Cargo Conversion Partnership
Pemco Aviation Group, Taikoo
Aircraft Engineering Company (TAECO), and Taikoo (Shandong)
Aircraft Engineering Company (STAECO) signed an agreement in Jinan
on January 7th establishing a cargo conversion partnership for
China and the Asia Pacific region. Under the agreement, the
companies will jointly market freighter conversions and perform
conversions at TAECO / STAECO's facilities in China.
Participating in the ceremony from Pemco were Harold "Skip"
Bowling, Vice Chairman of the Board of Pemco Aviation Group; Kevin
Casey, Vice President, Commercial Business Development; and Bob
Watson, Managing Director, Asia Pacific. Prominent among the many
TAECO and STAECO executives present were P.K. Chan, Chairman of
TAECO and Hong Kong-based HAECO; Joseph Wong, TAECO Board member
and HAECO executive; Jia Fu Wen, Chairman of STAECO and President
of Shandong Airlines; John Chi, Chief Operating Officer of TAECO;
Huang En Fang, General Manager of STAECO and Vice President of
Shandong Airlines; and Sam Goh, General Manager, Engineering and
Projects of TAECO.
The alliance will focus initially on B737 aircraft, and plans to
cooperate on other aircraft models, both those for which Pemco
currently holds Supplemental Type Certificates (STCs) and other
models as markets develop. Pemco will provide technical,
operational and quality oversight and guidance while TAECO / STAECO
will provide Mainland-based production facilities, a seasoned
workforce, and draw on their relationships with aircraft operators
in the region.
In attendance representing General Administration of Civil
Aviation of China (CAAC) was Xu Chao Qun, Deputy Director General,
Flight Standards Department. Commenting on the significance of the
event, Xu stated, "This is an historic hour in China Aviation and
CAAC will fully support this program."
Ron Aramini, President and Chief Executive Officer of Pemco
Aviation Group, explained the significance of the agreement. "The
air cargo market in China is experiencing the fastest growth in the
world, with more than 20% annual growth over the past five years
and projected growth exceeding 10% annually. In order to
effectively pursue this market and support our current and future
customers, Pemco felt it important to have a strong Chinese
partner. Through this alliance with TAECO / STAECO, we now have a
partner that will provide excellent customer relationships and
extensive experience in freighter conversion programs and aircraft
maintenance."
PK Chan, Chairman of TAECO stated, "This partnership is very
beneficial for both parties. It allows us to offer our customers an
expanded spectrum of cargo conversions. Pemco's B737-300 freighter
and QC are the only B737 conversions currently approved by the CAAC
and we are pleased to be able to provide this program to our
customers."
Aramini added, "This partnership firmly establishes Pemco's
presence and commitment to China and the rest of the Asia Pacific
region. It is an important step in our strategy to significantly
expand our cargo conversion business in 2005. We look forward to
working with our new partners, TAECO / STAECO." The companies plan
to begin conversions in China this year.