China Airlines (CAL) Annouces Investment in Hong Kong GH Company

TAIPEI, Nov 30 Asia Pulse - Taipei-based China Airlines, Taiwan's largest carrier, announced Tuesday it had invested in Hong Kong-based China Aircraft Services Limited (CASL) to better services at Hong Kong's airport and earn handsome profits from China.

Starting from Jan. 1, 2006, CASL will become CAL's agent and take charge of regular repairs and maintenance operations and ground services of CAL carriers at Chek Lap Kok Airport, a CAL spokesman said, adding that CAL will be able to enjoy more economical services at the airport and gain profits from the promising Chinese market due to its investment in CASL.

Reports have said that CAL has funneled HK$ 60 million (US$ 7.7 million) to acquire 20 per cent of CASL shares, but the Taipei-based aviation company was reluctant to confirm this figure.

CASL is the agent for 24 airlines, including Air China, China Eastern Air, China Southern Airlines, Hong Kong Dragon Airlines, Japan Airlines, British Airways, Lufthansa German Airlines and Air France, and is also responsible for their repairs, maintenance and ground services at the Hong Kong airport.

CASL chalked up HK$ 250 million in revenues in 2004. Its services cover 21 models of airplanes and 13 types of engines.

(CNA) 30-11 1141

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