Fraport AG Frankfurt Airport Services Worldwide and the Shanghai Airport Group have signed as a first step of its partnership a letter of intent concerning the founding of a joint-venture company in China. Fraport`s CEO, Dr. Wilhelm Bender, and his Chinese colleague, Wu Nianzhu, have agreed that this joint-venture company will commence work before the end of the year.

Both partners will hold a 50-percent share in the new venture and the contract will run 20 years. Based in Shanghai, the new company will focus on airport consulting and staff training. The capital investment will be limited to approximately EUR 200,000. Further possibilities for cooperation between the Frankfurt and Shanghai airports are being currently examined and cooperation is explicitly desired by both parties.

A first cooperation agreement had been signed at the end of 2002. When experts of both airport companies met in March 2003 it was agreed to examine the set-up of a joint-venture company with specific focus on the marketing of airport know-how in China. Decision-makers in both companies still have to approve the agreement. Furthermore, the partnership agreement needs to be signed and the new company has to be registered under Chinese law.