Many Chinese airline companies have shifted their attention to Shanghai and this has made the competition in the city's aviation market even fiercer.
Air China, one of the largest airlines in China, has announced the establishment of a branch in Shanghai. This is said to be the first time that a major Chinese airline company has ever set up a branch in the city.
It is understood that Air China's Shanghai branch will manage the company's businesses in six cities: Hangzhou, Nanjing, Wenzhou, Hefei, Ningbo and Wuxi. It will integrate the company's marketing and service resource in East China area and optimize the company's flight network and improve its transfer capacity by virtue of its Star Alliance membership.
At present, Air China runs 24 routes departing from Shanghai and operates 72 flights a day from Hongqiao Airport and Pudong Airport.
In addition to Air China, China Southern is also working strenuously to explore Shanghai's aviation market. So far, China Southern has launched more than 30 routes departing or transferring from Shanghai with over 60 flights a day. It is also preparing to set up a subsidiary in Shanghai.
With the approaching of the 2010 Shanghai Expo and the establishment of charter flights between Chinese mainland and Taiwan on normal days, the demand for air services in the East China region is expected to grow in the next few years. Earlier China Eastern expressed its intention of melding with Shanghai Airlines to create a super carrier in the city.