Beijing Capital reports strong first half


SYDNEY (Centre for Asia Pacific Aviation) - Beijing Capital International Airport Co Ltd reports a 17.3% increase in net profit for the six months ended 30-Jun-05 to CNY400.6 million. Chairman, Wang Zhanbin, stated the airport reported substantial traffic growth, “benefiting from the rapid growth in the civil aviation market in China".

Non-aeronautical revenues fell 29.9%, as the company implemented new franchise arrangements covering retailing, restaurants and advertising businesses, which resulted in a 12.0% reduction in operating costs.

The outlook for the second half of 2005 is positive. Passenger throughput is expected to exceed 40 million for the full year. The company also plans to continue its "transformation from direct operation to management" and will "experiment" the concession/franchise model on more non-aeronautical businesses, including catering and ground handling services.

Meanwhile, the European Investment Bank has approved a EUR500 million loan for the further expansion of airfield and terminal capacity in the lead-up to the 2008 Beijing Olympic Games.

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