Taikoo Aircraft Engineering Co (Taeco) is expected to break even next year after going into full operation by the middle of this year, according to a Swire Pacific spokesman. The joint-venture facility, which begins servicing its first Cathay Pacific Airways Boeing 747-200 tomorrow, has just won approval from the mainland and Hong Kong regulatory authorities. The arrival of the jumbo would mark the official opening of the first hangar of the two-bay facility at Xiamen airport in Fujian province. The second hangar would open for business by the middle of the year, the Swire spokesman said, adding the company was forecast to make a 'small loss' this year but should break even by the end of next year. The US$63 million facility is 41 per cent owned by Hong Kong Aircraft Engineering Co (Haeco), 20 per cent by the Xiamen government, 10 per cent by Cathay, 10 per cent by Singapore Airlines, 10 per cent by Japan Airlines and 9 per cent by the Civil Aviation Administration of China (CAAC). Swire owns 27 per cent of Haeco. The spokesman said Taeco would concentrate initially on servicing 747s, with a guaranteed workload from the shareholder airlines. With two bays at present, more land is available for expansion to four bays in the second phase and ultimately six bays. No commitments have been made to expand. Taeco would initially service the aircraft of its shareholders but would look for other business when it goes into full operation. The spokesman said final certification had just been granted by the CAAC and Hong Kong's Civil Aviation Department, and other international regulatory authorities should approve it by the end of the year. The Federal Aviation Administration of the United States is involved in the approval process, as are European Joint Airworthiness Authorities, Japan's Civil Aviation Board and Singapore's Civil Aviation Administration. It has the capability to perform heavy C and D checks, required under civil aviation law, and structural modifications, interior refurbishing, interior reconfiguration and repainting. Haeco has seconded 123 employees to the site and 128 mainland employees have completed two years of training at Haeco's Kai Tak headquarters. Another group of 134 mainland workers will complete their training by June.