CHINA / Investment

Baiyun Airport Seeks Foreign Shareholders

(investguangzhou.gov.cn)
Updated: 2006-05-18 13:57

The parent company of Guangzhou��s Baiyun airport is looking for overseas
strategic shareholders to help it raise management skills to
international standards and finance its 17.3 billion yuan expansion plan,
according to the Guangdong Airport Management Corp (GAMC).

The strongly independent operator is under pressure to turn a profit at
Baiyun after investing 18 billion yuan in its first phase. Foreign
partners are expected to come from a growing list of international
airport operators and management firms eager to expand their presence in
China.

Foreign investors would be allowed to take up to 49 per cent of the
holding company, GAMC vice president Chen Xiaoning said.

��The greatest challenge we are facing now is how to equip our management
team to meet international standards and deliver effective
administration,�� Mr Chen said on the sidelines of Airport Council
International��s Pacific regional assembly.

Frankfurt-based Fraport and Los Angeles Airport are GAMC��s strategic
partners at Baiyun, which plans to operate 24 hours a day by 2008 when
the Asia-Pacific hub for US express giant Federal Express comes on stream.

Likely candidates could also include Aeroports de Paris, Hochtief, the
Civil Aviation Authority of Singapore and Australian investment bank
Macquarie.

Mr Chen rejected suggestions that Hong Kong��s Airport Authority could
become a partner.

The British Airports Authority last month signaled its interest in
returning to the China market, but Baiyuan might not fit its requirements.

��We were looking at Guangzhou about 10 years ago, but at that time they
just wanted your money and your expertise; thy weren��t interested in
having you mange a facility,�� BAA International managing director Andrew
Jurenko said at an airport privatization conference last month.

��For us, control is a fundamental issue. If we can��t have control, we
are not interested.��

Mr Chen, who said Baiyun lost money last year, expected passenger volumes
at south China��s newest airport to reach 38 million by 2010.

The holding company manages four airports in Guangdong and is committed
to build a new three billion yuan facility at Shantou.

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