MRO & Manufacturing
Korean Air Expands Maintenance Capacity with New Hangar at Incheon Airport
Korean Air invests 176 billion KRW in a new maintenance hangar at Incheon to support its merger with Asiana and expand MRO capabilities by 2029.
We are witnessing a significant shift in the aviation infrastructure landscape within South Korea. Korean Air has officially announced a comprehensive plan to construct a new aircraft maintenance hangar at Incheon International Airport (ICN). This project, valued at approximately 176 billion KRW (roughly 120 million USD), marks a pivotal moment for the carrier as it prepares for a future defined by consolidation and expansion. The facility is scheduled to be situated within the High Tech Aviation Complex at the airport, signaling a long-term commitment to operational excellence.
The timing of this investment is particularly noteworthy. As the airline industry continues to recover and evolve post-pandemic, major carriers are looking to fortify their supply chains and maintenance capabilities. For Korean Air, this move is not merely about adding square footage; it is a strategic maneuver designed to support the integration of Asiana Airlines. With the merger set to create a “mega-carrier” with a combined fleet of over 230 aircraft, the existing infrastructure would likely struggle to meet the increased demand for heavy maintenance and technical services.
Construction on the new facility is slated to begin in 2027, with full operations expected to commence by late 2029. This timeline aligns with the broader integration schedules of the two Airlines, ensuring that the necessary support structures are in place as the unified fleet becomes fully operational. We see this as a proactive step to secure maintenance sovereignty, reducing reliance on external vendors and ensuring that safety standards remain under strict internal control.
The new hangar, designated as the “H3 Maintenance Facility,” represents a substantial upgrade to Korean Air’s current capabilities. Covering a total floor area of 69,299 square meters (approximately 746,000 square feet), the structure is designed to handle the largest aircraft in commercial operation today. According to the project details, the hangar will possess the capacity to service two wide-body aircraft, such as the Boeing 747, Boeing 777, or Airbus A350, and one narrow-body aircraft, like the Boeing 737 or Airbus A321neo, simultaneously.
This facility is specifically engineered for heavy maintenance tasks. In the aviation industry, these are often referred to as C-checks and D-checks, comprehensive inspections that require the aircraft to be taken out of service for extended periods. The H3 hangar will serve as a hub for these intensive procedures, as well as for aircraft modifications, airframe inspections, and component repairs. By centralizing these complex tasks, Korean Air aims to streamline its maintenance schedules and improve fleet availability.
The project is being executed through a partnership with the Incheon International Airport Corporation (IIAC). Under this arrangement, the IIAC is responsible for providing the land and handling site preparation, while Korean Air is funding the construction and the installation of advanced maintenance equipment. This public-private cooperation highlights the strategic importance of the aviation sector to the national economy and the shared goal of establishing Incheon as a premier global aviation hub.
“From the earliest design phase, we will ensure this new hangar becomes the safest, most advanced, and most exemplary maintenance base, a true stronghold of aviation safety.” , Woo Kee-hong, Vice Chairman of Korean Air.
The construction of the H3 hangar cannot be viewed in isolation; it is intrinsically linked to the impending merger with Asiana Airlines. Currently, Asiana Airlines outsources a significant portion of its heavy maintenance requirements to overseas providers, often in locations such as Singapore or China. While this model has served its purpose, it introduces logistical complexities and external dependencies. We understand that one of the primary synergies of the merger is the internalization of these maintenance volumes.
By bringing this work back to South Korea, the combined carrier expects to achieve greater cost efficiencies and faster turnaround times. The new hangar will provide the necessary “baseload” capacity to handle the expanded fleet, allowing the airline to maintain tighter control over quality and scheduling. Currently, Korean Air and Asiana operate a total of three hangars at Incheon with a combined capacity of six bays. The addition of the H3 facility significantly boosts this capacity, specifically targeting the wide-body aircraft that form the backbone of long-haul international operations. Furthermore, this expansion addresses a critical gap in the current infrastructure. Without this new facility, the combined entity would likely face capacity bottlenecks, potentially forcing them to continue outsourcing work at a higher cost. This investment effectively future-proofs the airline’s operations, ensuring that it can support its growth trajectory without being constrained by maintenance limitations.
