A joint venture under the Boeing Co yesterday started construction of its first hangar in China to expand its network of aircraft modification and repair service business.

The hangar, based at Shanghai Pudong International Airport and which can accommodate two wide-body aircraft when ready in April 2009, is built under the first phase for Boeing Shanghai Aviation Service Co.

When its second phase is completed in 2010, Boeing Shanghai will have a four-bay hangar capable of housing four 747 or 777 wide-body aircraft, providing aircraft modification, maintenance, repair and overhaul services.

"We are excited about the opportunities offered by the exponential growth in aviation in China," said Tim Premsalaar, CEO of Boeing Shanghai.

"Boeing Shanghai will not only offer its clients the highest safety and the finest quality, it will also improve customer profitability by providing competitive prices and rapid resolution of technical issues," Premsalaar said.

Boeing Shanghai is the US plane maker's first maintenance repair & overhaul joint venture outside the United States. Boeing, Shanghai Airport (Group) Co Ltd and Shanghai Airlines Co Ltd invested US$85 million to set up the venture last October. Boeing holds a 60-percent stake in the venture, with Shanghai Airport holding 25 percent and Shanghai Airlines holding the balance.

It has signed lease contracts with Shanghai Airlines for a hangar bay for its aircraft maintenance services while its own hangars are under construction.

(Shanghai Daily January 23, 2008)