SHANGHAI: Shanghai Airlines (SA) plans to purchase about 50 aircraft by 2010 in an attempt to expand at home and abroad after joining Star Alliance in December, company president Fan Hongxi said yesterday.

This year, the airline will grow its fleet from 53 to 60, expanding its annual capacity to 10 million passengers and 300,000 tons of cargo and mail.

SA has ordered nine Boeing 787 aircraft, which will be delivered starting next year.

"We aim to develop new international air routes by using Boeing 787 aircraft," said Fan.

He expects SA to have a fleet of 100 aircraft by 2010 that can handle 17.7 million passengers and 1.5 million tons of cargo and mail annually.

SA will focus on growing its market share in Australia, Europe, the United States and Canada in the next five years.

"Surveys of Hamburg, Queensland and other foreign cities are being made in a bid to work out a new international air route plan next year," he said.

At the Star Alliance 10th anniversary in Copenhagen earlier this week, Star Alliance CEO Jaan Albrecht said giving membership to Air China and SA this December will help speed up the alliance's expansion in Beijing and Shanghai.

Today, three major airline alliances - Star Alliance, SkyTeam and oneworld - dominate the international aviation industry and are in fierce competition for the Chinese market.

"Every new member brings fresh ideas and enthusiasm to the table, thus keeping us young and fit for the future," said Albrecht.

He said building a network would exceed the capabilities and resources of any single carrier.

Li Jiaxing, president of China National Aviation Holding Company, said Air China will work with SA to expand in domestic and international markets once both become alliance members. The top priority will be to increase flights between Beijing and Shanghai, he said.

SA will import two MD-11 freighters this year to reinforce its cargo business and it plans to have 12 freighters by 2010.

The airline occupied an 11 percent share in the Shanghai cargo market last year, a number Fan hopes to grow.

Source: China Daily