AHK Air Hong Kong Signs 14-Year MCPHSM Agreement

January 25, 2005

EVENDALE, Ohio - AHK Air Hong Kong has announced its selection of GE Engine services to provide maintenance and overhaul services for the GE CF6-80C2 engines powering the airline's fleet Airbus A300-600 freighters.

The current AHK Air Hong Kong, an all-cargo carrier, was formed in 2002 as a business partnership between Cathay Pacific (60%) and DHL Express (40%). The airline has ordered eight A300-600GFs (General Freighters) and currently has four aircraft in operation. The four remaining airplanes will be delivered in 2005 and 2006. AHK is using the aircraft to service routes to Japan, Korea, Malaysia, Singapore, Taiwan, and Thailand from its hub in Hong Kong.

GE's highly successful Maintenance Cost Per Hour (MCPHSM) programs maintain engines on a flat rate per engine flight hour basis, enabling airlines to accurately forecast operating costs, reduce cost of ownership and improve asset utilization.

"AHK Air Hong Kong has accomplished a great deal in a relatively short amount of time," said Dan Heintzelman, vice president and general manager of GE Engine Services. "We’re delighted that AHK has made GE Engines Services such a major part of its operations and we're looking forward to a very long, very successful relationship with them."

The CF6 engine family has distinguished itself for reliability while accumulating more flight-hours than any other high-bypass engine family, powering more than 10 models of wide-body aircraft. GE's CF6-80C2 engine alone has accumulated more than 100 million flight-hours since entering service in 1985.

GE Engine Services, a part of the GE Transportation - Aircraft Engines division of the General Electric Company (NYSE: GE), is a global provider of maintenance and support services for operators of GE and non-GE engines. In addition to overhaul and repair, GE Engine Services provides solutions to customers maintenance needs, including component repair, on-wing support, and spare parts. The company also maintains engine accessories and key aircraft accessories, provides remote diagnostics monitoring of aircraft in flight, and offers a full range of engine leasing plans. In 2003, the company posted revenues of $8.5 billion.

GE Transportation - Aircraft Engines is one of the world's leading manufacturers of jet engines for civil and military aircraft, including engines produced by CFM International, a 50/50 joint company of Snecma Moteurs and GE. The company also manufactures gas turbines, derived from its highly successful jet engine programs, for marine and industrial applications.