20/10/2006

Hawker Pacific gains strategic foothold in China via Shanghai joint venture.

Australasia’s leading aircraft sales and product support company, Hawker Pacific has secured a strategic foothold in China by entering into a joint venture to develop a business aviation facility at Shanghai''s Hongquiao Airport.

The joint venture with the Shanghai Airport Authority will see the development of Fixed Base Operation (FBO), Maintenance Repair and Overhaul (MRO) and Aircraft Management services, specifically aimed at the corporate aircraft market. It will be capable of handling up to 6,000 aircraft movements a year.

The Shanghai Airport Authority is the operator of the city''s two airports which are amongst the busiest facilities in China.

Hawker Pacific Chief Executive, Alan Smith said the joint venture represented the substantial fulfilment of a strategy set by the company more than four years’ ago. "We have long recognised the potential offered by China as one of the world’s fastest-growing economies and we have been focused on developing appropriate strategic relationships to achieve our goals."

"We realised that Shanghai was the ideal location for the provision of business aircraft services due to it''s position as the commercial centre in China and its remarkable growth over the past decade," Mr Smith said. "Anyone who has visited the city in recent history will realise the outstanding development of infrastructure to support present and future growth."

He noted the development of FBO, MRO and Aircraft Services facilities in Shanghai would position the joint venture to not only provide services to both existing domestic and international corporate aircraft, but also support the anticipated growth in future corporate/private aircraft ownership in China.

"Hawker Pacific was selected by The Shanghai Airport Authority’s as its joint venture partner after careful evaluation of a number of candidates over an extensive period. It reflects Hawker Pacific''s regional strength, capabilities and strong focus on the Chinese market, developed over many years of activity in that market," he said.

Under the joint venture agreement Hawker Pacific will provide management of the facility which will initially focus on FBO and MRO activities. Aircraft Management Services will gradually be introduced in line with market development & demand.

Mr Smith said the Shanghai joint venture represented a neat fit with Hawker Pacific’s broader strategic growth plan for FBO/Aircraft Management Services in Asia, South-East Asia and the Pacific. It also was of great importance to a number of aircraft manufacturers who are keen to ensure product support capabilities are available in China as the market grows.

"Any examination of economic development and investment inflows tells you that China and India, together with South-East Asia, are regarded as being the power-houses for the world economy over the net few decades," he said. "That is something that Hawker Pacific has clearly in mind in terms of future growth, through the expansion of our business services where it makes economic sense to do so."

"That is the case here and Hawker Pacific is delighted to be associated with Shanghai Airport Authority in this exciting project," Mr Smith said.

The new facility is planned to open in April, 2008.

About Hawker Pacific Pty Ltd
Hawker Pacific Pty Ltd is the market-leader in integrated civil and military aerospace sales and product support in Australia, Asia and the Pacific. The company maintains facilities in Sydney, Melbourne, Brisbane, Perth, Townsville, Cairns and Auckland as well as in South-East Asia and the Middle East

For further information:
Mr Alan Smith Chief Executive Officer, Hawker Pacific Pty Ltd Phone: 61 2 9708 8584