Shanghai, HK set up JV to manage Hongqiao Airport

Oct. 13, 2009 (China Knowledge) - Airport authorities in Shanghai and Hong Kong signed a cooperation agreement on Monday to establish a joint venture to manage Hongqiao International Airport, sources reported.

Shanghai Airport Authority has agreed to invest RMB 51 million for a 51% stake in the JV, while Airport Authority Hong Kong will hold the remaining 49% for RMB 49 million.

The Shanghai Hong Kong Airport Management Co, which will operate for 20 years from next year, is expected to help operate the east and west terminals of Hongqiao Airport, the east traffic control centre of Hongqiao's integrated transport centre and manage passenger-related issues.

The new western terminal is set to be completed next year and will have links to the new transport hub in the Hongqiao area. Upon the completion of the expansion project, Shanghai will have four air terminals and five runways for a combined capacity of 90 million passenger trips and 5.2 million tons of cargo.

In 2008, Hongqiao airport handled 22.9 million passengers, making it the fourth busiest airport in the country.

Putong International Airport is the other airport in the city.