HONG KONG: The city will bolster its ability to provide aircraft maintenance services in the region with Friday's launch of a HK$400 million aircraft maintenance hangar at the Hong Kong International Airport.

The complex, property of the China Aircraft Services Ltd (CASL) and Hong Kong's third maintenance services facility, has opened up about 200 new job opportunities in the aviation industry, mainly technicians and aviation repair workers.

The 10,000 square-meter compound, which took two years to build, officially began operation Friday with an opening ceremony officiated by Secretary for Transport and Housing Eva Cheng and Deputy Director of the Liaison Office of the central government in the HKSAR Guo Li.

The new hangar provides services such as maintenance checks, major defect rectifications and cabin cleaning to airline companies from the Greater China region, Europe and America operating flights in and out of Hong Kong.

Eva Cheng said: "We are aware of the challenges facing Hong Kong's aviation industry. Recently, we have observed a significant decline in passenger and cargo traffic due to the introduction of direct charter flights between the mainland and Taiwan as well as the human swine flu.

"We cannot predict when the next upturn will come, but we will be fully geared up when it does," she said.

Designed to house one wide-body and a narrow-body aircraft at the same time, the hangar is expected to carry out maintenance works for 100 aircraft each year. This allows for simultaneous servicing of a large Boeing 747 aircraft and a smaller aircraft used for regional flights.

CASL Chief Executive Officer Angus H.W. Cheung said: "We see huge opportunities for the Hong Kong International Airport brought about by continued developments and connections between Hong Kong and the Pearl River Delta."

Hong Kong has a competitive advantage in the aviation industry due to the Closer Economic Partnership Arrangement, he said. The city can better source aircraft parts and deliver quicker and more efficient service to clients.

"Our workforce is very important to the long-term success and future expansion of the company," he said.

He indicated that CASL intends to set up a technical training school to provide the necessary skills and training for the future development of its staff.

He expects the company to generate good business at the facility as the aviation maintenance industry in Asia Pacific is expected to grow by 28 percent in the coming decade.

In addition, he said the hangar can service European and American airlines. "We have found that many European and American airline operators are increasingly outsourcing aircraft maintenance services. We can benefit from this trend."

CASL is currently offering services to shareholders United Airlines, China Airlines as well as international airlines such as British Airways, Lufthansa Airlines, Air France and Japan Airlines.

Its aircraft cabin cleaning services account for about 50 percent of the local passenger flight market.

(HK Edition 05/23/2009 page5)