Shanghai Airport Authority, Shanghai
International Airport, Air China and Cathay Pacific have
established a joint venture company in Shanghai for the provision
of airport ground handling services at Shanghai Pudong
International Airport and Shanghai Hongqiao International Airport.
The joint venture company – Shanghai
International Airport Services Co., Limited – will be 41% owned by
Shanghai International Airport Co., Ltd and 10% by Shanghai
Airport Authority which is the majority shareholder of Shanghai
International Airport Co., Ltd. Air China and Cathay Pacific’s
wholly owned subsidiary Hong Kong Airport Services Limited (HAS)
will hold 24% and 25% of the joint venture company respectively.
Air China and HAS will contribute RMB86.4 million and
RMB90 million in cash to the registered capital of the joint
venture company for their respective 24% and 25% shareholding.
Cathay Pacific and HAS will provide strategic management support
to the joint venture company.
Shanghai Airport Authority
and Shanghai International Airport Co., Ltd. will inject cash and
their existing ground service equipment into the joint venture
company as their contributions in kind in respect of their
respective 10% and 41% shareholding in the joint venture company.
Shanghai Airport Authority and Shanghai International
Airport Co., Ltd will switch their existing airport
ground handling services contracts, including those in respect of
Cathay Pacific and its sister airline Dragonair, to the joint
venture company. Air China will also transfer its relevant ground
handling services business to the joint venture company at an appropriate time.
The existing ground handling services
staff of Shanghai Airport Authority and Shanghai International
Airport Co., Ltd. will be transferred to the new joint venture
company to ensure the continuity of operations at both Pudong and
Subject to approval by the relevant
Chinese government authorities, the joint venture company is
expected to commence operations in the third quarter of 2012.
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