The operator of Frankfurt Airport, Fraport AG, announced on March 31 that it is selling its minority stake in China’s Xi’an Airport.
This move comes after Fraport AG has failed to expand its business in the most populous country.
Fraport AG signed an agreement to sell the entire 24.5% stake in the airport’s operating company to Chang’an Huitong Co., Ltd.
The selling price is 1.11 billion yuan (175 million dollars).
According to Stefan Schulte, CEO of Fraport AG, Xi’an has given them both great satisfaction and disappointment.
On the one hand, minority interest in Xi’an is a chance to showcase Fraport’s expertise in airport management. In fact, passenger numbers quadrupled to over 40 million per year over the 14 years since Fraport acquired its ownership.
He said, “We always regarded our minority stake in Xi’an as a starting point for expanding our business in China.”
He added, “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.”
Closing the transaction takes a few more steps to complete.
According to Fraport AG, the airport’s operator Xi’an Xianyang International Airport Co., Ltd. expects the sale to close in the second quarter of 2022.