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HAECO and CALC Sign MoU for Hong Kong Engine Support Platform

HAECO and CALC signed an MoU on August 20, 2026, to establish a joint engine lifecycle support platform in Hong Kong.

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Hong Kong Aircraft Engineering Company Limited (HAECO) and China Aircraft Leasing Group Holdings Limited (CALC) signed a Memorandum of Understanding (MoU) on August 20, 2026, to establish a joint engine lifecycle support platform in Hong Kong.

The partnership, announced in a joint press release, targets regional aviation support capabilities by focusing on engine quick-turn services, hospital repairs, and asset management. The initiative also aims to optimize the use of used serviceable materials (USM) to enhance value across the aircraft lifecycle and improve supply chain resilience.

Strategic focus on engine lifecycle management

The collaboration merges HAECO’s technical maintenance capabilities with CALC’s aircraft leasing and asset management portfolio. The initial operational focus will center on specialized engine maintenance, specifically quick-turn and hospital repairs. These services are designed to address specific engine issues and return powerplants to service without requiring a full performance restoration shop visit.

HAECO Group Chief Executive Officer Richard Sell highlighted the strategic alignment between the two organizations.

“The timing of the partnership is significant. It brings together two Hong Kong-based companies with a shared ambition to support the industry’s future growth and reinforce Hong Kong’s position in the global aviation value chain,” Sell stated in the release.

Bolstering Hong Kong as an aviation hub

The MoU aligns with broader efforts to expand aviation infrastructure and services in the region. CALC, which became Asia’s first listed aircraft leasing company when it joined The Stock Exchange of Hong Kong Limited in 2014, views the partnership as a step toward advancing high value-added aviation services.

CALC Chief Executive Officer Mike Poon noted that the agreement aims to enhance aircraft asset utilization and unlock new opportunities across the aviation value chain, reflecting the vision of China’s 15th Five-Year Plan.

The agreement follows recent expansions by HAECO in the engine maintenance sector. On July 22, 2026, the maintenance, repair, and overhaul (MRO) provider opened a new engine workshop in Hong Kong to increase capacity. On the same date, HAECO established an Elite-Level agreement with Woodward to support the global CFM International LEAP engine fleet.

AirPro News analysis

We view this partnership as a highly complementary alignment of assets. HAECO brings extensive technical infrastructure and a global workforce of approximately 15,000 staff across 14 operating companies. CALC provides the asset management framework and a steady pipeline of leased aircraft requiring lifecycle management. The explicit focus on used serviceable materials (USM) is particularly notable. As the global aviation industry continues to navigate supply chain bottlenecks and new-generation engine durability challenges, optimizing USM recovery and deployment has become a critical strategy for controlling maintenance costs and minimizing aircraft downtime.

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Sources: HAECO Group

Photo Credit: HAECO Group

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MRO & Manufacturing

PPG Invests $70 Million to Expand Aerospace Transparencies in Alabama

PPG commits $70M to a new 112,000-sq-ft facility in Huntsville, AL, to scale aircraft window manufacturing capacity.

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PPG Invests $70 Million to Expand Aerospace Transparencies in Alabama

Global coatings and specialty materials supplier PPG has committed $70 million to expand its aerospace transparencies manufacturing footprint in Huntsville, Alabama, adding a 112,000-square-foot facility to support increased production of aircraft windows.

Announced in a press release on October 7, 2026, the investment involves leasing and building out a new site dedicated to production support functions. Relocating these operations will free up manufacturing space at PPG’s existing Huntsville plant, allowing the company to scale output of cockpit and passenger windows for commercial, military, and general aviation customers.

Optimizing manufacturing for increased throughput

The expansion project is designed to address rising demand across multiple aviation sectors as aircraft manufacturers increase production rates. By shifting production support functions to the newly leased 112,000-square-foot building, PPG will optimize its primary manufacturing floor for higher throughput and future equipment installations.

“This expansion increases our operational efficiency, provides room for future equipment investments and reinforces our long-term commitment to serving customers and investing in Huntsville,” said Francois Buehlmann, General Manager, Global Transparencies, Aerospace at PPG.

Buehlmann noted that demand for aerospace transparencies continues to grow across the commercial, military, and general aviation markets. The company views the Huntsville region, where it has operated its aerospace transparencies manufacturing facility for more than 55 years, as a critical hub for its aerospace network.

“Huntsville is recognized globally for innovation and leadership in aerospace,” Buehlmann added. “We are proud to continue investing in this community and look forward to growing alongside the region’s dynamic aerospace network.”

Strategic positioning in the global transparencies market

The $70 million capital injection in Alabama aligns with a broader capacity expansion strategy detailed by PPG leadership earlier in the year. During an aerospace business presentation to analysts on June 9, 2026, the company highlighted strategic investments aimed at capturing multi-year industry demand, driving long-term organic sales growth, and delivering customer productivity.

