Dnata strikes deal with China airport

Dubai: Dnata, the ground handling arm of the Dubai-based Emirates Group, has signed a 15-year joint venture agreement with China West Airport Group (CWAG) to provide airport ground handling services in Xi'an Xianyang International Airport (XXIA), Emirates said yesterday.

The move marks Dnata's entry into the growing Chinese aviation market and makes the Dubai-based ground handler one of the largest players in Asia and the Middle East.

The agreement was signed yesterday at the Pan Pacific Hotel in Singapore between Gary Chapman, president of Dnata and Associated Companies, and He Xikui, president of CWAG.

The company will also participate in operations at 10 other airports managed by CWAG.

Under the agreement, Dnata will hold a 45 per cent stake in Xi'an Dnata Aviation Services Company Limited, with the remaining 55 per cent owned by CWAG.

"The collaboration between Dnata and CWAG will strengthen the existing handling operations with the expectation of business growth and operational synergies.

"Both parties aim to bring their collective capabilities to deliver high quality and efficient ground handling operations at Xi'an Xianyang International Airport," Chapman said in a statement.

Strategic partnership

"Dnata believes that this strategic partnership will be able to help Xi'an Xianyang International Airport realise its potential of becoming one of the leading aviation hubs in China, and we look forward to working closely with our partners in CWAG.

"As one of the regional airport hubs in China, the popularity of Xi'an with its rich historical and cultural heritage makes Xi'an an important tourist destination in addition to also being a hi-tech industrial development zone in China," he added.

Aircraft and passenger movements at Xi'an airport are expected to grow by 12 to 15 per cent in the coming years from 117,000 flights and 10.9 million passengers respectively.

Having established extensive operations in the Middle East, Dnata is making inroads into the ground handling business in the Asia Pacific with operations in Singapore, Philippines, Pakistan and Australia.

Changi International Airport Services Pte Ltd, Dnata's wholly-owned subsidiary in Singapore, will provide management support services by sending a senior official as general manager of the joint venture in Xi'an.