Hong Kong and Shanghai airports sign Letter of Intent for closer co-operation

(HONG KONG, 27 October 2003) - Airport Authority Hong Kong (AA) today signed a Letter of Intent with Shanghai Airport Authority to strengthen exchanges and promote closer co-operation between the two airports and cities. AA Chief Executive Officer Dr David J Pang signed the Letter of Intent Setting Out a Framework for Closer Co-operation (LOI) with Chairman of Shanghai Airport Authority, Mr Wu Nianzu. Chief Executive of the Hong Kong Special Administrative Region Government, Mr Tung Chee-hwa, and the Mayor of Shanghai, Mr Han Zheng, witnessed the ceremony. The LOI, reached after friendly discussions, calls for the two airport authorities to share management experience in many areas including airport safety and security management system, airport flow management, airport environment management, airport facility planning and management, as well as airport franchise business management. Both airports will explore co-operation in airport business management, including retail, food and beverage, and advertising. The two authorities will, in conjunction with major Mainland hubs, build a platform for the transfer of management experience to set in motion modernization of airport management throughout the country. Co-operation in air cargo business is also covered in the LOI. AA Chairman Dr Victor Fung said the LOI was a significant milestone in extending the scope of economic and trade co-operation which would further promote the long-term development of the two cities. "This co-operation will align Shanghai's aviation industry with the international market, enlarging the market place and enhancing its status as an aviation hub. It will also provide HKIA with an opportunity to participate in the modernization of airport management in China." He said, "Shanghai Hongqiao Airport has gathered a wealth of operational experience, Pudong Airport is well equipped with state-of-the-art facilities and Hong Kong International Airport is global in its business outlook. On the basis of closer co-operation, we can both make great strides in future developments. This Letter of Intent, which combines the competitive edges of Hong Kong and Shanghai airports, has laid a firm foundation for future co-operation and further widened the scope of co-operation between the two parties." Shanghai Vice Mayor Yang Xiong said, "We believe the closer co-operation between the airports of Shanghai and Hong Kong will further extend the market of Hong Kong and add impetus to its development. Besides, it will boost the economic development of Shanghai. By building on our close co-operation, we hope there will be more mutual exchange and co-operation between us which will finally lead to the further development and prosperity of the two cities." Both authorities will set up teams to work out details for co-operation projects. Dr Fung thanked Mr Han, the Shanghai Municipal Government, Shanghai Airport Authority and all relevant parties for their full support in making the co-operation project a success. Closer co-operation of the two airports would expedite growth in the Chinese economy, bringing long-term benefits to the country, he added. Also at the ceremony to witness the signing were the Financial Secretary Mr Henry Tang Ying-yen, the Secretary for Financial Services and the Treasury Mr Frederick Ma Si-hang, the Permanent Secretary for Economic Development and Labour (Economic Development) Ms Sandra Lee Suk-yee, the Vice Mayor of Shanghai Yang Xiong, the Secretary General of the Shanghai Municipal Government Mr Du Jiahao, the Deputy Secretary General of the Shanghai Municipal Government Ms Yang Dinghua and the Chairman of the Shanghai Development and Reform Commission Mr Jiang Yingshi.