PPG, headquartered in Pittsburgh, Pennsylvania, reported total net sales of $15.9 billion in 2025. The company operates a dedicated aerospace division supplying coatings, sealants, engineered materials, and transparencies to customers in more than 50 countries.

In the highly competitive global aircraft transparencies sector, PPG holds an estimated market share between 14 percent and 17 percent. The company competes directly with other major aerospace suppliers, including GKN Aerospace, Saint-Gobain, and Gentex Corporation. The global market for aircraft windows and canopies is currently driven by the rapid expansion of commercial aviation fleets and ongoing military procurement programs.

The press release did not specify an exact completion date for the Huntsville build-out, noting only that the investment is part of a series of multi-year projects supporting the company’s aerospace growth objectives.

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Photo Credit: PPG

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Deutsche Aircraft Gets Automated Logistics Center for D328eco

Jungheinrich delivered an automated logistics center at Leipzig/Halle Airport to support D328eco turboprop serial production.

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Deutsche Aircraft Gets Automated Logistics Center for D328eco

Jungheinrich AG has officially handed over a fully automated logistics center to Deutsche Aircraft GmbH at Leipzig/Halle Airport, completing a critical infrastructure component for the upcoming D328eco regional turboprop production line.

The October 6, 2026 handover follows the recent inauguration of the manufacturer’s €100 million Final Assembly Line (FAL) in Saxony. According to a joint press release, the facility represents the first industrial deployment combining Jungheinrich’s PowerCube automated compact bin storage system and an automated very narrow aisle warehouse under a single control system.

Integrating automated logistics for aircraft assembly

The logistics center is designed to support Deutsche Aircraft’s “Factory 4.0” industrialization strategy, which emphasizes paperless, highly automated, and carbon-neutral manufacturing processes. The partnership between the two German companies was initially announced on October 14, 2025, with the goal of creating a highly space-efficient material supply chain for the D328eco program.

The completed facility utilizes two primary automated storage solutions managed by a unified control system. The Jungheinrich PowerCube, an automated compact bin storage system, occupies a footprint of just 210 square meters. Within this space, the system accommodates more than 6,500 containers stacked across 26 levels. This high-density storage is designed to manage the thousands of small components required for commercial aircraft assembly.

Alongside the PowerCube, Jungheinrich installed an automated very narrow aisle warehouse, designated as AutoVNA. This segment of the logistics center manages 624 pallet locations distributed across two aisles, handling larger components and bulk materials necessary for the manufacturing process.

Deutsche Aircraft Vice President Operations & Production Sebastian Böhnl highlighted the operational necessity of the new infrastructure.

As we prepare to ramp up production towards a capacity of up to 48 aircraft per year, the D328eco programme requires a logistics infrastructure that can scale alongside it. The Jungheinrich PowerCube and AutoVNA provide exactly that, ensuring every part is available when it is needed for assembly, all within a significantly smaller footprint than any other solution we evaluated.

Transitioning the D328eco to serial production

The handover of the logistics center is a direct follow-on to the official inauguration of the D328eco Final Assembly Line, which took place on September 29, 2026. The new production complex at Leipzig/Halle Airport spans 60,500 square meters and represents an investment exceeding €100 million.

The facility is engineered to support a maximum production rate of up to 48 aircraft per year once fully operational. To support this ramp-up phase between 2026 and 2027, Deutsche Aircraft plans to onboard approximately 250 employees at the Leipzig site. The logistics center will serve as the material heartbeat of this operation, ensuring that components flow seamlessly to the assembly stations as production scales.

The transition from development to serial production is running parallel to the aircraft’s certification campaign. In September 2026, Deutsche Aircraft completed both low-speed and high-speed taxi testing for the D328eco landing gear certification program. Engineering, flight testing, and certification activities remain centralized at the company’s headquarters in Oberpfaffenhofen, while Leipzig handles final assembly and customer deliveries.

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Reviving regional turboprop manufacturing in Saxony

The opening of the Leipzig Final Assembly Line and its supporting logistics infrastructure marks the return of full-scale passenger aircraft assembly to the German state of Saxony after a gap of more than 60 years. Deutsche Aircraft, building on the engineering heritage of Dornier, is positioning the D328eco to capture demand in a specific market segment that has seen limited new clean-sheet or heavily updated designs in recent years.

The D328eco is a 40-seat regional turboprop based on the legacy Dornier 328 platform. The updated aircraft features modern avionics and is powered by Pratt & Whitney Canada PW127XT-S engines. A key selling point for the program is its environmental operational capability, as the aircraft is designed to operate on 100 percent Power-to-Liquid Sustainable Aviation Fuel (PtL SAF).

