The operators of the main international airports in Shanghai and Hong Kong are to form a joint venture to manage Shanghai Hongqiao International Airport, reported China Daily. Despite its full name, Hongqiao mostly handles domestic flights.

Shanghai Airport will pay Rmb51m for a 51 per cent stake in the venture, with Hong Kong Airport Authority paying Rmb49m for the remainder.

Han Zheng, mayor of Shanghai, said that cooperation between these two experienced operators should lead to a more sophisticated service at Hongqiao, enabling it become a more competitive airport.

Hongqiao is building a new terminal that is scheduled to be completed next year. The airport aims to carry 30m passengers and 1m tons of cargo annually by 2015. This compares with 22.9m passengers and 415,700 tons of cargo in 2008.