 450 aircraft are estimated to be dismantled and recycled globally each year. An emphasis on a circular economy and the growing reusable potential of aircraft components are also expected to drive growth in the global market over the coming years.
A single aircraft is typically made of about 800 to 1,000 recyclable parts, including metal alloys such as aluminium and titanium, and composite materials such as carbon fibre.
Derichebourg Group chairman and CEO Daniel Derichebourg said the group, which counts Airbus, Boeing and Comac as clients, was still discussing details of the Hong Kong operation with the government, including the site and the training of local personnel.