Beyond the immediate needs of the fleet, this project is part of a larger ambition to transform Incheon into a global Maintenance, Repair, and Overhaul (MRO) cluster. Korean Air is simultaneously investing in a new Engine Maintenance Cluster in the Unbuk District near the airport. This separate project involves an investment of 578 billion KRW (approximately 430 million USD) and is expected to open in 2027. When combined with the 176 billion KRW for the H3 hangar, the total investment in MRO infrastructure exceeds 750 billion KRW (approx. 550 million USD).
This dual-pillar strategy, focusing on both airframe and engine maintenance, positions Korean Air to compete directly with established regional MRO hubs in Singapore and China. The logic is sound: by securing the massive maintenance volume of its own fleet, the airline creates a stable foundation. Once this internal demand is met, the excess capacity can be marketed to other foreign airlines flying into Incheon. This has the potential to evolve the Airport from a transit hub into a comprehensive service center for the aviation industry.
Technological advancement also plays a key role in this strategy. The new facilities are expected to integrate modern solutions, such as the Airbus Skywise Fleet Performance+ predictive maintenance tool. By utilizing AI-driven data analysis, the airline can predict component failures before they occur, further enhancing safety and reducing unexpected downtime. This blend of physical infrastructure and digital innovation is essential for competing in the modern aerospace market.
Korean Air’s decision to invest heavily in the H3 maintenance hangar is a clear indication of its long-term vision. It is a move that addresses the immediate logistical challenges of the Asiana merger while laying the groundwork for future growth as a global MRO provider. By internalizing critical maintenance functions, the airline is prioritizing safety, efficiency, and operational independence.
As we look toward 2029, the successful completion of this facility will likely serve as a cornerstone for the South Korean aviation industry. It represents a shift from relying on external partners to building a self-sufficient, high-tech ecosystem capable of servicing not just the national carrier, but potentially airlines from around the world.
Question: What is the total investment for the new H3 hangar? Question: When will the new maintenance hangar be operational? Question: How does this project relate to the Asiana Airlines merger?
Korean Air Announces Massive Infrastructure Expansion at Incheon International Airport
The H3 Maintenance Facility: Scope and Capabilities
Strategic Implications of the Asiana Merger
Building a Global MRO Powerhouse
Conclusion
FAQ
Answer: Korean Air is investing approximately 176 billion KRW (about 120 million USD) into the construction and equipping of the new facility.
Answer: Construction is scheduled to begin in 2027, with the facility expected to be fully operational by late 2029.
Answer: The new hangar is essential for handling the increased maintenance volume of the combined fleet (over 230 aircraft) and allows the airline to internalize heavy maintenance work that Asiana currently outsources.
Sources
Photo Credit: Incheon International Airport Corporation
MRO & Manufacturing
ST Engineering Signs Multi-Year MRO Contract with Xiamen Airlines
ST Engineering secures multi-year contract to maintain CFM LEAP-1A engines for Xiamen Airlines’ Airbus A320neo fleet, expanding capacity by 2027.
This article is based on an official press release from ST Engineering.
ST Engineering has officially signed a multi-year agreement with Xiamen Airlines to provide comprehensive maintenance, repair, and overhaul (MRO) services for the airline’s CFM LEAP-1A engines. Announced on February 4, 2026, during the Singapore Airshow, this contract marks a significant expansion of the 35-year partnership between the Singapore-based engineering group and the Chinese carrier.
