Airport Authority signs aircraft maintenance franchise agreement with Pan Asia Pacific Aviation Services Limited

(HONG KONG, 27 September 1996) -- The Airport Authority (AA) today signed an agreement with Pan Asia Pacific Aviation Services Limited (PAPAS) for one of three aircraft maintenance franchises to be awarded at Hong Kong's new airport at Chek Lap Kok.

PAPAS is required to provide line maintenance services at the new airport for a term of 10 years from airport opening. This is the first of the agreements to be signed.

Line maintenance services include mainly routine servicing of aircraft performed during normal transit periods, routine turnaround periods and regularly scheduled layover periods.

The terms of the agreement signed today were agreed by the British and Chinese sides of the Airport Committee of the Joint Liaison Group in May this year. The agreement stated that line maintenance franchises may be awarded to China Aircraft Services Ltd and Pan Asia Pacific Aviation Services Ltd, and a combined line and base maintenance franchise to Hong Kong Aircraft Engineering Company Limited (HAECO). Following the signing with PAPAS, the other two aircraft maintenance franchise agreements will be signed shortly.

Ref. PR-239