After flirting with China's airports for several years, Frankfurt airport operator Fraport has finally settled down in Xi'an, Shaanxi province, in northwest China.

Fraport Asia has acquired a 24.5 percent stake in the new Xi'an Xianyang International Airport Co, one of the top 15 cargo airports in China and a fast-growing passenger destination, for US$71.79 million. The other partners in the venture are China West Airport Group with a 50.9 percent stake, China National Aviation with 24.5 percent, and Airport Logistic Xi'an with 0.1 percent.

The $293 million joint venture began operations early last month. It owns the infrastructure and associated land at Xi'an airport and is responsible for all airside facilities.

Fraport's flirtation with China airports started six years ago, when it signed a memorandum of understanding (MOU) with the Shanghai Airport Group and few years later resulted in the set-up of the Shanghai Frankfurt Airport Consulting Service Co, which trained airport personnel at various airports in China, including Baiyun airport in Guangzhou.

Two years later, in 2005, Fraport signed a MOU to buy a 25 percent stake in Ningbo airport. It entered into a similar agreement in 2008 with Qingdao airport on co-operation in management and logistics services. In May this year, Fraport also signed an MOU on strategic co-operation at Yunnan airport with the Yunnan State Assets Commission.

Robert Payne, an official with Fraport, said the Xi'an deal was clinched more than a year ago and was just awaiting approval from Beijing authorities. The agreement was reached in April 2007 after two years of talks between Frankfurt airport group chief Wilhelm Bender and China West Airport Group chairman He Xikui.

Fraport made its move on Xian when the airport operator was undergoing a transformation from a state enterprise to a shareholding company with the objective of encouraging more international flights. Fraport officials said at the signing that they would help turn the airport into a major international destination.

Airlines from Xi'an airport can currently reach 68 domestic cities and more than 11 international cities in Japan, Korea, Thailand, Hong Kong and Macau. In addition, there are charter flights operating from the airport to Singapore and Azerbaijan, a republic which is partially in Eastern Europe and partially in Western Asia.

Fraport believes Xi'an airport has the potential of developing into a regional hub in the next few years. The airport was the hub for China Northwest Airlines until the company was merged into China Eastern Airlines in 2002.

Fraport expects millions of Chinese and foreign tourists to visit Xi'an because of its famous terra-cotta warriors (below) - thousands of life-sized clay figures that represent one of the most significant archaeological finds of the 20th century.

Yuan Chunguang, an official in charge of the shareholding transformation, said they had many candidates from whom to choose a potential partner but selected Fraport because of its expertise in management, technology, operational development and global network.

He insisted that "Xi'an airport has great potential for development" and "we're mainly introducing managers and business partners".

In recent years, Xi'an airport has developed rapidly, and is the businest airport in northwest China with robust cargo traffic.

Xi'an airport is currently undergoing expansion that will help boost passenger capacity to 26 million a year and freight throughput to 360,000 tonnes.

The major shareholder in the joint venture, China West Airport Group, is based at the Xi'an economic zone and operates 11 airports and 18 holding companies and subsidiaries in Shaanxi, Gansu and Qinghai provinces and the autonomus region of Ningxia Hui.

It operates Hedong Airport in Yinchuan, capital of Ningxia Hui, Caojiabu Airport in Xining, capital of Qinghai province, Tianshui Airport in Gansu and smaller airports in Yulin, Yan'an, Hanzhong and Ankang cities of Shaanxi province as well as the one in Golmu, Qinghai province.