Hangzhou and Hong Kong airports form strategic alliance to promote aviation services

(Hong Kong, 17 January 2005) - Hangzhou Xiaoshan International Airport Company Limited (HXIA) and Airport Authority Hong Kong (AAHK) today signed a letter of intent to form a strategic alliance between the two airports, outlining the consensus reached for an intention for an equity investment to form a new joint venture company. Located at the Yangtze River Delta, HXIA enjoys a prime geographic position with huge economic growth potentials. As a major tourist city airport, HXIA is a domestic hub. Hong Kong International Airport (HKIA), a major gateway airport and an international aviation hub, has extensive experience in airport construction and management. It topped the world in terms of air cargo throughput for eight consecutive years. Through outstanding service standards, it has been named the World's Best Airport for four consecutive years. Both airports have been integral components of economic growth in their respective regions. This Zhejiang-Hong Kong joint venture is an important step undertaken by the Zhejiang Provincial Party and Government authorities in implementing CEPA, and also marks a major breakthrough in the opening up and reforms of civilian airports. The cooperation will help both airports to complement each other by the utilisation of resources, and through the building of an air bridge, connect the two cities in areas including economy, tourism and cultural exchange. This will enhance the flows of people, goods, money and information, facilitating long-term prosperity for both places. The letter of intent was signed by Mr Chen Hai Mei, Chairman of HXIA and Dr David J Pang, Chief Executive Officer of AA. The Chief Executive of the Hong Kong Special Administrative Region, Mr Tung Chee-hwa and the Secretary General of the Zhejiang Provincial Party, Mr Xi Jin Ping, witnessed the signing. Mr Chen Hai Mei, HXIA's chairman, said economic activities and development in Zhejiang and Hong Kong have provided the civil aviation industry, in particular the airport business, with vitality and opportunities and the favourable conditions for the joint venture. Mr Chen said: "With an equity investment into HXIA, we will emerge from a state-owned enterprise to become a China-foreign joint venture enterprise. By brining in a new partner, perfecting corporate governance, strengthening our business, and accelerating airport construction, improvement and development, we will meet and satisfy the demand on airport services that come as a result of economic growth and social development in the Zhejiang Province." He added that HXIA had been in talks with several international airports on joint venture plans, and AA emerged as the partner with its exceptional airport management experience. He said it is hoped that the cooperation will bring further development to the aviation industry of both cities, as well as strengthening Zhejiang and Hong Kong's economic and trade relations and exchanges in all areas, hence contributing to sustainable economic growth and coordination of the two places. Dr Victor Fung, Chairman of AA, said: "Hangzhou and Hong Kong both play a significant role in the economic development of the Yangtze River Delta and the Pearl River Delta. The alliance will bring the two regions closer to one another, enhancing trade cooperation and exchanges and facilitate economic development for the two regions and the whole nation. Airport business for both Hong Kong and Mainland airports will all benefit with enhanced flow of people and goods." Dr David J Pang, CEO of AA, said: "This joint venture is a major milestone for AA's initiative to foster strategic alliances with Mainland airports. As a major aviation hub for the country, we are very pleased to share with HXIA airport management experience in areas such as operation, services, safety, security and retail planning and management. We are glad to contribute to the development of the aviation industry and the economy of the two places." Under the letter of intent, AA will work with HXIA in the planning of a logistics park. Both parties will jointly promote an air bridge between Hangzhou and Hong Kong, to attract more airlines to operate flights and help develop the economy. Binding agreements will be officially signed with the approval of the respective Governing Boards and Governments. Fact sheets of both airports attached Signing Ceremony: Honn Kong International Airport: Hangzhou Xiaoshan International Airport: - Download Photo --ends-- Media Enquiry Hotline: (852) 2188 7152 Airport Authority Website: http://www.hongkongairport.com