HAECO Builds Second Hong Kong Hangar - Creates 450 New Jobs

Hong Kong Aircraft Engineering Company (HAECO) announced today that it has signed an agreement with the Airport Authority Hong Kong to build a second hangar at Hong Kong International Airport (HKIA). With the increased capacity, HAECO plans to recruit and train more than 450 new staff over the next three to five years.

At an investment of HK$320 million, the new facility will be able to accommodate two wide-bodied aircraft. Scheduled to start operation in the first quarter of 2007, it will have the capability to undertake all maintenance and modification work currently handled in Hong Kong. A new line maintenance facility, located in the cargo apron area, will also be built to improve services to freighter customers and is expected to be completed in the first quarter of 2006.

"The construction of the new hangar reaffirms our commitment to contribute to the local economy," said Mr. P. K. Chan, Deputy Chairman and Chief Executive Officer of HAECO.

"The increased capacity recognises our optimism of future workloads and will inject a further note of confidence in Hong Kong's capability to project itself as a global aviation hub," Mr. Chan added, noting that total aircraft movements at HKIA in 2004 have increased by 26.5% over 2003.

"We welcome HAECO's commitment to expand its existing facility and we believe the second hangar will strengthen HKIA's status as a hub for maintenance. Given the growth in air movements, there is additional demand for maintenance service and this timely and significant investment from HAECO will further enhance Hong Kong's status as a major regional hub," said Dr. David J. Pang, Chief Executive Officer of Airport Authority Hong Kong.

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

Shaking hands at the signing ceremony, Mr. P. K. Chan (left) and Dr. David J. Pang