Hangxin Aviation Engineering Group and Air France Industries Enter Share Transfer Agreement

PARIS – Air France Industries and Hangxin Aviation Engineering Group made a new strategic move in China. Within the context of the ongoing economic crisis, AFI KLM E&M reviewed the key elements of its presence and perspectives in the Chinese MRO market. As a result of the review, Hangxin Aviation Engineering Group and Air France Industries initialed a share transfer agreement in December 2008 and on Feb. 19 signed the final agreement in Hong Kong.

This move guarantees an appropriate return of investment for both shareholders. Senior management and cadre employees of Hangxin Aviation Engineering Group (Hangxin A.E. Group) have purchased the Hangxin shares owned by Air France.

"Air France Industries has made a positive impact to Hangxin A.E. Group in the fields of management, technical engineering and internationalization since it originally acquired its shareholding in 2002," says Bu Fansheng, Chairman of the board and President of Hangxin A. E. Group. "As a result, Hangxin A.E Group is now privileged to be able to make its own operation and development decisions. This transaction represents an unprecedented strategic opportunity and ushers in a new era of independent development."

"Hangxin A. E. Group significantly contributed to the Air France Industries knowledge and presence in the Chinese market," says Alain Bassil, President of Air France Industries. "This move gives higher flexibility to AFI KLM E&M and opens a new phase of potential alliances and long term agreements in line with the new Chinese MRO market challenges and our PRC airlines customers' expectations."

Hangxin A.E Group and Air France Industries are sincerely grateful to the airworthiness authorities, airlines, and industry insiders for their strong support during this share transfer process and are fully confident that both groups will see vigorous development going forward.