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SIAEC includes Hong Kong Airlines in Asian airline joint venture
HKA bought a 15% stake, decreasing SIAEC's interest from 47.06% to 40%.
Hong Kong Airlines (HKA) subscribed for new shares worth $3.7m in Pan Asia Pacific Aviation Services Limited (PAPAS), a joint venture between SIA Engineering Company Limited (SIAEC) and three other Asian airline firms.
According to a press release, PAPAS is a Hong Kong-based joint venture between SIAEC which holds 47.06%, Malaysia Airlines Berhad (MAB) which holds 23.53%, PT Garuda Indonesia (Persero) TBK (GA) which holds 17.65%, and Royal Brunei Airlines Sdn Bhd (RBA) which holds 11.76%.
The company provides a full suite of line maintenance, ramp handling and other ancillary services at Hong Kong International Airport.
HKA is a full-service carrier based in Hong Kong and currently operates a fleet of 35 aircraft.
SIAEC said, "HKA is a major customer of PAPAS and its entry as a shareholder will further strengthen PAPAS’ growth."
HKA will become a 15% shareholder of PAPAS through a subscription of new shares, whilst SIAEC's stake will be cut to 40%.
HKA has the right to further increase its stake in PAPAS to 30% for $4m.
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