Shanghai Hongqiao Airport
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- Schedule Analysis
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- Print Summary
- IATA Code
- Other airports serving Shanghai
- Shanghai Pudong Airport
- 3400m x 58m
- Airlines currently operating to this airport with scheduled services
- Air China
All Nippon Airways
China Eastern Airlines
China Southern Airlines
China United Airlines
Hong Kong Airlines
- Airlines currently operating to this airport via codeshare
- Austrian Airlines
Delta Air Lines
KLM Royal Dutch Airlines
Shanghai Hongqiao International Airport is the smaller and more centrally-located airport serving Shanghai and ranks among the busiest airports in China. Hosting domestic and regional passenger and cargo services, the airport is a hub for China Eastern Airlines and Shanghai Airlines. The airport was the principal airport serving Shanghai until the construction of an international airport at Pudong. Services at Hongqiao are almost exclusively domestic and short-haul international, with longer-haul services having been transferred to Pudong.
Location of Shanghai Hongqiao Airport, China
Shanghai Int'l Airport share price
Ground Handlers servicing Shanghai Hongqiao Airport
335 total articles
30 total articles
Juneyao Airlines and Spring Airlines will make advances with their forthcoming entry into the highly lucrative cross-Strait market between mainland China and Taiwan, where yields approach an astronomical USD30 cents/km for the one to two hour flights. While they are due to initially serve Kaohsiung, a Taiwanese port city, they should gain entry on the key Shanghai-Taipei route later in 2013. The two privately-owned airlines are the most prominent of the carriers that launched mid-last decade during a period of relative liberalisation. Being new carriers, they have lean bases unencumbered with legacy baggage. Spring also has the distinction of being China's largest LCC by some degree, and will be the first LCC on the cross-Strait market.
The two will be expected to offer lower fares than competitors, but not by much, at least on the Shanghai-Taipei route. Demand far exceeds current supply, tightly controlled by the respective governments since scheduled cross-Strait services recommenced in 2008 as relations between the two governments warmed. There is little incentive to offer cut-throat fares as might be expected in other markets. The routes should do well for Juneyao and Spring from a marketing and profitability perspective, but their limited frequency against a backdrop of high demand means competitors should have little to worry about for the medium term. In the long term, however, these short point-to-point routes seem perfect for LCCs, if airlines are willing to make a fundamental change to their business.
China's privately-owned Juneyao Airlines is seeking a broader path. Thoughts of partnerships have progressed from ambition to reality, with Juneyao interlining with Singapore Airlines and more recently forming reciprocal codeshares with both Air China and China Eastern. Despite a not insignificant fleet of 30-odd A320 family aircraft, Juneyao remains relatively unknown. That will change as the carrier seeks deeper international partnerships. The Shanghai-based carrier has already caught the eye of Star Alliance, which has a void in its network since the 2010 exit of Shanghai Airlines following that carrier's acquisition by SkyTeam's China Eastern.
But for now, independence of a global alliance seems to be the objective for Juneyao. There are a number of independent airlines to have leveraged a strong domestic network to become friends of many, and not just from one alliance.
The codeshares with Air China and China Eastern are different, with little route overlap. China Eastern is top dog in Shanghai, but Juneyao has more Shanghai slots than China Eastern could ever hope to gain by growing organically. Likewise for Air China, which is trying to build up its Shanghai presence to compete with China Eastern. These are duelling ambitions and Juneyao is in the prize. No doubt it has already received a quick lesson on managing partners.
Air China's hub at Beijing Capital is effectively at capacity for movements between 07:00 and midnight. Consequently the carrier is increasingly using its existing slots to launch international services that support its positioning as China's international flag airline; this also allows Air China to grow revenue, which in 2012 surpassed RMB100 billion (USD16 billion) for the first time. But these services, aside from Taiwan, offer only lower yields and faint glimmers of profitability – unlike the domestic heartland operations.
With Air China's domestic RPKs growing only 0.5% in 2012, the carrier is seeking to assure the market it has domestic growth opportunities left by expanding its hubs at Chengdu and Shanghai, although the latter is also constrained by slots. The Air China Group also has a portfolio of domestic carriers, including Shenzhen Airlines (the country's sixth largest), Shandong Airlines and Tibet Airlines. They account for about a third of the group's domestic revenue and most traffic growth.
A proposed regional alliance amongst SkyTeam's Greater China members – Taiwan's China Airlines, China Eastern, China Southern and Xiamen Airlines – may appear to be a niche strategic move in the small but highly profitable and expanding Taiwan-mainland China market.
Yet the alliance is also indicative of the growing trend for North Asian airlines to combine their strengths against imposing competitors, namely Air China and Cathay Pacific.
The alliance would account for about half of the capacity between China and Taiwan, a valuable market which is continuously expanding under tight control and route delegation. Its share on certain key business routes, like Taipei-Shanghai, would be even higher. Further airline strength and capacity will pressure Hong Kong-based carriers, which once had a healthy business of carrying passengers between China and Taiwan via their hub.
There are some 30 airlines in China and almost all of them are affiliated with one of the country's main four airline groups: Air China, China Eastern, China Southern and Hainan Airlines.
An exception is Juneyao Airlines, independently and privately owned. It has found a successful niche operating as a quality premium leisure, or boutique, carrier based at Shanghai, the epicentre of new wealth in the country. Juneyao also carries business traffic, but is perhaps willing to understate its importance in that market so as not to draw attention – and possibly interference from an over-zealous regulator.
The carrier is now targeting a few strategic developments. It has commenced scheduled international operations with a service to Thailand's Phuket and is looking to export its model beyond Shanghai to other bases in mainland China.
But of greatest relevance to the industry is its aspiration to develop a series of partnerships – from marketing to codeshare – to increase traffic flows. It boasts a strong product and network from Shanghai, which most international carriers serve.
China Eastern-Hong Kong Airlines partnership bolsters them in a market dominated by Air China-Cathay
The melting pot of increasingly tangled and conflicting alliances is perhaps bigger nowhere else than in Greater China. Driving the partnerships is an entanglement of its own, the cross-holding between the state-favoured, Star-aligned Air China and powerhouse but oneworld member Cathay Pacific. The message that formidable force sent – a region divided between Air China-Cathay and The Rest – is producing smart partnerships amongst the comparatively smaller participants.
The latest is a codeshare between China Eastern and Hong Kong Airlines covering flights between Hong Kong and mainland China. So far it is a limited partnership on reciprocal routes that gives a larger offering of flight times. That appeases the corporate market which China Eastern reckons it has under-captured due to its lack of widebody flights compared to competitors. The partnership also allows China Eastern to regain momentum in the Hong Kong market, where it has decreased capacity following the opening of cross-strait flights to Taiwan in 2008.
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