Under the terms of the agreement, ST Engineering will perform the first Performance Restoration Shop Visit (PRSV) for the engines powering Xiamen Airlines’ Airbus A320neo family fleet. This deal underscores ST Engineering’s growing influence in the next-generation engine maintenance market and supports Xiamen Airlines’ operational transition as it integrates Airbus aircraft into its historically Boeing-centric fleet.
The contract focuses specifically on the CFM LEAP-1A engines, which power the Airbus A320neo family. According to the announcement, the agreement covers the maintenance requirements for Xiamen Airlines’ current narrowbody Airbus fleet, which consists of:
The primary service provided will be the Performance Restoration Shop Visit (PRSV). This is a major maintenance event intended to restore exhaust gas temperature (EGT) margins and fuel efficiency after engines have undergone significant operational cycles. By securing this agreement, Xiamen Airlines ensures that its relatively new Airbus fleet receives support from a facility with established expertise in LEAP engine technology.
Both companies emphasized the trust built over decades of cooperation. Tang Jianqi, Deputy General Manager of Engineering & Maintenance at Xiamen Airlines, highlighted the competitive nature of the selection process.
“The success of ST Engineering in winning this highly competitive bidding project… fully demonstrates its comprehensive competence in the engine maintenance industry, including quality, service, and pricing.”
, Tang Jianqi, Deputy General Manager of Engineering & Maintenance, Xiamen Airlines
Tay Eng Guan, Head of Engine Services at ST Engineering, noted that the contract reflects the airline’s confidence in their technical capabilities.
“This new agreement… is a testament to their strong confidence in our engine MRO capabilities, built on a robust track record of reliable and high-quality maintenance we have provided to their engine fleets over the years.”
, Tay Eng Guan, Head of Engine Services, ST Engineering
This agreement represents a pivotal moment for both entities. For Xiamen Airlines, a subsidiary of China Southern Airlines, the move secures critical support for its fleet modernization strategy. Historically known as an all-Boeing operator, the airline introduced Airbus aircraft in late 2022. Securing a regional MRO partner for the LEAP-1A engines is essential for maintaining the high service standards and operational reliability the airline is known for.
For ST Engineering, the deal validates its aggressive investment in next-generation capabilities. As the first independent MRO provider in Asia to join the CFM Branded Service Agreement (CBSA) network for LEAP engines, the company is positioning itself to capture the “maintenance wave” anticipated as engines delivered in the late 2010s reach their first major shop visits.
To meet the rising demand for LEAP engine maintenance, ST Engineering is currently expanding its Singapore facility. The company aims to double its annual LEAP engine maintenance capacity to over 300 engines by 2027. This capacity growth is designed to support contracts exactly like the one signed with Xiamen Airlines, as well as future requirements for LEAP-1B engines powering Boeing 737 MAX fleets.
While the specific financial value of this contract was not disclosed, it contributes to a robust period for ST Engineering’s Commercial Aerospace division. The division reported a record $18.7 billion in total contract wins for the fiscal year 2025, with $1.7 billion secured in the fourth quarter alone.
The collaboration between ST Engineering and Xiamen Airlines spans more than three decades, evolving alongside advancements in aviation technology. The partnership began with support for older engine types and has progressed through several generations of propulsion technology:
This continuity ensures that as Xiamen Airlines diversifies its fleet, it retains a consistent maintenance partner capable of handling mixed-fleet requirements.
ST Engineering Secures Multi-Year LEAP-1A MRO Contract with Xiamen Airlines
Scope of the Agreement
Executive Commentary
Strategic Context and Market Impact
AirPro News Analysis
Capacity Expansion and Financials
A 35-Year Partnership
Sources
Photo Credit: ST Engineering
MRO & Manufacturing
ANA Launches Digital Overhaul with Swiss-AS and MINT Partnerships
ANA is modernizing maintenance and training systems with Swiss-AS and MINT in a multi-year project launching in FY2027.
This article is based on an official press release from All Nippon Airways.
