Mentis Aviation Group (MAG) and AviAsia Aviation Solutions Inc. have started an investment round for an Aircraft Tear Down operation to be based in China.
The project includes a complete build-out of a Tear Down operation, hangar, equipment and Logistics for parts and Engine Distribution/lease along with a long-term lease of the land required to operate with the local and municipal governments in China.
Aircraft Tear Down Operation
Equipment, Parts and Engine Overhauls/Service/Refurbishing
Scrap Metal Sales
Is Seeking $12 million for startup from foreign investors
Is Securing $18 million in loans
Plan to tear down 5 aircraft in year 1 with 1% profit margin
Total revenue for first 6 years in operations will exceed USD $1 billion
Year 2 will see a 7.7% Net Income, Year 3 a 11.7% Net income and year 4 and on will see above 14% net income each year
Aircraft Tear Down Operation Overview
Aircraft Tear Down is a process where commercial airliners such as Boeing and Airbus are purchased from the airlines, leasing companies or other owners, and torn down. 90% of all parts and materials are either overhauled or recycled and sold to various clients worldwide.
There are too many aircraft worldwide retiring that need to be torn down over the next 20 years, the current tear down operators cannot keep up with the demand.
There is high demand for the equipment and metals that come from these aircraft.
Benefits of Local and Municipal Governments to this Project
China is in the unique position that it is growing its domestic airports at a very rapid rate.
All those domestic airports need to ensure that they bring in operators for revenue generation.
Most of these airports are looking for a long-term partner to come in and operate out of their airports, and are willing to provide; land, favorable lease terms, tax benefits, facilities and subsidies (in some cases).
MAG has approached various airport authorities and local governments to discuss the best options and benefits for this project.
Tear Down and Parts Distribution Strategic Partnership
MAG and AviAsia have partnered with Kellstrom Aviation a leader in aviation tear down that provides innovative, service-led inventory supply chain programs to global commercial airlines.
We are proud to represent a wide portfolio of complementary manufacturers to bring value-added services to our global customer base. We maintain a product catalogue of over 400,000 Part Numbers.
We are committed to ensuring our products meet or exceed our customer and industry regulatory requirements. Our leading Quality Management System is fully audited by OEM’s, industry regulators and external organizations.
• ISO 9001:2008
• AS9210 Rev A
• A&P Certified Inspectors
• FCPA Guidelines & Procedures
• Export Compliance
Become a Part of Aviation Development in China
Currently there are only two companies in China that only handle a tear down of aircraft. Our operation will differ as we will provide a complete Sunset Fleet Solution, Aftermarket Parts, Leasing and Trading and a state-of-the-art Inventory Management.
Contact us to learn more about this investment project.
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