Hong Kong's New Aircraft Recycling Hub Targets Asia's $11B Market
Key Points
- 1The Aircraft Engineering Training Centre, a joint venture between HKIAA and Elior Group (Derichebourg), launched on December 18, 2025, to train technicians in aircraft dismantling and recycling.
- 2Hong Kong aims to become Asia's leading aircraft recycling and parts-trading hub, capitalizing on the Asia-Pacific region's fastest-growing market, projected to exceed 10.6% CAGR by 2033.
- 3The initiative is expected to create high-value, high-skill aviation jobs and drive growth in related sectors like insurance, financing, and aircraft leasing, which is supported by Hong Kong's preferential tax regime.
- 4Elior Group plans to secure space for full dismantling and recycling operations by the third quarter of 2026, aiming to cover the entire commercial aviation life cycle in Hong Kong.
The global commercial aviation industry is expanding. Successful aviation centers must support this growth. Hong Kong is now developing the business of retiring aircraft. This move rounds out the year with significant progress.
Hong Kong International Airport (HKIA) is now home to a new training center. This facility will train technicians in skills like plane dismantling and parts recycling.
Launching the Training Centre
The Aircraft Engineering Training Centre officially launched on December 18, 2025. It is a joint venture between the Airport Authority’s Hong Kong International Aviation Academy (HKIAA) and the French aeronautical services company, Elior Group. Elior Group is a subsidiary of the Derichebourg Group.
Hong Kong Chief Executive John Lee Ka-chiu hailed the opening. He called it a “major step” toward becoming a regional leader. The city aims to be a hub for aircraft recycling and parts trading. Lee stated Hong Kong can "build a flourishing regional service supply chain." This will create "high-value jobs" requiring greater skills and offering better pay.
Elior Group Chairman and CEO Daniel Derichebourg emphasized training local talent. The company established its Asia headquarters in Hong Kong in March. The center is currently based at the China Aircraft Services hangar at Hong Kong International Airport. By 2028, the academy plans to train 1,000 students annually. Trainees will come from Hong Kong, mainland China, and Southeast Asia.
Capturing the Full Aviation Life Cycle
Aircraft decommissioning is currently dominated by Europe and the United States. However, the Asia-Pacific market is growing rapidly. Commercial airlines in the region are expanding and upgrading their fleets. This growth positions the Asia-Pacific as the fastest-growing market for aircraft recycling. The regional market is projected to grow at a Compound Annual Growth Rate (CAGR) of over 10.6% from 2025 to 2033. The global aircraft recycling market is expected to reach over $11 billion by 2033.
- The new facility can extract millions of dollars in value.
- High-value components like engines and landing gear are recovered.
- Metal and other scrap materials are then recycled.
Elior Group is working to secure dedicated space for dismantling and recycling operations. This facility is expected to be operational by the third quarter of 2026. Elior Asia CEO Janet Cheung noted the company’s global structure. Its French base assembles aircraft for companies like Airbus. Its German and Spanish arms focus on recycling. This model suggests Hong Kong could potentially handle a plane’s entire commercial aviation life cycle.
Policy and Economic Opportunities
Chief Executive Lee highlighted the project's role in developing related industries. These include trading, insurance, financing, and leasing. To further boost the industry, Cheung suggested exploring tax breaks. She also mentioned international agreements for aircraft leasing. Leasing is a major source of aircraft for carriers.
Hong Kong has already enhanced its aircraft leasing preferential tax regime. The regime offers a concessionary tax rate of 8.25%. Recent enhancements, enacted in 2024, allow for a one-off 100% deduction of the acquisition cost for new aircraft. This is intended to make Hong Kong more competitive with other global leasing hubs. The new training center and Elior's investment place Hong Kong on a path to seize these opportunities. Continued guidance and support from authorities and industry players will be critical for this journey into end-of-life aircraft management. For more commercial aviation news, visit flying.flights.
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