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Shanghai, HK in airport joint venture

By Wang Ying (China Daily)
Updated: 2009-10-13 08:09

Shanghai Mayor Han Zheng (L) shakes hands with Tang Ying-yin, chief secretary for administration of the HK SAR, during the signing ceremony Monday. [China Daily]

The operators of the main international airports in Shanghai and Hong Kong said Monday they agreed to form a joint venture to manage Shanghai Hongqiao International Airport, which mostly handles domestic flights.

Shanghai Airport will pay 51 million yuan ($7 million) for a 51 percent stake in the joint venture, called Shanghai Hong Kong Airport Management Co. Airport Authority Hong Kong agreed to pay 49 million yuan for the remaining 49 percent stake, they said in a joint statement.

The stake structure would remain unchanged for 20 years from 2010.

During the signing ceremony, Han Zheng, mayor of the Shanghai municipal government, said Shanghai hoped the cooperation would allow the introduction of a sophisticated service and management experience at Hongqiao Airport, enabling it to develop into a highly competitive airport.

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Tang Ying-yen, chief secretary for Administration of the Hong Kong special administrative region government, said it valued and supported the airport project of the two cities, and he believed both sides could benefit from the platform.

In October 2003, the Shanghai government proposed strengthening the economic ties between Shanghai and Hong Kong in eight sectors, including airport, logistics, and the World Expo.

The statement also said Hongqiao Airport was building a new terminal that is scheduled to be completed next year. With the new terminal, the airport's total area would increase to 364,000 sq m from 82,000 sq m.

It said the airport aimed to fly 30 million passengers and 1 million tons of cargo a year by 2015. In 2008, the airport handled 22.9 million passengers and 415,700 tons of cargo.