All Nippon Airways (ANA) has officially announced the launch of a comprehensive multi-year initiative to modernize its maintenance and training management infrastructure. In a statement released on February 2, 2026, the Japanese carrier confirmed it has selected Swiss AviationSoftware (Swiss-AS) and MINT Software Systems as its primary technology partners for this transformation.
The project, which is scheduled to go live in Fiscal Year 2027, aims to consolidate more than 10 fragmented legacy systems into a unified digital platform. According to the airlines, this move is a critical pillar of its FY2026–2028 Medium-Term Corporate Strategy, designed to streamline operations ahead of the planned expansion of Narita Airport in 2029.
The core objective of this initiative is to replace independent, specialized legacy systems with an integrated ecosystem that offers real-time data visibility. By moving to industry-standard platforms, ANA intends to standardize global processes and enhance its predictive maintenance capabilities.
For the management of aircraft, engines, and components, ANA has selected the AMOS software suite from Swiss-AS, a subsidiary of Lufthansa Technik. AMOS is a widely adopted MRO solution used by over 230 airlines globally, including major carriers such as Singapore Airlines and Ryanair.
The implementation of AMOS will allow ANA to transition toward a fully digital technical operations ecosystem. Key capabilities cited in the announcement include the integration of electronic technical logs (eTechLog) and the ability to connect with other digital platforms for advanced analytics.
To overhaul its training and qualification management, ANA will deploy the MINT Training Management System (TMS). Headquartered in Germany, MINT specializes in safety-critical industries and currently supports carriers like JetBlue and Emirates.
According to the press release, the MINT TMS will replace legacy scheduling tools, allowing the airline to optimize the utilization of training resources, such as simulators and instructors, while ensuring precise tracking of workforce qualifications. This digital transformation project is not an isolated IT upgrade but part of a broader aggressive growth strategy. ANA’s Medium-Term Corporate Strategy (FY2026–2028) outlines a record investments of 2.7 trillion yen, heavily weighted toward digital transformation (DX) and fleet expansion.
The airline is positioning itself to capitalize on the 2029 expansion of Narita Airport, targeting a 1.3x increase in international passenger and cargo services by FY2030. The consolidation of maintenance systems is viewed as a prerequisite for this scale-up, addressing current “fragmentation” that limits agility.
“This initiative will consolidate over 10 fragmented legacy systems into a single integrated platform, projected to go live in Fiscal Year 2027.”
, ANA Press Release
The selection of Swiss-AS and MINT highlights a distinct divergence in strategy between Japan’s two largest carriers. While ANA has opted for the AMOS ecosystem, often considered the “best-of-breed” solution favored by the Lufthansa Group, its primary competitor, Japan Airlines (JAL), chose a different path in mid-2025.
JAL selected IFS Cloud for its maintenance operations, a platform known for broader enterprise asset management and supply chain integration. This suggests that while both airlines are urgently modernizing legacy infrastructure to handle data-heavy modern aircraft like the Boeing 787, they are prioritizing different technical philosophies. ANA’s choice signals a strong alignment with the operational models of other Star Alliance members and Lufthansa Technik’s digital ecosystem.
Furthermore, the timing of these investments reflects a wider industry trend where airlines are racing to adopt SaaS (Software as a Service) models. As labor shortages for mechanics and engineers persist globally, the efficiency gains from software like MINT TMS and AMOS are becoming operational necessities rather than just IT upgrades.
Sources: ANA Press Release (Feb 2, 2026); Swiss AviationSoftware; MINT Software Systems.
ANA Launches Major Digital Overhaul with Swiss-AS and MINT Partnerships
Unifying Maintenance and Training Operations
Swiss-AS and AMOS
MINT Software Systems
Strategic Context: The 2.7 Trillion Yen Push
AirPro News Analysis
Sources
Photo Credit: All Nippon Airways
MRO & Manufacturing
Airbus Forecasts Asia-Pacific Aviation Services Market to Reach $138.7B by 2044
Airbus projects Asia-Pacific aviation services market will grow to US$138.7 billion by 2044, driven by fleet expansion and digital services.
