Airport Authority signs aircraft maintenance franchise agreement with China Aircraft Services Limited

(HONG KONG, 10 October 1996) -- The Airport Authority (AA) today signed an agreement with China Aircraft Services Limited (CASL) to provide aircraft maintenance services at Hong Kong's new airport at Chek Lap Kok.

Under the agreement, CASL is required to provide line maintenance services at the new airport for a term of 10 years. These services are those performed during normal transit periods, routine turnaround periods or regularly scheduled layover periods.

This is the second of three maintenance agreements to be signed, following AA's signing with Pan Asia Pacific Aviation Services Ltd on 27 September.

Shareholders of CASL are China National Aviation Corporation, British Airways PLC, Hutchison Whampoa (China) Ltd, and United Airlines.

The British and Chinese sides of the Joint Liaison Group agreed in May this year that the AA may award two line maintenance franchises 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). The third maintenance franchise with HAECO will be signed shortly.

Ref. PR-241