Oct. 14 – The operators of the main international airports in Shanghai and Hong Kong have signed a joint venture to manage the Shanghai Hongqiao International Airport and make it highly competitive reports China Daily.

Currently, the Hongqiao airport is mostly for domestic flights handling 22.9 million passengers and 415,700 tons of cargo last year. The Shanghai Airport will pay RMB51 million for a 51 percent majority stake in the Shanghai Hong Kong Airport Management Co. while Airport Authority Hong Kong will pay RMB49 million for the remaining stake with the agreement valid from 2010 until 2030.

According to an Airbus SAS report, China’s aviation market is forecast to grow by 7.9 percent annually in the next 20 years and is set to become the world’s second fastest growing market after India.

Hongqiao airport will open a new terminal next year that will expand the airport’s total area to 82,000 square meters.