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Haeco challenge

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Hong Kong Aircraft Engineering Co (Haeco) has been commissioned by Air China to convert a Boeing 747-200 combi aircraft into a freighter.

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The conversion, the company's fourth on international airliners, is set to cost more than US$11 million. Work began yesterday.

Haeco may in future face competition from a sister company. A strategic stake in Taikoo Aircraft Engineering Co (Taeco) - in which Haeco has a stake, has been acquired by Boeing Co.

As part of the deal, Xiamen-based Taeco will become qualified to perform freighter conversions on Boeing 747-200 aircraft - potentially putting it in direct competition with Haeco.

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