The engine for outbound repair is in transit. [Photo/WeChat account of Xiamen FTZ]
A bonded leased aircraft engine, whose lease term had expired, recently completed customs declaration procedures at the Xiangyu Comprehensive Bonded Zone in the Xiamen Free Trade Zone. It will now be sent abroad for six months of maintenance and testing. This marks the official launch of Fujian province's first bonded leasing aircraft material outbound maintenance business.
The engine in question was originally leased by XAERO in 2023 to a domestic airline under a bonded goods leasing arrangement. Upon expiration of the lease, the engine was returned and transported back to the Xiangyu Comprehensive Bonded Zone.
Due to a malfunction, the engine requires specialized maintenance. Once repaired, it can re-enter the leasing cycle, which helps revitalize the company's existing assets.
Historically, whether opting for outbound maintenance or domestic repair within China, servicing aircraft engines under bonded status involved cumbersome procedures and imposed capital occupancy pressures on enterprises.
By leveraging its financial leasing platform, Xiamen FTZ has established an "expert and butler" service system that brings relevant parties together for collaborative discussions to develop actionable solutions.
The zone provides clear guidance and efficient review for equipment transfers, utilizing the "1233 Model" export process designed for goods moving into or out of bonded warehouses and requiring only a single export declaration.
This innovative model eliminates the need for a guarantee letter, saving over 8 million yuan ($1.13 million) in working capital occupancy per engine and significantly reducing corporate operating costs.
The engine for outbound repair is placed in the bonded warehouse. [Photo/WeChat account of Xiamen FTZ]