ANDREW DOYLE / HONG KONG Company to discuss with Airbus possibility of a passenger-to-freighter modification line in Hong Kong

Hong Kong Aircraft Engineering (HAECO) plans to discuss with Airbus the possibility of establishing an A300 passenger-to-freighter (PTF) conversion line in Hong Kong if Cathay Pacific opts for the type to meet its regional freighter requirement.

Entry into the A300 conversion market would further HAECO's strategy of "moving up the value chain" in terms of the maintenance and modification services it provides, says chief operating officer John Paterson. Cathay and parent Swire Pacific control just under 60% of HAECO.

The airline is looking for about six medium-sized freighters for its Air Hong Kong subsidiary, in which DHL Worldwide Express is buying a 30% stake as part of a joint venture agreement. They are due to be introduced from late next year, but Cathay could source interim freighters if it cannot acquire its own aircraft in time.

Although Cathay's internal preference is for converted A300-600s, it is still considering new-build A300 freighters and new or converted Boeing 767-300s. Cathay Pacific chief operating officer Philip Chen says the carrier will opt for "whichever is the best deal for the new company" irrespective of whether HAECO is offered the opportunity to perform A300 conversions.

Dresden-based EADS-EFW has been designated by the EADS board as the official centre for passenger-to-freighter conversions of Airbus aircraft. While Airbus itself is the holder of the supplemental type certificates, wholly owned EADS unit EFW considers itself to be the de facto owner of the approvals because it paid for their development, say industry sources.

EADS and its 80%-owned subsidiary Airbus are yet to resolve the question of whether Airbus should be able to supply design data and license outside contractors to perform conversions, the sources add.

Meanwhile, BE Aerospace subsidiary Flight Structures (FSI), which has acquired the BAE A300 conversion, is also expected to bid for the Air Hong Kong deal (Flight International, 26 November-2 December). It says it is looking for third-party partners to undertake the work, but Paterson has indicated that HAECO would prefer to link with an original equipment manufacturer such as Airbus.

HAECO has already converted a number of 747 Combis to full-freighter configuration, and Paterson says the company will concentrate on servicing newer-generation aircraft including Airbus types and Boeing 777s, and offer shorter turnaround times, while it "makes more sense" for man-hour intensive overhauls of older aircraft to be performed by Taikoo (Xiamen) Aircraft Engineering, in which it holds a 49.5% stake.

Source: Flight International