HONG KONG (March 21): French aeronautic services company Elior Group will set up its Asia headquarters for aircraft parts dismantling, recycling and trading in Hong Kong, which could elevate the city's status as a regional aviation hub.

Elior, a subsidiary of the Derichebourg Group, has signed a memorandum of understanding on the move with the Airport Authority Hong Kong (AAHK), the Hong Kong government said in a press release on Friday.

Hong Kong's status as an Asian aviation hub has been hit by a drop in passenger and cargo flights in recent years due to disruptions from Covid-19 and a decrease in flights using Russia's airspace due to the war in Ukraine.

The agreement with Elior Group is the government's latest attempt to help boost the sector, which is starting to restore flights back to pre-pandemic levels and inaugurate new routes to mainland China and beyond.

Secretary for Transport and Logistics Mable Chan said Elior and AAHK's partnership would enrich Hong Kong's position as an international aviation hub, and support "the aviation development of our country as well as the Asian region as a whole."

Hong Kong will also become the first aircraft parts processing and trading centre in Asia through this deal.

There is growing demand globally for recycled aircraft parts — from fuselages and engines to doors and flight controls — at cheaper prices as commercial fleets age.

The Asia-Pacific region has emerged as an important market for such services due to its growing aircraft fleet driven by low-cost and regional travel.

"We look forward to further developing and exploring new opportunities in Hong Kong, and from here expand across Asia," Elior chairman and CEO Daniel Derichebourg said.
 
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