Zhuhai airport concession

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In October 2006, Airport Authority of Hong Kong got an agreement with the State-owned Assets Supervision and Administration Commission of Zhuhai City to jointly operate Zhuhai Airport. The Airport Authority Hong Kong established a joint venture, Zhuhai-Hong Kong Airport Management Company Ltd., to manage and operate the Zhuhai Airport for 20 years. The joint venture with a registered capital of 360 million yuan (45 million U.S. dollars), would pay a franchise fee for the exclusive right to operate. According to the agreement, AA held the joint venture's 55 percent stake, which it acquired for RMB 198 million (US4 24.75million) through its wholly owned subsidiary HKIA (China) Ltd. The joint venture's remaining shares were held by the State-owned Assets Supervision and Administration Commission of Zhuhai city government through an injection of RMB 162 million (US4 20.25million) by its wholly owned company Zhuhai Headway Transportation Investment Co. Ltd.