06 Apr 2004

Fourth Hangar for TAECO

Taikoo (Xiamen) Aircraft Engineering Company (TAECO), an associate of Hong Kong Aircraft Engineering Company (HAECO), announced today that it has started work on its fourth hangar at Gaoqi International Airport, Xiamen.

Capital cost for the new facility will be US$42 million, to be met from TAECO's existing resources and future cash flows. The hangar will be able to accommodate two wide-bodied aircraft and is scheduled for completion in March 2006. The three hangars in operation at present are able to accommodate six wide-body aircraft simultaneously and up to three more narrow-body aircraft in the middle of each hangar.

Mr. P. K. Chan, Chairman of TAECO, said, "TAECO has become one of the largest and most highly respected Maintenance Repair Organisations (MRO) and Aircraft Modification Centres in Asia Pacific within ten years of its inception. The new hangar will enable us to meet future workloads, particularly the work associated with B747-400 conversions."

TAECO is a joint venture between HAECO (49.55%), Cathay Pacific Airways (9.09%), Japan Airlines (9.09%), Singapore Airlines Engineering Pte (5%), Boeing Commercial Airplane Group (9.09%), Xiamen Aviation Industry Company (10%), and Beijing Keilan Technology Development Service Co. (8.18%).