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"China Experiments on Franchised Operations of Airports"


 
Thursday, March 17, 2005

China Experiments on Franchised Operations of Airports
SinoCast China Business Daily News


BEIJING, (SinoCast) -- An official of Civil Aviation Administration of China
(CAAC) recently revealed CAAC had split off the non-aviation business of
four airports at the end of 2004.

In the meantime, CAAC made experiments on franchised operation mode at the
four airports respectively in four cities, including Beijing, Shanghai,
Shenzhen and Xiamen.

The franchised operations of the airport currently include ground service
and commercial business. Only qualified corporations can bid for the rights
to franchised operation. The franchise fees charged by airports include two
parts: one is the rental fees and the other stems from air carriers' use of
passenger and cargo resources.

The pilot airports mentioned above should handle their project to CAAC for
approval. During the waiting time, they cannot directly dip into the
business involving ground service and commercial business.

CAAC will promote the operating mode around the country at an appropriate
time, based on the implementation.


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