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China Airlines to establish aircraft maintenance company January 2015
Taiwan News, Staff Writer
2014-08-14 12:03 PM

Bullish on the aircraft maintenance market, China Airlines (CAL) will establish an aircraft maintenance company in January of next year. This venture will be 100% owned by CAL with capitalization of NT$1.35 billion.

In consideration of the gradual introduction of a new fleet of 777 and A350 aircraft, CAL will expand its maintenance hangers. Thus, CAL’s board resolved to approve the establishment of an aircraft maintenance company in addition to CAL’s existing maintenance department to expand into the maintenance business. In addition to maintaining CAL’s fleet, the company can also expand maintenance services to cover other airlines in the Asia Pacific region.

CAL indicated, new hangers to be used exclusively by the aircraft maintenance company are expected to be ready in 2017 and will focus on the maintenance of next-gen civil aviation aircraft models and other new aircraft models. Before completion of the new hangers, the aircraft maintenance company will use CAL’s existing hangers.

According to TEAM SAI 2014 forecasts, global aircraft maintenance expenditures in 2014 will total approximately US$57.7 billion. By 2024, the global aircraft maintenance market is expected to leap to NT$86.9 billion or an average 10-year compound growth rate of 4.2%. The aircraft maintenance market in the Asian region is expected to grow from US$10.6 billion in 2014 to US$17.2 in 2024 for a 10-year compound growth rate of 5%. The 10-year compound growth rate of airframe maintenance is expected to be as high as 5.7%.

CAL stated, Taiwan possesses the advantage of central location in East Asia and the quality of Taiwanese manpower is very competitive internationally. Establishing an aircraft maintenance company in conjunction with government policies promoting the development of airport and hanger facilities coupled with comprehensive domestic maintenance resources has high potential for future development.

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