On Sep. 22, construction started at the Beijing Capital International Airport on Asia's biggest hangar, a facility that will be able to hold two Airbus SAS A380 superjumbos.

Aircraft Maintenance & Engineering Corp, a joint venture between Deutsche Lufthansa AG and Air China Ltd, said it will build the 700-million-yuan (US$87.5 million) hangar to exploit the country's fast-growing demand for air travel.

The project is part of Ameco's 15-year plan to invest 3.5 billion yuan to improve its facilities and products.

"The expansion will meet the rising demand for repair and maintenance services for Air China and other domestic and international airlines that are rapidly expanding their fleets," the company said in a statement.

The new hangar, with a floor area of 70,437 square meters, is scheduled to be completed in March 2008, in time to cater to the booming demand from Beijing's 2008 Olympic Games.

The facility will be able to hold six wide-body planes the size of Airbus A380s or Boeing 747-400s and another four single-aisle aircraft such as the Boeing 737-800, the company said.

The facility is expected to maintain and repair 11,500 aircraft a year.

China's soaring air travel market has caused Ameco, Hong Kong Aircraft Engineering and other such firms to boost investment. China's air fleet is expected to triple to 3,900 planes by 2025, according to Boeing Co estimates.

Ameco's shareholders have also approved the construction of another terminal of the same size, the statement said, without elaboration.

China Southern Airlines Co, the nation's biggest carrier, is the only Chinese airline to have ordered the 555-seat A380.