Shanghai Airport Authority, Shanghai International Airport, Air China and Cathay Pacific Airways are teaming up to launch a ground handling joint venture company for the city’s Pudong and Hongqiao International Airports.
The joint venture company – Shanghai International Airport Services Co., Limited – will be 41% owned by Shanghai International Airport and 10% by Shanghai Airport Authority. Air China and Cathay Pacific’s wholly owned subsidiary Hong Kong Airport Services will hold 24% and 25% of the joint venture company respectively.
Air China and HAS will contribute RMB86.4 million (US$13.7 million) and RMB90 million in cash to the registered capital of the joint venture company for their respective 24% and 25% shareholding. Shanghai Airport Authority and Shanghai International Airport will inject cash and their existing ground service equipment into the joint venture company.
Cathay, Dragonair and Air China will all be served by the new entity. Subject to approval by the relevant Chinese government authorities, the joint venture company is expected to commence operations in the third quarter of 2012.
