Hong Kong Aircraft Engineering Company Limited (HAECO) announces that it has reached an agreement with the Airport Authority Hong Kong (AA) to construct a third hangar in two phases at Hong Kong International Airport (HKIA), adjacent to its existing facilities - even before its second hangar has been completed. With the increased capacity, HAECO plans to recruit and train a further 350 engineers and mechanics over the next two years for the first phase of the third hangar. This is in addition to the 450 employees currently being trained for its second hangar.

At an investment of HK$380 million, the first phase of the new facility which will encompass an area of 15,750 sq. m. will be sufficient to be able to accommodate two large wide-body aircraft. Scheduled to start operation in the first quarter of 2009, it will have a specialised focus on efficient provision of light maintenance checks.

The agreement between the AA and HAECO also provides for HAECO to construct the second phase of the third hangar to be completed sometime before 2015. The total added site area on which the new hangars will be built is 26,550 sq. m., which is a very considerable 43% increase on the footprint for the first two hangars. As part of the agreement, the master franchise under which HAECO operates both line and base maintenance will also be extended by five years to 2036, subject to certain conditions.

"I am delighted to announce this agreement which reaffirms our long term commitment to contribute to the local economy, and demonstrates our faith in the HKIA as our home base", said Mr. P.K. Chan, Deputy Chairman and Chief Executive Officer of HAECO.

"The increased capacity of 385,000 manhours for the first phase of the third hangar recognises our optimism of future increased workload and should inject a further note of confidence in Hong Kong's capability to project itself as an international and regional aviation centre. The provision of the second phase allows us to plan our future with certainty, and underpins the future of HAECO in Hong Kong," he said.

Chief Executive Officer of the AA Dr. David J. Pang welcomed the construction of the third hangar at the HKIA by HAECO. "The burgeoning economy of the Pearl River Delta region has fuelled the continued growth of HKIA, resulting in rising demand for aircraft base maintenance service. HAECO's building of the third hangar will enhance HKIA's leading role in aircraft service and maintenance, further strengthening Hong Kong's position as a premier aviation hub in the region," added Dr. Pang.

HAECO, one of the world's leading aeronautical engineering groups, is engaged in the maintenance, modification, repairs and overhaul of commercial aircraft and their components. At HKIA it is currently the only aircraft maintenance facility able to offer a comprehensive package covering transit and technical services with full hangar support. It is publicity listed on the Hong Kong Stock Exchange.