The production facility itself mirrors the environmental focus of the aircraft. The Leipzig complex was constructed using wood-concrete hybrid materials and incorporates heat pump technology alongside extensive photovoltaic systems. These design choices align with the company’s stated goal of achieving a carbon-neutral production environment.

With the logistics center now officially handed over, Deutsche Aircraft will focus on integrating the automated systems into its daily assembly operations as it prepares for the D328eco’s eventual entry into service.

Photo Credit: Deutsche Aircraft

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MRO & Manufacturing

First Class Air Acquires Oklahoma MRO Vertical Aerospace

First Class Air acquires Bristow, Oklahoma MRO Vertical Aerospace, adding a 226,000-sq-ft structural repair facility.

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First Class Air Acquires Oklahoma MRO Vertical Aerospace

First Class Air has acquired and partnered with Oklahoma-based maintenance, repair, and overhaul (MRO) provider Vertical Aerospace, adding a 226,000-square-foot facility and specialized structural repair capabilities to its growing aviation aftermarket platform.

The transaction, announced in an October 5, 2026, press release, significantly expands the Louisville, Kentucky-headquartered company’s in-house engineering and fabricated part manufacturing capacity. The deal marks a continuation of First Class Air’s strategic expansion following its rebranding earlier in the year, which unified multiple aviation aftermarket companies under a single corporate umbrella to provide comprehensive lifecycle support for aircraft operators.

Expanding structural repair capabilities

The integration of Vertical Aerospace brings specialized in-house repair processes to First Class Air. The Bristow, Oklahoma, facility is equipped with an autoclave and a clean room, alongside dedicated capabilities for phosphoric acid anodizing and cleaning. The site also features non-destructive testing (NDT), heat treating, welding, laser tracking, and advanced engineering and design systems.

Vertical Aerospace specializes in the repair and overhaul of nacelles, thrust reversers, and flight control surfaces. The company also handles complex composite and metallic structural repairs for cowlings, ducts, and exhaust components. These services support a wide range of commercial, cargo, and military aircraft platforms.

First Class Air Chief Executive Officer Isac Roths stated that the acquisition provides a highly experienced team and differentiated capabilities that complement the organization’s existing services across the global aircraft lifecycle.

“Our focus has always been on finding better ways to solve problems for our customers and keep their aircraft operating. By bringing Vertical Aerospace’s structural repair, engineering and fabricated part manufacturing expertise together with our existing distribution, MRO, DER, PMA, teardown and [exchange programs]…” Roths said in the press release.

Following the investment, Vertical Aerospace will maintain its operations at the Bristow facility. Founder and General Manager Tray Siegfried will continue to lead the Oklahoma-based team, ensuring continuity for existing customers and regulatory authorities.

Building an integrated aftermarket platform

The partnership with Vertical Aerospace represents the latest step in First Class Air’s strategy to build a comprehensive, nose-to-tail aftermarket platform. On April 19, 2026, the company rebranded from FCAH Aerospace to First Class Air. This move was designed to unify its specialized operating companies under a single integrated brand, streamlining its market presence and service offerings.

Prior to the October 5 announcement, the First Class Air portfolio consisted of five distinct entities: Cargo Repair, First Class Air Support, Cobalt Aero Services, Innodyne Systems, and Survival Products. Together, these divisions provide parts distribution, Designated Engineering Representative (DER) repairs, Parts Manufacturer Approval (PMA) manufacturing, aircraft teardowns, and component exchange programs.

Vertical Aerospace, which is distinct from the United Kingdom-based electric vertical takeoff and landing (eVTOL) manufacturer of the same name, was founded by Siegfried in December 2012. Over the past 14 years, the company has built a specialized niche in heavy structural repairs. The MRO provider holds repair station certifications from both the Federal Aviation Administration (FAA) and the European Union Aviation Safety Agency (EASA), as well as an AS9100 Rev. D quality system certification, which is a critical standard for aerospace manufacturing and supply chain operations.

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AirPro News analysis

We view this acquisition as a direct response to ongoing supply chain constraints and maintenance bottlenecks affecting commercial and cargo operators. The aviation aftermarket and MRO sector has seen ongoing consolidation as platforms like First Class Air seek to offer comprehensive services to reduce maintenance downtime. By bringing specialized structural repair and fabricated part manufacturing in-house, First Class Air reduces its reliance on third-party vendors for complex composite and metallic work. The addition of a 226,000-square-foot facility with heavy industrial capabilities, such as autoclaves and phosphoric acid anodizing, allows the platform to capture higher-margin structural repair work that operators are increasingly looking to outsource to single-source aftermarket providers.

Photo Credit: First Class Air

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