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Two Shanghai Airports Destined to Be Consolidated
2009. 30 June
(tradingmarkets.com) Shanghai International Airport Co., Ltd. (SHSE: 600009) Chairman Yu Yanwu stressed at a meeting that Shanghai Hongqiao International Airport and Pudong International Airport were destined to be consolidated.
But it remains unknown when the two airports are to be integrated in the eastern metropolis of Shanghai, for it will be a long way to get everything done.
As early as December 2003, Shanghai International Airport and its parent Shanghai Airport Authority signed an agreement about asset swap, concerning the Hongqiao airport once under the wing of the listed company and the Pudong airport formerly under the aegis of the parent.
Moreover, they promised not to upgrade or expand the Hongqiao airport so as to increase its passenger handling capacity. However, the airport has had to expand its runways in a bid to widen its throughput, survive fierce competition, and make use of great opportunities.
The Expo 2010 Shanghai China is expected to drive up the air passenger throughput by 15 million, and it will also raise the demand for airfreight service, according to the chairman.
The Hongqiao airport will complete the ongoing expansion at the end of 2009 and accept first check, said Shanghai Airport Authority. The project includes the new western terminal, the second runway, the western cargo area and other supporting facilities.
The internal decoration and the installation of electronic and mechanical devices and equipment have already started by now. The new terminal has a total building area of 364,000 square meters, more than four times of that of the existing terminal in the east. The second runway is 3,300 meters long and 60 meters wide, just aside of the first runway. Three parallel sliding ways, 12 fast-exit sliding ways, and two vertical sliding ways will be completed at that time. Thirteen cargo parking bays, 14 maintenance parking bays, and 64 airliner parking bays will also be constructed in the airport.
Notably, Shanghai International Airport reported operating revenue of CNY 3.3507663 billion for 2008, up 7 percent year on year, and operating profit of CNY 1.0733971 billion, down 45 percent, previous reports said.
The net profit attributable to the parent declined 49 percent to CNY 859.7148 million, or CNY .045 per share. The steep decrease is ascribed to the soaring deprecation, operating cost and financial expenditures when the main body of the expanded section of the Pudong airport was completed and became operational.
The dropping return on the investment in the aviation fuel company of Pudong Airport also pulled down its net profit.
The airport dealt with 5,735 flights, served 28.2357 million passengers, and handled 2.6 million tons of cargos and mails in 2008.
(USD 1 = CNY 6.84)