RTX Collins Aerospace Secures 20 Year Maintenance Deals with China Airlines

RTX’s Collins Aerospace Secures Major 20-Year Maintenance Contracts with China Airlines

RTX Corporation’s Collins Aerospace division has secured two landmark 20-year service contracts with China Airlines, Taiwan’s flagship carrier, to deliver FlightSense and Dispatch solutions for the airline’s Boeing widebody fleet. These agreements mark a significant expansion of Collins Aerospace’s footprint in the Asia-Pacific region and highlight the rising importance of predictive maintenance solutions in commercial aviation. The contracts are designed to boost China Airlines’ operational efficiency, enhance aircraft reliability, and streamline maintenance schedules across critical systems such as avionics, cargo, power, environmental control, and lighting.

This development comes amid robust growth in the global aircraft maintenance, repair, and operations (MRO) sector, which was valued at around USD 90.85 billion in 2024 and is projected to reach over USD 120 billion by 2030. As airlines worldwide navigate the challenges of aging fleets, new aircraft integration, and sustainability goals, long-term partnerships like this one between Collins Aerospace and China Airlines are becoming increasingly strategic.

The contracts, announced during the MRO Asia Pacific conference, signal a shift toward data-driven, proactive maintenance strategies that can reduce costs and minimize disruptions in a highly competitive and regulated industry.

Collins Aerospace and RTX Corporation: Background and Global Presence

Collins Aerospace stands as one of the world’s largest aerospace and defense suppliers, formed through the 2018 merger of Rockwell Collins and UTC Aerospace Systems. Now a subsidiary of RTX Corporation (formerly Raytheon Technologies), Collins Aerospace is headquartered in Charlotte, North Carolina, and reported $26 billion in sales in 2019, with a workforce of approximately 68,000 employees globally. RTX Corporation, the parent, emerged from the 2020 merger of United Technologies and Raytheon Company, establishing itself as the world’s largest aerospace and defense company with over 185,000 employees and 2024 sales exceeding $80 billion.

Collins Aerospace operates through six business units: Aerostructures, Avionics, Interiors, Mission Systems, Connected Aviation Solutions, and Power & Controls. Its broad product and service portfolio covers commercial aviation, business jets, military and defense, helicopters, space, and airport infrastructure. The company’s strategy has included targeted acquisitions, such as the 2021 purchase of FlightAware, a leader in real-time and predictive flight data, and divestitures like the 2023 sale of its actuation and flight controls business to Safran, to sharpen its focus on core competencies and digital aviation solutions.

RTX’s scale and diversification, with major subsidiaries including Pratt & Whitney and Raytheon, give Collins Aerospace significant market reach and the resources to invest in advanced technology, positioning it as a key player in the evolution of aviation maintenance and operations.

Strategic Expansion into Asia-Pacific

The Asia-Pacific region is currently one of the fastest-growing aviation markets, driven by rising passenger traffic and significant investments in fleet modernization. Collins Aerospace’s new long-term contracts with China Airlines reinforce its commitment to this dynamic market. The agreements also build on a pattern of similar wins in the region, such as a recent contract renewal with Japan Airlines, demonstrating Collins’ ability to deliver value to leading carriers through advanced maintenance and analytics solutions.

By securing these contracts, Collins Aerospace is not only expanding its regional presence but also positioning itself as a preferred partner for airlines seeking to leverage predictive maintenance to enhance competitiveness and operational resilience.

This move aligns with broader industry trends, where airlines are increasingly seeking integrated, data-driven solutions to manage the complexity and cost of modern fleets.

“FlightSense will provide China Airlines with more than just reliable service and access to data, it will enable a connected aircraft ecosystem, turning raw data into actionable insights and smarter decisions for fleets.” , Brian Barta, Collins Aerospace

China Airlines’ Fleet Modernization and Operational Challenges

China Airlines, established in 1959 and based in Taoyuan International Airport, is in the midst of a complex fleet renewal. The carrier operates a diverse fleet of 87 passenger and cargo aircraft, including A321neo, A350-900, 777-300ER, A330-300, and 737-800 models. The average age of its A330 fleet is 17.7 years, with some aircraft exceeding 20 years in service, creating an urgent need for modernization to maintain efficiency and competitiveness.

Delays in Boeing 787-9 Dreamliner deliveries have forced China Airlines to extend the service life of older aircraft, including leased jets, to maintain capacity. This situation has led to increased maintenance costs and operational complexity, while also prompting the airline to seek compensation discussions with Boeing. Despite these challenges, China Airlines has placed substantial orders for new aircraft, including 24 Boeing 787s (18 787-9s and six 787-10s), ten A350-1000s, and additional A321neos, with a total list price value approaching $12 billion. These investments are part of a broader strategy to improve fuel efficiency and reduce carbon emissions, supporting the airline’s Net Zero by 2050 target.

The timing of the Collins Aerospace contracts is critical, providing China Airlines with the technological and operational support needed to manage both legacy and next-generation fleets during this transitional period. According to the airline’s 2025 investor presentation, China Airlines has 36 aircraft on order, with a fleet plan extending through 2032 that includes both passenger and cargo models.

