Airport Authority signs second ground support equipment maintenance services franchise agreement

(HONG KONG, 10 March 1997) -- The Airport Authority (AA) today signed an agreement with Ground Support Engineering Ltd (GSEL) to provide ground support equipment maintenance services at Hong Kong's new airport at Chek Lap Kok. Under the 10-year agreement, GSEL will maintain and repair vehicles and equipment used by air carriers and franchisees such as those providing services for air cargo, aircraft maintenance, into-plane fuelling and ramp handling. GSEL will also provide an airside vehicle washing service. Optional services include the repair and maintenance of air cargo containers and passenger terminal baggage trolleys, and battery charging. The contractor will build a 20,000-square-metre facility in the southern commercial area, near the Airmail Centre. and their capital expenditure is estimated at HK$120 million (US$15.4m). GSEL is the wholly owned subsidiary of Associated Engineers Ltd, the existing service provider at Hong Kong International Airport at Kai Tak. The shareholders of Associated Engineers are Jardine, Matheson & Co, Cathay Pacific Airways Ltd and G.T. Chow & Sons Ltd. The terms of the agreement signed today were agreed by the British and Chinese sides of the Airport Committee of the Joint Liaison Group on 4 December 1996. GSEL will be one of two ground support equipment maintenance franchisees at the airport. The other franchise with Dah Chong Hong - Dragonair Airport GSE Service Ltd was signed on 28 February 1997. Ref. PR-262