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October 16, 2009

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Home » Business » Transport

JV opens MRO hangar

BOEING Shanghai Aviation Services Co yesterday opened a two-bay hangar in Shanghai to boost its aircraft maintenance business in the world's largest market for Boeing commercial aircraft.

The new hangar, based at Shanghai Pudong International Airport, is capable of housing two Boeing 777 wide-body jets and will allow the company to provide aircraft maintenance, repair and overhaul services to airlines.

"We aim to provide the shortest turnaround time, good quality service and competitive prices for customers," said Marco Cavazzoni, vice president of technical services at Boeing Commercial Aviation Services.

The hangar will serve Shanghai Airlines and other carriers such as Taiwan's EVA Air.

Boeing Shanghai will also consider building a second phase of the facility but no timetable has been set.

Boeing Shanghai is a US$85 million joint venture formed by Boeing, Shanghai Airport Authority and Shanghai Airlines Co in 2006 to provide MRO services. Boeing owns 60 percent of the venture, Shanghai Airport holds 25 percent, and Shanghai Airlines having the balance.

As aircraft maintenance costs account for 15 percent of airlines' total costs, more foreign carriers have their aircraft maintained in China due to the lower prices, market observers said.


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