Firm expands airport maintenance activities as competition intensifies with Haeco
China Aircraft Services, whose shareholders include state-owned China National Aviation Corp and Hutchison Whampoa, will spend more than HK$300 million to build a maintenance hangar at Hong Kong airport as it expands its service portfolio, according to a senior executive.
The Airport Authority last week awarded China Aircraft a 25-year franchise from 2008 and expanded its remit to allow the company to branch out into 'base' maintenance activities, intensifying its competition with Swire's Hongkong Aircraft Engineering Co (Haeco) at Chek Lap Kok.
Angus Cheung Him-wah, China Aircraft's general manager, said the facility will be operational by July 2008 just as its present 10-year franchise expires.
'After eight years of operating in Hong Kong we reached the stage where we felt we needed to expand our technical capabilities and widen the scope of our services,' Mr Cheung said. 'So it was important for us to negotiate base maintenance services into the new franchise.'
The company's present contract at the airport restricts it to 'line' maintenance services, which include cleaning aircraft between flights and providing towing assistance.
