Airport Authority signs largest aircraft catering franchise agreement with Cathay Pacific Catering Services (HK) Ltd

(HONG KONG, 17 May 1996) -- The Airport Authority (AA) today signed an agreement with Cathay Pacific Catering Services (HK) Ltd (CPCS) for the third and largest of the three aircraft catering franchises that will operate at Hong Kong's new airport at Chek Lap Kok when it opens in April 1998. Under the 15-year franchise agreement, CPCS will design, finance, construct and operate on-airport aircraft catering and support facilities. The initial investment is estimated at HK$1.6 billion (US$205 million). Construction of the facility is already under way. In its first year of service, the CPCS facility will have the capacity to produce 70,000 meals per day and ultimately more than 100,000 meals per day, making it the biggest flight kitchen in the world. When CPCS's services are added to those of the two other aircraft catering franchisees - Gate Gourmet Hong Kong Ltd and LSG Lufthansa Service Hong Kong Ltd (LSG) - the three aircraft catering franchisees will have sufficient capacity to meet forecast aircraft catering requirements when the airport opens in 1998. The CPCS facility will comprise a three-storey building with a footprint of 19,084 square metres and a gross floor area of 50,360 square metres. In employment terms, the number of staff to be employed at the three aircraft catering facilities in the first year of operations will total more than 2,700. The terms of the agreement signed today were agreed by the Airport Committee of the Joint Liaison Group in November last year. Ref. PR-219