Shanghai Yigian Trading Company has acquired an 82.5 percent share in the struggling airport from German federal state Rhineland-Palatinate for an undisclosed sum, according to a statement from the state government.
Shanghai Yigian Trading Company (SYT) has acquired a majority stake in the struggling Frankfurt Hahn Airport, according to a statement from German federal state Rhineland-Palatinate.
The Shanghai, China-based construction company purchased an 82.5 percent share in the airport from Rhineland-Palatinate, and is reportedly in talks with the German state of Hessen, owner of the remaining shares, about a buyout. Full financial terms of the deal were not disclosed, but Rhineland-Palatinate Interior Minister Roger Lewentz said the purchase price would be in the “low double-digit million euro range.”
Pending approval from the German Parliament, as well as the European Commission, the deal is expected to close later this summer.
Originally a U.S. military airbase before being converted to commercial use in 1993, Frankfurt Hahn Airport is located about 120 kilometers (75 miles) away from Frankfurt am Main airport in Hessen. The airport is primarily used by discount airlines, most notable Ireland’s Ryanair, but has struggled to remain profitable as passenger and cargo services have moved to other area airports like Frankfurt am Main.
Lewentz said the acquisition could provide the extra motivation needed for further development at the airport.
“The new government has a strong interest in a successful Frankfurt-Hahn Airport and this is why we will remain ready to provide, within the Aviation Guidelines of the European Commission, operating and investment aid,” he said in a statement translated from German.
“The support shows what a high priority is given to the location of the state government in the future,” added Lewentz, noting that SYT will be required to put up at least 50 percent of investment costs going forward. State investments are also conditional on certain terms, such as the continuation of flight operations at Frankfurt Hahn.
Chinese construction firm to purchase Frankfurt Hahn Airport