Financial and Industry Context

China Airlines reported consolidated revenue of NT$104.06 billion (approximately US$3.56 billion) for the first half of 2025, a 5.24% year-on-year increase. This growth, driven by strong travel demand and cargo operations, helps offset the financial pressures of fleet renewal and long-term service contracts. The airline’s ongoing capital expenditures, such as over $2 billion in recent aircraft leases and orders, underscore the need for cost-predictable, value-driven maintenance partnerships.

Across the broader Chinese airline industry, major carriers like Air China, China Eastern, and China Southern continue to face financial headwinds, with losses expected in 2025 due to currency volatility, geopolitical tensions, and subdued business travel. These challenges make operational efficiency and reliability, as provided by predictive maintenance solutions, even more crucial for sustainable growth.

The Asia-Pacific region’s MRO sector is forecasted to experience the highest compound annual growth rate globally, making it a strategic priority for providers like Collins Aerospace seeking long-term, high-value service agreements with leading carriers.

FlightSense, Dispatch, and the Ascentia Platform: Technology in Action

Collins Aerospace’s FlightSense program is a comprehensive lifecycle maintenance solution tailored to the unique needs of airline operations. It integrates the Ascentia analytics platform, which leverages advanced prognostics, health management software, and machine learning to transform raw operational data into actionable maintenance insights. By evaluating thousands of parameters, Ascentia enables predictive maintenance, helping airlines schedule repairs before failures occur, thus reducing unscheduled downtime and improving safety and reliability.

The Dispatch program, included in the China Airlines contracts, offers fixed-rate, guaranteed component availability and logistical support for the airline’s Boeing 787, 777, and 777 freighter fleet. This model provides cost predictability and minimizes operational disruptions, a critical advantage in an industry where maintenance costs are volatile and reliability is paramount.

Ascentia’s capabilities extend to natural language processing, as seen in the Repeaters application, which can automatically resolve coding and text errors in maintenance logs, streamlining data management and enabling more precise decision-making. The platform’s flexibility allows airlines to customize service levels and integrate predictive maintenance into diverse operational models, whether for small regional carriers or large international fleets.

“Using the FlightSense program, especially the Ascentia analytics platform, we aim to make our preventive and predictive maintenance even more accurate.” , Kyohei Takizawa, Japan Airlines

Proven Results and Industry Adoption

Japan Airlines’ recent renewal of a 10-year FlightSense contract, which includes air management and power components for over 50 Boeing 787s, highlights the practical benefits of these solutions. The contract also extends JAL’s Ascentia analytics agreement, providing ongoing operational insights and cost reduction. Airlines that have adopted predictive maintenance platforms like Ascentia have reported measurable improvements, such as a 15% reduction in unscheduled maintenance events, supporting the business case for further industry adoption.

Collins Aerospace faces competition in this space from companies such as Lufthansa Technik, Honeywell, Thales, and Infosys. The market is moderately concentrated in software solutions but fragmented in services, with both global and regional providers vying for market share. Collins’ integration of hardware, software, and support services offers a competitive edge, especially as airlines seek holistic, technology-driven solutions.

Digitalization and the use of IoT, big data analytics, and AI are reshaping the MRO market. Airlines and MRO providers are leveraging cloud-based systems and digital twins to optimize maintenance schedules, improve data accessibility, and reduce costs. Regulatory pressures and sustainability goals further drive the adoption of predictive maintenance, as airlines look to minimize waste and extend component lifecycles.

Conclusion

The 20-year contracts between Collins Aerospace and China Airlines represent a significant shift in the aviation industry’s approach to maintenance, emphasizing proactive, data-driven solutions over traditional reactive models. These agreements provide long-term revenue stability for Collins Aerospace and operational predictability for China Airlines, supporting the airline’s ambitious fleet renewal and sustainability objectives.

As the global MRO market continues to grow and technological innovation accelerates, partnerships like this set a precedent for the industry. They demonstrate how digital transformation, predictive analytics, and integrated service models can deliver tangible benefits, reducing costs, improving reliability, and supporting environmental goals. The success of these contracts may encourage broader adoption of similar strategies across the aviation sector, shaping the future of airline maintenance and operations.

FAQ

What are the main features of Collins Aerospace’s FlightSense and Dispatch programs?
FlightSense provides full lifecycle maintenance support with predictive analytics, while Dispatch offers fixed-rate, guaranteed component availability and MRO support for specific aircraft fleets.

How will these contracts benefit China Airlines?
The contracts will enhance operational efficiency, reduce downtime, and provide cost predictability for China Airlines during its fleet modernization, supporting both legacy and new aircraft operations.

What technology underpins Collins Aerospace’s predictive maintenance solutions?
The Ascentia platform, which uses advanced analytics, machine learning, and natural language processing, is central to Collins’ predictive maintenance offerings, enabling data-driven decision-making and proactive repairs.

How does predictive maintenance support sustainability?
By optimizing aircraft performance, reducing unnecessary maintenance, and extending component lifecycles, predictive maintenance helps airlines lower resource consumption and support carbon reduction goals.

Who are Collins Aerospace’s main competitors in the MRO and predictive maintenance market?
Key competitors include Honeywell, Lufthansa Technik, Thales, Infosys, and various regional MRO providers.

Sources

• RTX News Center