Fire at HAECO's landing gear MRO JV results in HK$4m loss

This story is sourced from Pro
See more Pro news »

A fire at Taikoo (Xiamen) Landing Gear Services Co (TALSCO) late last year has cost the company around HK$4 million ($516,000) in losses.

The fire, which broke out in November 2012, was caused by an electrical failure of the circuits of a temperature control cabinet, says a Hong Kong Aircraft Engineering Co (HAECO) spokeswoman.

"There were structural damages to the production buildings that needs to be restored," she adds.

HAECO, which holds a 50% stake in TALSCO, revealed in its financial statement on 12 March that it has recognised provisions for impairment and other losses, net of insurance receivables, of around HK$4 million because of the fire.

No work has been done at the premise, located at Gaoqi International Airport in Xiamen, since the fire. HAECO is expecting operations to resume only nine months later.

On work lost, the company would only say that "the necessary arrangements have been made" with customers.

TALSCO provides repair and overhaul services for aircraft landing gear and related systems.

The company, opened in 2008, is a joint venture between HAECO, Cathay Pacific Airways, Japan Airlines and four other partners.