Olongapo SubicBay BatangGapo Newscenter

Tuesday, January 02, 2007

Whampoa sets up Subic aircraft repair hub

SUBIC BAY FREEPORT—A unit of China Southern Airlines Co. Ltd. and Hong Kong’s Hutchison Whampoa (China) Ltd. will set up a parts and maintenance facility here to partly service the operations of giant air courier Federal Express.

Subic Bay Metropolitan Authority chairman Feliciano Salonga said the SBMA board had approved the proposal of Guangzhou Airport Maintenance Engineering Co. Ltd. (Gameco) to put up the aircraft maintenance facility.

“The strategic location and the availability of highly trained workers are major factors which make Subic Freeport more conducive for regional hub operations in the Asia-Pacific region,” Salonga said.

Gameco, a joint venture between China Southern Airlines and Hutchison Whampoa (China), operates in Guangzhou Baiyun International Airport.

SBMA administrator and chief executive Armand Arreza said Gameco offered to provide “all line maintenance and aircraft parts storage and handling functions” associated with the operations of FedEx.

He said Gameco general manager Thomas Tsiang had committed to invest $729,000 for the facility, which will initially employ 60 workers.

Arreza said Gameco, as an outsourced aircraft maintenance provider of FedEx, would occupy building 8045 located within the leased areas of FedEx up to December 2008.

“Gameco is setting its sight to improve future operations in Subic Freeport and a regional aircraft maintenance hub for other clients is being projected by the SBMA,” said SBMA official Ronnie Yambao

Gameco owns contracts to provide heavy maintenance service to several customers outside China, including B757-200 aircraft modification and painting services for Rolls-Royce Aircraft Management Ltd.

Another B757-200 aircraft from Orient Thai Airline is also undergoing maintenance with Gameco while local airline Cebu Pacific Air has contracted the company to perform landing gear replacement and modifications in one of its B757 airplanes.

Gameco also obtained maintenance contracts from Asiana Air of South Korea for two of its B737-400 aircraft.

In June 2006, Gameco completed the first conversion of a B737-300 passenger airplane to a more useful cargo aircraft for China Postal Airlines.

The SBMA, meanwhile, is drawing up alternative plans to offset the socio-economic and business impact of the scheduled pullout of FedEx by the end of next year.

The SBMA is holding exploratory talks with Hong Kong-based airport operators with tie-ups with different airlines servicing regular cargo terminals.
By Cecille Garcia - Manila Standard Today

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