[photopress:shenzen.jpg,full,alignright]Changi Airports International has formed a strategic joint venture with the Shenzen Airport Group to develop regional airports in China.
The alliance will give CAI, a subsidiary of the Civil Aviation Authority of Singapore which operates Changi Airport, further access to the aviation market in China.
CAI started in China by providing technical consultancy services three years ago and followed that up with a 29% private equity stake in Nanjing Lukou International Airport in January.
CAI will hold a 49% stake in the joint venture, while Shenzen Airport Group will control the remaining 51%.
This is the first joint venture between Shenzen Airport Group, which owns 54.6% of Shenzen Airport Co Ltd, and a foreign company. Shenzhen’s Baoan airport is the fourth largest in China in terms of passenger volume.
CAI believes that the opportunities in China are tremendous as airport development there remains a major possible investment area. China has 146 airports – far below the 5,600 in the US, which has only one fifth of China’s population.