Chongqing- Singapore Airlines Aircraft Spares Bonded Distribution Centre (Chongqing) was unveiled on Monday in southwestern China's Chongqing Municipality, marking the first airline-based aircraft spares bonded customs supervision model in China. 

Under the China-Singapore (Chongqing) Demonstration Initiative on Strategic Connectivity (CCI), this innovation represents that China and Singapore have achieved remarkable progress in institutional opening up in the aviation industry.

Hu Henghua, Deputy Secretary of the Communist Party of China Chongqing Municipal Committee and Mayor of Chongqing Municipality, and Josephine Teo, Minister for Communications and Information & Second Minister for Home Affairs, Singapore, witnessed the unveiling ceremony online.

Cooperation in the aviation industry

As a world-renowned international aviation enterprise, Singapore Airlines (SIA) has provided excellent service, high-quality products, and convenient transportation for 101 cities in 40 counties.

SIA has opened international passenger air routes to Singapore for 25 cities in China, which has built a smooth air corridor for economic cooperation and cultural exchange between China and Singapore.

Since the launch of CCI, SIA has actively participated in constructing dual international hubs in Chongqing and Singapore.

Throughout the Covid-19 pandemic, SIA has kept one passenger flight and two cargo flights per week. Medical materials and international cargo can arrive at the destination on time.

Challenges appeared

With business expansion, SIA has devoted the crew of A320, A330, A350, A380, B737, B777, and B787 to join in China's air routes.

At the same time, a big challenge appeared as more aircraft spares were required in aviation maintenance.

In the past, the allocation of bonded aircraft spares needed cumbersome procedures. Different local customs require independent filing and application procedures.

Some destinations lack a bonded aircraft spares warehouse, so the airplane needs to carry the aviation parts during the flight, which consumes transportation capacity. As a result, the operating cost went high, and the maintenance efficiency was low.

Innovation mechanism

Chongqing Customs District, China-Singapore (Chongqing) Demonstration Initiative on Strategic Connectivity Administrative and Chongqing Airport Group, support Singapore Airlines to build the Singapore Airlines Aircraft Spares Bonded Distribution Centre (Chongqing) at Chongqing Jiangbei International Airport.

So SIA could apply bonded aircraft spares in Chongqing and distribute them across customs areas as needed.

After several rounds of testing, the mechanism showed strong operability and turned out good results.

"Chongqing Customs conduct the supervision through the unique aircraft spares serial number so that SIA does not need to repeat file procedures at other airport destinations," said an official with the Chongqing Customs District.

"The establishment of the bonded aircraft spares distribution center has effectively reduced our operation cost and facilitated the distribution and circulation of our aircraft spares at different destinations. Because we do not need to rent a warehouse to store our aircraft spares and avoid carrying them during the flight, so the transportation capacity could be saved," said Ng Boon Kiat Melvin, General Manager China of SIA.

Chongqing is a highland of the international logistic hub in Southwest China, and Singapore has also played an important role in the global transportation market. 

In the future, Chongqing and Singapore will jointly empower the dual hub and enhance economic cooperation with ASEAN countries.