HAECO GROUP Last update 2 Sep 2020 Author Corporate Communications - - PowerPoint PPT Presentation

Last update 2 Sep 2020 Author Corporate Communications Reference Number V01.2020

HAECO

GROUP

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Contents

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Corporate Overview

◼ Swire Pacific

About HAECO Group

◼ HAECO Group Milestones ◼ HAECO Group Portfolio ◼ Geographical Presence ◼ Operational Experience ◼ Customer Profile ◼ Key OEM Relationships ◼ Sustainable Development

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Group Services

◼ Airframe Services

◼ Airframe Maintenance and Modification ◼ Cabin Reconfiguration ◼ Line Services ◼ Freighter Conversion

◼ Cabin Solutions

◼ Interior Products ◼ Cabin Integration ◼ Private Jet Solutions

◼ Engine Services

◼ Engine Overhaul ◼ Global Engine Support

◼ Component Services

◼ Component Repair and Overhaul ◼ Inventory Technical Management

◼ Others

◼ Fleet Technical Management ◼ Parts Manufacturing ◼ Technical Training

◼ Appendix: Group Capabilities

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Corporate Overview

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Corporate Overview

Market Capitalisation*

USD12.9bn

Revenue

HKD85.7bn

Ratings

A3 (Moody’s); A- (S&P); A- (Fitch)

Property Beverages

Aviation

Marine Services Trading & Industrial

* As of 31 Dec 2019 For the year ended 31 December 2019 Swire Pacific is publicly listed on the Hong Kong Stock Exchange

Profit attributable to shareholders

HKD9.0bn

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Corporate Overview

Aviation

Catering Cargo Handling

Engineering & Maintenance

Ground Services Airlines

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HAECO Group Milestones

1950’s 1960’s 1970’s 1980’s

◼ In November 1950, established by the merger of Swire’s Pacific Air Maintenance & Supply Company (PAMAS) and Jardine Air Maintenance Company (JAMCo) ◼ Acquired capabilities

• n L1011 aircraft and

RB211 engines ◼ In 1975, HAECO became an official member of the Swire Group when Swire Pacific increased its shareholding to 51% ◼ In 1965, floated on the Hong Kong Stock Exchange ◼ In 1968, began construction of Asia’s largest hangar ◼ The number of international airlines and volume of transits significantly increased ◼ First aircraft conversion – upgraded a L1011-1 series to L1011-150

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HAECO Group Milestones

1990’s 2000’s 2010’s

• nwards

◼ In 1993, formed HAECO Xiamen ◼ In 1999, formed STAECO in Jinan ◼ In 1997, formed HAESL with Rolls-Royce ◼ In 1998, relocated to new Hong Kong International Airport ◼ In 2006 and 2009, HAECO opened second and third hangars ◼ In 2007, HAECO Xiamen

• pened its fifth hangar

◼ In 2007, formed HAECO Landing Gear Services ◼ In 2008, formed TEXL and HAECO Composite Services ◼ In 2011, HAECO Xiamen

• pened sixth hangar

◼ In 2011, formed HAECO Shanghai ◼ In 2012, formed HAECO ITM ◼ In 2014, established HAECO Component Overhaul in Xiamen ◼ In 2014, acquired TIMCO ◼ In 2018, HAESL opened Phase VI engine overhaul facility ◼ In 2020, acquired Jet Engine Solutions and rebranded as HAECO Global Engine Support ◼ In 2018, HAECO became a wholly-owned subsidiary

• f Swire Pacific

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About HAECO Group

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HAECO Group Portfolio

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Geographical Presence

Source of world map: Wikimedia Commons Document Classification: Public

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Geographical Presence

Source of world map: Wikimedia Commons Document Classification: Public

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Geographical Presence

Source of world map: Wikimedia Commons Document Classification: Public

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Geographical Presence

Source of world map: Wikimedia Commons Document Classification: Public

Customer Profile

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Key OEM Relationships

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Sustainable Development

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Our aims: ◼ To create long term value for our stakeholders through the sustainable development of our businesses and communities in which we operate. ◼ To be leaders in sustainable development in the industries in which we operate. ◼ To grow our business in a sustainable way, by striving:

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To cause zero harm to our employees, contractors and stakeholders;

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To minimise our impact on the environments in which we operate

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To excel as a responsible and caring company within the communities in which we operate

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To continually improve our business to ensure our operations are as efficient and effective as possible

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Group Services

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HAECO Group Services

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HAECO Group One of the world’s leading aircraft engineering and maintenance groups, offering a comprehensive range of airframe, cabin, engine and component services. Airframe Services

Offers airframe maintenance, cabin reconfiguration, structural modification, freighter conversion fulfillment, as well as line services covering transit checks and certification, defect clearance, cabin management, ramp services and 24/7 AOG support across Asia and the United States.

Component Services

Provides Inventory Technical Management, component repair and overhaul services for hydraulic, mechanical, avionics and pneumatic systems across the Airbus and Boeing commercial aircraft fleets, and with wheels and brakes, aerostructures, landing gear and APUs through the Group’s operating companies.

Engine Services

Operates world-class repair,

• verhaul and testing facilities for

Rolls-Royce Trent engines in Hong Kong, and a GE Aviation- authorised GE-90 facility at Xiamen in the Chinese mainland. The Group also provides 24/7 on- wing and off-wing engine support in Hong Kong and around the world.

Cabin Solutions

Provides turnkey cabin integration solutions for commercial aircraft and private jets, covering design engineering, certification and vendor

• management. The Group is an

authorised aircraft seat and cabin interior products OEM. Document Classification: Public

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Airframe Services

Airframe Maintenance and Modification – Hong Kong and Xiamen

◼ HAECO provides a broad range of maintenance checks including scheduled checks up to D checks, Heavy Maintenance Visits (HMVs) and equalised checks that tailored to individual customers’ Aircraft Maintenance Schedules (AMS) at its nine hangars, with a total of 39 bays, in Hong Kong and Xiamen ◼ Structural modification, which can be carried out in conjunction with maintenance checks, is supported by in-house fabrication and repair services for structural

• parts. Dedicated backshops ensure that work meets

each customer’s requirements, such as crew-rest modification ◼ HAECO Hong Kong is an Aviation Partners Boeing designated authorised modification centre. Its accomplished engineers have completed around 110 winglet modifications on Boeing 737NG, 757 and 767 aircraft

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Airframe Services

Airframe Maintenance and Modification – Americas

◼ HAECO Americas offers heavy airframe maintenance, structural modification, installation, composite repair and fabrication, and on-site engineering at its Greensboro, North Carolina and Lake City, Florida facilities ◼ The Greensboro facility consists of five multi-use hangars with 24 bays and three standalone nose docks. Its campus, spanning over 94,000 sqm, is located at the Piedmont Triad International Airport, and is accessible via two 3,000m runways ◼ The Lake City facility consists of seven multi-use hangars with 14 bays. Its campus, spanning over 49,000 sqm, is located at the Lake City Gateway Airport, where HAECO also operates the control tower and its 2,400m runway

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Airframe Services

Cabin Reconfiguration – Hong Kong and Xiamen

◼ At its facilities at Hong Kong International Airport, HAECO Hong Kong provides full-fledged cabin reconfiguration services range from minor modifications to full retrofits. Support is provided by a dedicated seat maintenance shop, as well as in-house fabrication shops that can replace carpets, curtains and cabin cosmetics ◼ From minor modifications to turnkey retrofits, HAECO Xiamen provides cabin reconfiguration services covering programme management, design engineering, vendor management, in-house manufacturing, installation and certification (HKCAD, CAAC, FAA and EASA). These are supported by its technical and engineering expertise, as well as comprehensive in- house fabrication and seat maintenance facilities

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Airframe Services

Cabin Reconfiguration – Americas

◼ HAECO Americas offers cabin reconfiguration services at its Greensboro, North Carolina and Lake City, Florida

• locations. Through its Cabin Solutions division, it offers

engineering and certification services as an FAA- approved Organisation Designation Authorisation (ODA). HAECO provides turnkey reconfiguration services as airlines’ single trusted partner ◼ Services include:

