Expanding skies: Chief Executive Donald Tsang inspects a model of the Hong Kong Aircraft Engineering Company's new hangar.

Chief Executive Donald Tsang has hailed the Hong Kong Aircraft Engineering Company's plan for a second maintenance hangar at the airport as a vote of confidence in Hong Kong's aviation industry.

Officiating at the ground-breaking ceremony today, Mr Tsang said Hong Kong International Airport handled a record 37 million passengers and 3.1 million tonnes of cargo last year, and expects new records this year.

"HAECO's decision to expand its facilities will further enhance the capabilities of our airport. By investing $320 million in this second hangar, 450 skilled jobs will be needed," he said.

HAECO Chairman David Turnbull said the project is testament to the company's faith in the continued robust growth of air traffic into Hong Kong.

Scheduled for completion by the end of 2006, the 13,000 square-metre facility will accommodate two wide-bodied aircraft plus a smaller one simultaneously and have the capability to undertake all maintenance and modification work handled at the airport.