This article is based on an official press release from Airbus.
During the Singapore Airshow in February 2026, Airbus unveiled its latest Global Services Forecast (GSF) for the Asia-Pacific region, projecting a massive expansion in the aviation services sector. According to the manufacturer, the market value for aviation services in the region, which includes China and India, is expected to reach US$138.7 billion by 2044.
This projection represents a compound annual growth rate (CAGR) of 5.2% from 2025 levels. Airbus identifies the Asia-Pacific region as the world’s fastest-growing market for these services, driven by a surge in passenger traffic and a critical need for fleet modernization. The forecast anticipates that the region will require 19,560 new aircraft over the next two decades, a figure that accounts for 46% of total global demand.
The Airbus report breaks down the market into five key segments, highlighting where the capital investment is likely to flow over the next 20 years. The largest contributor to this valuation is the “Off-Wing Maintenance” sector, which includes engine and component overhauls.
According to the press release, the Off-Wing Maintenance segment is projected to grow from an estimated US$37.1 billion in 2025 to US$100 billion by 2044. This growth is necessitated by the expansion of regional fleets and the aging of current aircraft inventories.
While maintenance holds the highest value, the “Digital & Connectivity” segment is identified as the fastest-growing area. Airbus forecasts this sector will nearly quadruple in value, rising from US$2.9 billion to US$11.2 billion. This surge is attributed to the increasing adoption of AI-based predictive maintenance and the rising expectations for passenger connectivity.
“The Asia-Pacific region will see the largest volume of growth and activity in terms of aftermarket services… especially digital solutions are becoming real multipliers, enabling operators to scale up without compromising on reliability or cost.”
— Cristina Aguilar Grieder, SVP Customer Services, Airbus
The forecast outlines three other critical areas of development: To support this unprecedented growth, the Asia-Pacific region faces a significant human resources challenge. Airbus estimates a total requirement for 1.06 million new aviation professionals by 2044. This demand represents nearly half of the global requirement for skilled aviation labor.
The breakdown of this workforce demand includes:
While the Airbus figures paint a picture of robust health, we note that the projected growth relies heavily on the region’s ability to overcome supply chain constraints and labor shortages. The heavy emphasis on the “Digital & Connectivity” segment, quadrupling in value, suggests a strategic pivot by airlines. Carriers appear to be banking on AI and data analytics not just for efficiency, but as a necessary mitigation strategy against the looming workforce gap.
Furthermore, cross-referencing this data with broader industry reports provides context. Boeing’s recent outlook similarly identifies Southeast Asia as a growth engine, forecasting a need for nearly 4,885 new aircraft in that sub-region alone. Meanwhile, independent analysis from Aviation Week suggests the broader Asia-Pacific and China region will account for 30% of global MRO (Maintenance, Repair, and Overhaul) demand over the next decade. The alignment between these major forecasts underscores the consensus that the center of gravity for global aviation is firmly shifting toward Asia.
What is the total value of the Asia-Pacific aviation services market by 2044? Which sector within aviation services is growing the fastest? How many new aircraft will the Asia-Pacific region need? How many new aviation professionals are needed in the region?
Airbus Forecasts Asia-Pacific Aviation Services Market to Hit $138.7 Billion by 2044
Maintenance and Digitalization Driving Growth
Additional Market Segments
Workforce Demand: A Critical Challenge
AirPro News Analysis
Frequently Asked Questions
Airbus forecasts the market will reach US$138.7 billion by 2044.
The “Digital & Connectivity” segment is the fastest-growing, expected to nearly quadruple to US$11.2 billion.
The region is expected to require 19,560 new aircraft over the next 20 years, representing 46% of global demand.
The forecast estimates a need for 1.06 million new professionals, including pilots, technicians, and cabin crew.
Sources
Photo Credit: Airbus
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