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Design Engineering

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Manufacturing

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Certification

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Installation

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Maintenance

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Continued Airworthiness

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Airframe Services

◼ Locations: Asia - Hong Kong, Xiamen, Jinan, Chengdu Americas - Greensboro, NC; Lake City, FL ◼ Number of hangars: 28 ◼ Approvals: HKCAD, CAAC, FAA, EASA, Canada TC, Bermuda CAA and 26 other authorities

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◼ HAECO provides line services for over 140 airlines at its 18 line services stations in Hong Kong, the Chinese mainland, and USA ◼ Comprehensive line services cover transit checks and certification, defect clearance, engine on-wing services, cabin management, ramp services, and round-the-clock AOG support ◼ Maintenance checks up to full 'A' checks on most commercial aircraft types with various combination of engine types ◼ ArIES (Aircraft Interior Enhancement Solutions) provides 24/7 maintenance support services to manage cabin quality and standards at the Hong Kong International Airport

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Airframe Services

Line Services

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Airframe Services

Line Services

Locations: ◼ Asia: Hong Kong, Xiamen, Beijing, Chengdu, Chongqing, Hangzhou, Harbin, Jinan, Nanjing, Ningbo, Shanghai (Pudong), Shanghai (Hongqiao), Shenzhen, Tianjin, Wuhan, Xi’an and Zhengzhou ◼ Americas: Greensboro, North Carolina, USA

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Airframe Services

Freighter Conversion

◼ Collaborating with Original Equipment Manufacturers, Supplemental Type Certificate holders and engineering companies, the Group also provides freighter conversion fulfillment services, with strong experience in Boeing 747 passenger-to-freighter conversion over the years ◼ Service covers major commercial aircraft types including Boeing 737 and 757 using various STCs ◼ Locations: Xiamen, Jinan, Greensboro

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Cabin Solutions

Interior Products

◼ Cabin Solutions facilities in High Point, NC and Wallburg, NC offer a complete range of aircraft seats and interior products ◼ Product lines include:

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Seat

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Major monuments including lavatories, galleys and crew rest modules

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Minor monuments including closets, partitions and dividers, central ceiling stowage

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General cabin equipment such as windscreens

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Floor to floor components such as curtain kits and sidewall panels ◼ Products are tested on-site in our FAA certified laboratory for flammability, static, cycle and dynamic testing, including TSO certification using our full-size test sled

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◼ Vector™ Light is the newest offering from HAECO, representing the total optimisation of the Vector line of seating for single-aisle economy class. Vector Light has been re-engineered to provide additional weight and cost savings while enhancing passenger living space at a narrow pitch, improving cabin economics. Vector Light will be certified to TSO in Q3 2020 ◼ Vector™ Economy is certified to TSO C127b and carries industry-leading warranty. It minimises the operator’s acquisition, installation and maintenance costs through pre-certification, modular design, parts commonality, and streamlined manufacturing. Available for Boeing 737, 777, 787 and Airbus A320, A330, A350

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Cabin Solutions

Interior Products

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◼ Vector™ Premium combines comfort, reliability and maintainability in a customisable and industry- leading lightweight design. Part count minimisation, carbon fiber back and seat pan make the seat one

• f the lightest products in its class. Available for

Boeing 737, 777, 787 and Airbus A320, A330, A350, A380 ◼ Eclipse™ employs angled, offset seating technology and can be configured to maximise passenger places, privacy, and amenities without compromising seat width, pitch or egress. It can be installed at a traditional premium economy pitch range, providing up to a 14% increase in seats within the same cabin space. Available for Boeing 737 and 787

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Cabin Solutions

Interior Products

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Cabin Solutions

Cabin Integration

◼ Provision of turnkey cabin integration solutions for commercial aircraft covering design engineering, certification and vendor management. The Group is also an authorised aircraft seat and cabin interior products OEM ◼ Accomplished HKCAD, FAA, EASA and JCAB STCs for cabin interior modifications in both the private jet and commercial airline segments ◼ HAECO Americas holds FAA Organisation Designation Authorisation (ODA) providing additional benefits to customers through the design and development process

