Hong Kong Airlines buys shares in Asian air joint venture

It joins airlines from Malaysian, Indonesian and Brunei airlines as shareholders.

Hong Kong Airlines has entered into an agreement with SIA Engineering Company Limited, together with its joint venture partners Malaysia Airlines Berhad (MAB), PT Garuda Indonesia TBK (GA) and Royal Brunei Airlines Sdn Bhd (RBA), to subscribe for new shares in an Asian air joint venture Pan Asia Pacific Aviation Services Limited (PAPAS).

According to a media release, PAPAS is a Hong Kong-based joint venture between SIAEC (47.06%), MAB (23.53%), GA (17.65%) and RBA (11.76%), which provides line maintenance, ramp handling and other ancillary services at Hong Kong International Airport.

The consideration payable in cash by HKA for the first tranche shares is $21.7 million and the consideration payable in cash by HKA for the Second Tranche shares will be in the range of $23.5 million to $33.5 million.