General Electric has signed a memorandum of understanding with Xiamen Aviation Industries of China to set up an on-wing engine-support centre at Xiamen's Gaoqi International Airport, in the southern coastal province of Fujian, in a move which could bring it closer to nearby Taikoo Aircraft Engineering (TAECO).

GE confirms that it has held talks on co-operation with TAECO, which is Xiamen's other resident engine maintenance joint venture and in which Xiamen Aviation already holds a 13.4% stake. TAECO is now entering its third year and is expanding its airframe and component maintenance and overhaul site with the construction of a second two-bay hangar.

The Hong Kong Aircraft Engineering (HAECO)-managed company, however, has sought to play down its contacts with GE and refuted an earlier report that it had been conducting a study of the local engine-maintenance market. "Several companies are keeping us apprised of developments," says TAECO chairman John Slosar.

GE's proposed Xiamen investment would be targeted at supporting a range of engines, including the large number of CFM International CFM56 series of turbofans in service with China's regional carriers, as well as competing Rolls-Royce and Pratt & Whitney families of powerplants. The intended scope of work would be up to and including module-change capability.

Source: Flight International