HK, HXIA launch joint venture company

A joint venture company formed by Airport Authority Hong Kong (AA) and Hangzhou Xiaoshan International Airport Co. Ltd (HXIA) inaugurated in Hangzhou of Chinese mainland, announced AA Monday.

The joint venture company (JV), officially launched on Monday, is tasked to make Hangzhou Xiaoshan International Airport a world- class airport by enhancing operation efficiency, improving service quality and management standards, and carrying out the 6.8 billion yuan (about 872 million U.S. dollars) second phase expansion.

The National Development and Reform Commission has approved HXIA's second phase expansion plan in August. Target for completion by 2011, the plan includes the construction of a 4F- grade runway which is able to accommodate super jumbos like A380, a new international passenger terminal, the second domestic passenger terminal and other related facilities.

The expansion will boost HXIA's annual handling capacity to 25. 6 million passengers, 500,000 tons of cargo and 260,000 aircraft movements by the year 2015.

HXIA is the first civilian airport in the Chinese mainland with direct foreign investment. Since the signing of the JV agreement in April last year, the number of flights serving Hong Kong- Hangzhou has more than doubled, to 140 from around 60 a week.

Shareholders of Hangzhou and Hong Kong airports signed in Hangzhou the agreement for a capital increase subscription of Hangzhou Xiaoshan International Airport Co. Ltd in April 2005 to invite AA to become a strategic investor for the management of HXIA.

Under the agreement, HXIA Co. Ltd will be transformed from a state-owned limited company into a limited liability joint venture company with a registered capital of 5,686 million yuan (about 729 million U.S. dollars). The AA now holds 35 percent equity interest of HXIA Co Ltd by investing 1.99 billion yuan (about 244 million U. S. dollars) and has appointed four members to the Board.

Since opening in 2000, HXIA's passenger and cargo throughputs and aircraft movements have been growing at an annual rate of about 30 percent. In 2005, passenger volume and cargo tonnage rose 28 percent and 29 percent over 2004, to 8.09 million and 166,000 tons, respectively.

HXIA ranks No. 8 among civilian airports in the mainland.

Source: Xinhua