This article is based on an official statement from AerFin and analysis of industry data.

China’s Aviation Sector Pivots to Sustainable Teardown and Used Materials

China’s aviation industry is undergoing a significant structural transformation. Long characterized by rapid fleet expansion and new aircraft deliveries, the region is now entering a “pivotal decade” defined by maturing assets and a renewed focus on sustainability. According to Paul Ashcroft, Senior Vice President Asia-Pacific at AerFin, this shift is reshaping how airlines approach material use and end-of-life strategies.

As fleets age and operational pressures mount, the market for aircraft teardown and recycling in China is expanding rapidly. This trend is driven not only by environmental goals but by the urgent economic necessity of navigating a constrained global supply chain.

The “Mid-Life” Transition and Supply Chain Pressures

While China is often viewed as a market of young aircraft, the reality is changing. Major carriers are seeing their fleets progress toward mid-life, a phase that typically requires heavy maintenance and strategic decisions regarding asset retirement.

According to industry data, while the global commercial fleet average age reached approximately 14.8 years in late 2024, major Chinese carriers like Air China now operate fleets averaging over 9 years. This maturation coincides with what Ashcroft describes as “escalating maintenance costs” and “structural supply-chain constraints.”

In his statement, Ashcroft highlights the difficulties operators face in securing new inventory:

“New parts remain expensive and, in many cases, are difficult to secure. Geopolitical tensions and tariffs continue to influence material flows.”

Paul Ashcroft, SVP Asia-Pacific, AerFin

These constraints are corroborated by broader market analysis. Recent industry reports indicate that turnaround times (TAT) for new-generation engines have increased by up to 150% compared to pre-pandemic levels, creating a bottleneck that threatens operational stability. Consequently, Used Serviceable Material (USM) is transitioning from a cost-saving option to a strategic necessity.

The Strategic Role of USM

Airlines are increasingly utilizing USM to reduce downtime and manage operational risk. Ashcroft notes that confidence in this sector is rising, bolstered by strict controls from the Civil Aviation Administration of China (CAAC), which ensures safety and traceability standards are met. By integrating high-quality used parts, operators can create more predictable maintenance pathways despite the volatility in the new parts market.

Sustainability and the 90% Recycling Ambition

Beyond economic pressures, the shift toward teardown and recycling is aligned with China’s national environmental goals. During a recent USM conference in Jinan, Ashcroft reported hearing a consistent ambition within the Chinese industry to reuse or recycle more than 90% of materials from retired aircraft.

This target aligns with benchmarks set by major industrial projects in the region, such as the Airbus Lifecycle Services Centre in Chengdu, which aims to recover 90% of aircraft weight, surpassing traditional industry averages. However, achieving this scale of recycling presents technical challenges.

The Challenge of Complex Materials

While the majority of an aircraft’s weight consists of highly recyclable metals, newer aircraft introduce materials that are harder to process. Ashcroft explains the distinction:

“The materials of a typical A320ceo aircraft consist of approximately 70% aluminium and 10% steel, by weight, and these are widely recyclable.”

Paul Ashcroft, SVP Asia-Pacific, AerFin

The remaining percentage, however, includes cabin interiors and carbon fiber composites. As fleets modernize and newer generation aircraft with higher composite compositions eventually retire, the industry will require deeper cooperation and new technologies to ensure these materials are responsibly recycled rather than sent to landfill.

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Bridging the Gap with International Expertise

The maturation of China’s fleet represents a massive opportunity for aftermarket service providers. With Boeing’s 2024 Commercial Market Outlook forecasting that China’s commercial fleet will more than double by 2043, the volume of aircraft requiring end-of-life processing will surge.

However, the “trust infrastructure”—documentation, certification, and traceability—remains the critical barrier to entry. Western firms like AerFin, which hold AFRA accreditation and EASA/FAA Part 145 certifications, are positioning themselves as essential bridges. By bringing international best practices to the Chinese market, these companies help local operators navigate the complex regulatory landscape of the CAAC while ensuring that the “90% recycling” ambition becomes a technical reality rather than just a policy goal.

Sources

Sources: AerFin Official Statement, Boeing Commercial Market Outlook 2024, Airbus Lifecycle Services Centre Data, Air China Fleet Data