"Hong Kong Airport Authority wins race to buy strategic stake in mainland hub"

Saturday, January 15, 2005

Airport Authority wins race to buy strategic stake in Zhejiang hub
China - The Hong Kong Standard


Hong Kong's Airport Authority will take a stake of over 30 percent in
Hangzhou's Xiaoshan International Airport, but neither side has divulged the
cost or nature of the agreement.

A spokesman for the airport in the capital of Zhejiang province said Hong
Kong had overcome competition from Copenhagen and Singapore to become its
strategic partner.

``We chose Hong Kong because of its good management and international
network,'' he said.

Neither side would reveal how much the investment will cost, what Xiaoshan
Airport will do with the money, or what form co-operation between them will
take.

On the SAR side, Deputy Secretary for Economic Development Wilson Fung said
the airports are at work on a framework agreement.

``They're discussing a framework agreement, a non-binding one,'' he said.
``They're talking about the framework first, with the details to be
discussed later.

``Signing a framework does not mean there will immediately be a a formal
agreement.

``The small details have to be discussed as well,'' he said.

Xiaoshan Airport handled 6.4 million passengers last year and its business
is growing steadily, provincial vice-governor Zhong Shan said on Friday
while promoting Hong Kong- Zhejiang Week.

He said an agreement on the airport sale would be signed on Monday at the
inaugural ceremony of the trade promotion event.

Local media have reported that Xiaoshan Airport, open since 2000, needs
funds to complete its second phase and logistics facilities to allow it to
compete better with other airports in the Yangtze River Delta.

The Airport Authority said it continues to discuss partnerships with
regional airports.

In the past, it has mentioned Macau, Zhuhai, Guangzhou and Shenzhen as
likely candidates.


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