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Cabin Solutions

Private Jet Solutions

◼ The only Airbus-approved and Boeing-licensed cabin completion centre and the only Airbus Corporate Jets (ACJ) Service Centre Network member in Asia Pacific. Offers one-stop-solution encompassing industrial design, design engineering and certification, cabin completion supported by specialised and OEM- endorsed cabinetry, veneer, upholstery and other cabin cosmetics shops, after-sales support, and airframe maintenance ◼ Performed green Airbus ACJ319 cabin completions, Boeing BBJ retrofits, connectivity upgrades and commercial to VIP cabin conversions ◼ Approvals:

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HKCAD - Part 21J Design Organisation Approval (DOA) and Part 21G Production Organisation Approval (POA)

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EASA - Part 21J DOA (minor changes and repairs)

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CAAC - Approved Designated Modification Design Organisation Representative (DMDOR)

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STCs approved by HKCAD can be validated by EASA, and FAA certification is supported by HAECO Americas as an FAA-certified ODA

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Engine Services

Engine Overhaul – HAESL

◼ The Group offers world-class repair, overhaul, and testing services for Rolls-Royce Trent 700, 800 and XWB engines through Hong Kong Aero Engine Services Limited (HAESL) in Hong Kong ◼ Approvals: HKCAD, CAAC, FAA, EASA and ISO9001:2015 ◼ HAESL’s specialised component repair capabilities serve engine overhaul shops across the global Rolls-Royce network, and its in-house repair capabilities for core engine components covers 90% of all repair schemes issued in the OEM engine manual. The facility features nine of 21 Rolls-Royce Component Repair Centres of Excellence ◼ Approvals for component services: HKCAD, CAAC, FAA and EASA (the processes are accredited by ISO/IEC 17025:2017 and Nadcap)

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Engine Services

Engine Overhaul – TEXL

◼ Taikoo Engine Services (Xiamen) Co. Ltd. (TEXL) at Xiamen in the Chinese mainland, is an Authorized GE90™ Service Provider, GE90 Center of Excellence and the sole holder of a GE90 Branded Service Agreement (GBSA) in Asia ◼ TEXL possesses capabilities of performing Quick Turn (QT) and full Performance Restoration (PR) Shop Visits for GE90 engines. Its state-of-art engine test cell is rated to 150,000 pounds of engine thrust ◼ TEXL has over 70% in-house component repair capabilities for its engine overhaul inputs. It also offers third-party component repair services with dedicated resources and competitive turnaround time. To date, TEXL has completed more than 9,000 repairs for third- party customers ◼ Approvals: CAAC, FAA, EASA and seven other authorities

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Engine Services

Global Engine Support

◼ Provides off-wing engine support from its facilities located in Hong Kong, the Netherlands and United States as well as 24/7 worldwide on-wing support ◼ Capabilities on CFM, P&W, IAE, GE, and Rolls-Royce engine types ◼ Services include:

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Full video borescopes using the latest Olympus and GE equipment with detailed reports

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Lease return services

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AD and SB embodiment and campaigns

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EBU and QEC transfers

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Hospital shop quick turn repairs

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Dedicated NDT team deployable worldwide for routine and ad-hoc inspection requirements

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Climatically-controlled engine storage ◼ Approvals: HKCAD, FAA and EASA

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◼ HAECO Component Overhaul operates purpose-built and AS9110 accredited component workshops in Hong Kong and the Chinese mainland that offer repair and overhaul of LRUs ◼ Capabilities to service mechanical (including hydraulic and pneumatics) and avionics components for major Boeing and Airbus commercial aircraft types. Airbus A350 component repair capabilities are in place and will be enhanced ◼ OEM-appointed and authorised repair station and distributor to provide in-warranty and out-of-warranty repair support for aircraft operators in the region ◼ Approvals: HKCAD, CAAC, FAA, EASA and other local aviation authorities

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Component Services

Component Repair and Overhaul – LRUs

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Component Services

Component Repair and Overhaul – Composites

◼ HAECO Composite Services offers maintenance services at Jinjiang in the Chinese mainland and Greensboro, NC, USA. Both repair facilities specialise in aerostructure repair and

• verhaul services, covering nacelles (thrust reversers, inlet

cowls, fan cowls, common nozzles), radomes, flight control surfaces (slats, flaps, spoilers, etc.) and engine fan case, with rotable exchange support ◼ Authorised Repair Station of:

