The operators of the main international airports in Shanghai and Hong Kong have signed a joint venture to manage Shanghai Hongqiao International Airport.
Currently, the Hongqiao airport is mainly for domestic flights handling 22.9 million passengers and 415,700 tons of cargo last year.
Shanghai Hongqiao Airport will pay RMB51 million for a 51% majority stake in the Shanghai Hong Kong Airport Management Company while Airport Authority Hong Kong will pay RMB49 million for the remaining stake with the agreement valid from 2010 until 2030.
China Briefing states that according to an Airbus SAS report, China’s aviation market is forecasted to grow by 7.9% annually in the next 20 years and is set to become the world’s second fastest growing market after India.
As part of that international growth pattern, Hongqiao airport will open a new terminal next year that will expand the airport’s total area to 82,000 square meters.