China Aircraft Leasing Group (CALC), its Aircraft Recycling International (ARI) unit, and FL Technics have formed an MRO joint venture.

The joint venture will be based in Harbin, China with an initial investment of $23 million, says CALC in a statement.

The joint venture will be called FL ARI Aircraft Maintenance & Engineering (FL ARI). ARI will hold 49%, FL Technics 40%, and CALC 11%. Focus areas will be on base maintenance, scheduled checks and overhaul, aircraft disassembly, engineering services, and consulting.

FL ARI will also service components such as engines, auxiliary power units, and landing gear.

“ARI will focus on aircraft parts and components supply, mid-to-end-of-life aircraft trading, logistics and supply chain management,” says CALC.

“FL Technics will be mainly engaged in aircraft maintenance & repair and technical support leveraging on its proven team, technical capabilities and management system.”

CALC says it will use its client networks and reach to aid the new venture. It adds that the new business will complement its existing disassembly and part-out service, and allow it to provide support for an aircraft’s full life cycle.

Though CALC does not cite aircraft types, it cites ICF International’s market forecast, which indicates that China’s narrowbody fleet is expected to grow 4.8% annually from 2017 to 2027, creating MRO demand for narrowbodies.

It adds that small-to-medium-sized Chinese airlines will generate a significant amount of demand for services, but that there is a lack of independent MRO support.

Source: Cirium Dashboard