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Aviation

Overview

Aviation (AIR, APG, AVS) Market in Hong Kong Unit: USD thousands

 

2011

2012

2013

(estimated)

2014

(estimated)

Total Market Size

1,732,877

2,091,388

1,380,000

1,690,000

Total Local Production

0

0

0

0

Total Exports

331,076

262,112

220,000

210,000

Total Imports

2,063,953

2,353,500

1,600,000

1,900,000

Imports from the U.S.

1,471,215

1,267,980

810,000

1,100,000

Exchange Rate: 1 USD

7.8

7.8

7.8

7.8

Total Market Size = (Total Local Production + Total Imports) – (Total Exports)
Data Sources:
Total Local Production: Hong Kong Census and Statistics Department
Total Exports: Hong Kong Census and Statistics Department
Total Imports: Hong Kong Census and Statistics Department
Imports from U.S.: Hong Kong Census and Statistics Department

Hong Kong’s market for aircraft and aircraft parts has shown significant growth in the past few years due to an increase in aircraft movement, passenger numbers and cargo volume. In 2012, Hong Kong International Airport (HKIA) handled 56.5 million passengers, 4.03 million tons of cargo and 352,000 flight movements. Hong Kong, despite being an international hub with over 100 airlines operating extensive flight connections to 180 destinations worldwide (including 45 mainland China cities), has only one airport. As a result, the Airport Authority Hong Kong (AA) is proposing to build a third runway to cope with the expansion of air traffic in Hong Kong.

There are no aircraft, engine, equipment or component manufacturers in Hong Kong; all of these items are imported. Most of the end-users purchase mainly from original equipment manufacturers (OEMS), distributors or the service market. Local aircraft-related distributors, in general, also sell to other markets in Asia, especially mainland China.

There are no barriers to market entry for most products, except defense items. There are also no tariffs on aviation products. Purchase decisions are usually based on quality, price and delivery schedule. However, FAA certificates or the equivalent must be provided for all items. The Airport Authority Hong Kong and government departments (e.g. Government Flying Service, Civil Aviation Department) make purchases through tender selection. For high-value purchases, the Central Government Tender Board makes the selections.

Sub-Sector Best Prospects

  • Air traffic control use simulators
  • Consumable aircraft parts and expendable items
  • Business jets and related services
  • Training for air traffic controllers and maintenance personnel
  • Devices to improve aircraft safety management

Opportunities

With global economic uncertainty and rising operational costs, both legacy airlines and low-cost carriers are outsourcing to Maintenance Repair Overhaul (MRO) operators. Therefore, MRO operators have become major buyers of aircraft parts and ground support equipment.

The major MRO operators in Hong Kong are: Hong Kong Aircraft Engineering Co. Ltd. (HAECO), China Aircraft Services Ltd (CASL), Jet Aviation- Hong Kong and Pan Asia Pacific Aviation Services (PAPAS).

Airframe & Engine MRO in Hong Kong

  • Aft – Airframe heavy maintenance
  • Eng – Engine & APU maintenance
  • Com – Component / systems maintenance
  • Avi – Avionics maintenance
  • Rep – Repair services
  • Int – Aircraft interiors MRO
  • Mod – Aircraft modification ; pax to freight conversion; winglet installation
  • Hel – Helicopter MRO
  • Line – Aircraft line maintenance
  • Bus – Corporate aircraft maintenance

Company

Afr

Eng

Com

Avi

Rep

Int

Mod

Hel

Line

Bus

China Aircraft Services Ltd

Y

Y

Y

 

Y

         

Hong Kong Aero Engine Services Ltd

 

Y

               

Hong Kong Aircraft Engineering Company - HAECO

Y

 

Y

Y

Y

 

Y

 

Y

 

Jet Aviation – Hong Kong

                   

Metrojet Ltd

     

Y

     

Y

 

Y

Pan Asia Pacific Aviation Services – PAPAS

               

Y

 

In addition, market opportunities arising from the building of a third runway with supporting facilities and infrastructure look promising for U.S. firms. Development of this three-runway system will involve the construction of related taxiway systems and airfield facilities, construction of passenger concourses, as well as the expansion of the existing Terminal 2. Potential suppliers should take note of the concern over the environmental impact.

Web Resources

Trade Shows / Exhibitions / Conferences:

China Aerospace & Aviation Technology Show
Dates: November 4-8, 2013
Location: Shanghai, China
Website: www.abace.aero/2013/

Industry Contacts:

Airport Authority Hong Kong
www.hongkongairport.com

Civil Aviation Department
www.cad.gov.hk

Association of Asia Pacific Airlines
www.aapairlines.org

U.S. Commercial Service Hong Kong

Contact: Ms. Maria Lo, Commercial Specialist
Tel: (852) 2521-1467
Fax: (852) 2845-9800
Email: maria.lo@trade.gov
Website: www.export.gov/hongkong