China Aircraft Services Limited (CASL) and France's Elior Asia have signed an MoU to set up a 50–50 joint venture focused on aircraft dismantling and parts trading, a move that positions Hong Kong as the base for what is described as Asia's first integrated sustainable aircraft decommissioning supply chain.
The MoU signed on January 29 lays the groundwork for developing what is described as Asia's first integrated sustainable aircraft decommissioning and parts‑trading hub. Based at CASL’s hangar in Hong Kong International Airport, the facility will manage the multi-stage process of retiring an aircraft, from dismantling, parts recertification and trading, to metals recycling.
(Photo: CASL, Elior Asia)
Daniel Derichebourg, chairman of Elior Group, said: "This partnership represents a ‘'riple-win' scenario. It combines Elior's unique, global-standard expertise in aircraft dismantling with the extensive network of air fleets from CNAC in Mainland China, all supported by one of the strongest local and international business partners, CK Hutchison."
He added that by bringing these strengths together, the companies will be "positioned to lead the market in sustainable aviation solutions."
Norbert Marx, chief executive officer of China Aircraft Services Limited, said, "CASL's major shareholders, CK Hutchison Holdings and China National Aviation Corporation (Group) Limited, are confident in the significant value and potential of the aircraft dismantling and parts trading industry."
"By bringing together the resources and expertise of CASL and the Elior Group, we expect strong synergies to be realised through a comprehensive one-stop platform spanning aircraft maintenance, dismantling, parts recycling, certification and trading," he added, also pointing to a 'triple-win' partnership which will strengthen Hong Kong's aviation industry ecosystem, serving Asia Pacific and global aviation customers while creating long term value and supporting the sustainable growth of the aviation industry.
Addressing the lack of decommissioning solutions
While Asia represents the world's fastest-growing aviation market, the region has historically lacked a fully integrated decommissioning solution.
CASL and Elior Asia said in their announcement that currently, leasing companies — which own 75% of aircraft in Asia — often face the inefficiency of flying retired assets to North America or Europe for decommissioning.
Furthermore, many existing regional facilities lack the necessary Continuing Airworthiness Management Organization (CAMO) certification which is essential for aircraft parts trading in the global secondary market.
The new CASL-Elior joint venture directly addresses this gap.
"By combining Elior's global expertise in sustainable aircraft decommission and recycling services, with CASL's established aviation maintenance capabilities, the facility will enable Asian airlines to decommission their retiring fleets in Hong Kong. This may also ensure high-value components will be recertified and sold into the global Used Serviceable Materials (USM) market."
The announcement noted that this "holistic, closed-loop operation" integrates four primary phases: meticulous dismantling and harvesting of high-value components; specialized repair and certification under a CAMO (Continuing Airworthiness Management Organization) framework; global parts trading focused on the APAC markets; and responsible residual material recycling. Valuable metals are recovered for reuse as assets.
"The industry's evolving strategy demonstrates that sustainable aviation extends well beyond flight operations," CASL and Elior Asia said.
"With global aircraft retirements set to reach 1,100 jets annually by 2038, and up to 90% of new-generation jets being recyclable, this venture positions Hong Kong at the forefront of the green aviation revolution."
Echoing the Hong Kong Government's vision to develop the new high-valued aviation industry, Elior Group and the Hong Kong International Aviation Academy (HKIAA) partnered in December 2025 to establish the Hong Kong Aviation Engineering Training Centre, which will train technicians to handle aircraft dismantling and certification work. The centre is intended to build local expertise to support Hong Kong’s growing role in aviation financing, leasing and decommissioning.
The signing ceremony for the new joint venture was witnessed by Vivian Cheung, chief executive officer of Airport Authority Hong Kong, Derichebourg of Elior Group, Dominic Lai, group co‑managing director of CK Hutchison Holdings, and Zhan Zhong, president of China National Aviation Corporation (Group) Limited (CNAC).
