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    Following is a speech by the Chief Executive, Mr Donald Tsang, at the Hong Kong Aircraft Engineering Company Limited (HAECO) Ground Breaking Ceremony for the Second Hangar at Hong Kong International Airport this morning (August 3):

Mr [David] Turnbull, distinguished guests, ladies and gentlemen,

    It is a great pleasure to join you today for this very special occasion - a ground-breaking day in more ways than one for HAECO and our airport.  

    HAECO has been an integral part of the Hong Kong aviation scene since it started operations at Kai Tak more than half a century ago. Since then, the company has flourished on its excellent standards of service and on Hong Kong's position as Asia's major transportation hub.

    HAECO is now one of the world's top five independent aircraft maintenance companies. It provides a full range of aircraft maintenance services. HAECO's client list extends to more than 70 airlines, some of which come to Hong Kong specifically for maintenance services. This is a testament to the professionalism and service excellence offered by your managers, engineers and technicians. Hong Kong is indeed fortunate to have such a high-calibre company investing and developing talent in this specialised field. Top-notch maintenance services are important to airlines when they consider opening up new routes. This explains why HAECO's contribution has been significant to Hong Kong's development as a premier aviation hub.

    Last year was truly remarkable for Hong Kong's aviation history. Hong Kong International Airport was once again, for the fifth year running, voted the world's best airport. And it continues to be the world's busiest airport for international cargo. Last year, we handled a record 37 million passenger movements and 3.1 million tonnes of cargo. We expect to see new records set this year.  

    HAECO's decision to expand its facilities will further enhance the capabilities of our airport. By investing $320 million in this second hangar, some 450 additional skilled jobs will be needed. This project is not just a vote of confidence in the potential of our aviation industry, it is also a vote of confidence by one of our leading companies in the future of Hong Kong, Asia's world city.

    Before I close, I must congratulate HAECO on another ground-breaking development with the Airworthiness Division of our Civil Aviation Department. For the first time, Boeing Corporation allows a full test flight programme on a new aircraft type to be performed outside the United States. The testing of the Boeing 747-400 Special Freighter in Hong Kong is a tribute to the engineering expertise of HAECO and to the Civil Aviation Department's high levels of regulatory standards. Very well done!

    I would like to extend my best wishes to HAECO and all its staff on this special occasion. I am sure that HAECO will continue to play a major role in maintaining - in every sense of the word - Hong Kong's position as a premier centre of international excellence in the aviation industry.

    Thank you.

Ends/Wednesday, August 3, 2005

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