CAI forms the first Sino-foreign joint venture

Changi Airports International (CAI) and China’s Shenzhen Airport Group (SAC) have entered into a strategic partnership to develop a portfolio of regional airports across China. This is the first joint venture between the Shenzhen Airport Group and a foreign company. The alliance provides an additional platform for CAI to penetrate into the dynamic Chinese market. The joint venture adds to the airport deals which CAI is currently undertaking on its own in the country.



CAI will hold a 49% stake in the Joint Venture (JVCo) and Shenzhen the remaining 51%. Through the JVCo, both parties will jointly

• Identify and invest in medium size Chinese airports with strong growth fundamentals



• Participate in the management of the airport operations in these airports with the view of improving service quality, efficiency and returns.

The partnership will build on the existing strengths of both parties, in particular world class airport management and commercial skills from the operation of both Singapore Changi Airport and Shenzhen International Airport. In addition, CAI brings its extensive global perspective to the joint venture while SAC provides the wealth of understanding of the Chinese aviation industry.



Both parties have already established a credible track record of developing and managing airport investments in China. CAI has a 29% stake in Nanjing Lukou International Airport, the first private equity airport investment in China by a foreign investor. CAI’s strong portfolio of airport consultancy projects in China includes Chengdu and Qingdao airports. The Shenzhen Airport Group has invested 21% in Chengdu Airport. With total passenger volume of 18 mppa, Shenzhen Airport is the 4th largest airport in China in terms of passenger volume. Latest year on year passenger volume growth was 13% and that for cargo was 20%.



Speaking at the signing ceremony in Shenzhen, Mr. Chow Kok Fong, Chief Executive Officer of Changi Airports International, says the joint venture is an important milestone for both companies. “It leverages on some quite incomparable characteristics of both partners – the depth of resources and breadth of expertise and know how which both parties could jointly marshall – to participate in the development of Chinese airports. Total volume of passenger traffic for the country has already reached 320 million in 2006 and is expected to grow between 15 – 20 % per annum over the next decade. I like to think the joint venture demonstrates yet again our commitment to the future of China, and, in particular, its aviation sector.”