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Airbus Avionics

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The Boeing Company

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Bombardier Aerostructures and Engineering Services

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GE Aviation

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Safran Nacelles ◼ Approved Repair Station of CAAC, FAA, EASA, Japan JCAB, Thailand CAAT, Indonesia DGCA, Malaysia CAAM, Singapore CAAS, Vietnam CAAV and the Philippines CAAP

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◼ HAECO Landing Gear Services provides a full range of repair and overhaul services for landing gear, including a rotable pool for exchange and lease support ◼ Capabilities include Boeing 737, 747, 757, 767, 777, 787 and Embraer E190 / E195 ◼ Comprehensive in-house capabilities, including shot- peening, Non-Destructive Testing (NDT) and machining ◼ Boeing-approved landing gear MRO ◼ Approved Repair Station of CAAC, FAA, EASA, Japan JCAB, Thailand CAAT and Indonesia DGCA

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Component Services

Component Repair and Overhaul – Landing Gears

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Component Services

Component Repair and Overhaul – Joint Ventures with OEMs

◼ Joint Ventures with Original Equipment Manufacturers (OEMs)

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Wheels & Brakes repair & overhaul services by Goodrich Asia-Pacific in Hong Kong

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Approvals: HKCAD, FAA, EASA, HKCAD/CAAC/ AACM Joint Maintenance Management (JMM), Thailand CAAT, Vietnam CAAV, the Philippines CAAP and Japan JCAB

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Aircraft Component repair & overhaul services (fuel pump, FMU, hydraulic actuator) by Goodrich TAECO at Xiamen in the Chinese mainland

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Approvals: CAAC, FAA, EASA, Singapore CAAS, Thailand CAAT, Vietnam CAAV and Malaysia CAAM

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Aircraft Component repair & overhaul services by Honeywell TAECO at Xiamen in the Chinese mainland - APU, HMU, heat exchangers, air turbines

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Component Services

Inventory Technical Management

◼ Provision of Inventory Technical Management solutions through HAECO ITM Ltd. – a Joint Venture between HAECO (70%) and Cathay Pacific (30%) ◼ Services range from flexible inventory pooling, Power- By-the-Hour support, repair management, loans and exchanges, and world-wide AOG support ◼ Component management solution with guaranteed service levels and high quality component maintenance at competitive rates ◼ Extensive component engineering and airline operating experiences with strong in-house repair capabilities ◼ Strategic relationships with OEMs and world-class supply chain partners

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Others

Fleet Technical Management

◼ Tailor-made fleet technical management services ◼ Services include:

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Cabin Configuration Documentation

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Electrical Load Analysis (ELA) Monitoring

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Maintenance Support

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Continued Airworthiness Control

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Technical Document Review

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Repair and Modification Design

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Leasing Return Support

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Aircraft Acceptance Support

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◼ A build-to-print manufacturer of airframe parts and spares for OEMs and aircraft manufacturers, offering machined parts, sheet metal parts and wire bundles ◼ Holds a range of manufacturing process design and fabrication capabilities including NC programming, fixture design, multi-axis CNC machining with high precision, complex sheet metal forming and structural assembly ◼ With Nadcap accreditation for NDT, heat treatment, shot peening and chemical processing, and capability to provide Boeing-approved special processes ◼ Facilities are certified under HKAR-21 POA, Boeing BQMS and SAI (ISO 9001 and AS9100D)

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Others

Parts Manufacturing

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Others

Technical Training

◼ Provides training and examination services to airlines, MROs and other aviation companies in the Chinese mainland and other parts of the world. The Group provided 4,181 training courses and trained 99,704 students in 2019 ◼ Approved Training Organisation under Part-147 by HKCAD, CAAC and EASA ◼ A training partner of Airbus and a member of the “Training by Airbus” network to provide Airbus A320, A330 and A350 type training on behalf of Airbus ◼ The first Maintenance, Repair and Overhaul (MRO) Organisation and Aircraft Maintenance Training Organisation (AMTO) in the Chinese mainland equipped with the Boeing 787 training suite

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Appendix: Group Capabilities

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Appendix: Group Capabilities

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Appendix: Group Capabilities

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For more information, please visit www.haeco.com

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