Fraport AG is selling its stake in Xi’an Airport (XIY) in central China after 14 years, the group announced last week.
Under an agreement signed on March 31, Fraport is letting go of its entire 24.5 percent stake in Xi’an Xianyang International Airport (the airport’s operating company) to Chang’an Huitong for RMB1.11 billion or around US$174.4 million.
Fraport chief Dr. Stefan Schulte expressed satisfaction on the good work done with the airport but also some disappointment at the move to cease its operations in China.
“We always regarded our minority stake in Xi’an as a starting point for expanding our business in China – the most populous country in the world. However, this never materialized in Xi’an or at any other Chinese airport. Consequently, we have now decided to cease our activities in the Chinese market,” Shultze noted.
Over the past 14 years, Fraport helped develop Xi’an from a medium-sized regional airport with about 10 million passengers annually to one of China’s largest aviation gateways, serving more than 40 million passengers per year.
The airport group expects the closing of transactions to be concluded during the second quarter.