The two carriers flying between Shanghai and Hong Kong are aggressively adding flights on the route, betting on increasing air travel demand.

Shanghai-based China Eastern Airlines Co Ltd, one of the country's three major carriers, is gradually increasing its current 11 daily flights bound for the region from Shanghai to 15, expecting more passenger volume after the Chinese government allowed individuals to visit Hong Kong rather than limiting them to group tours.

"An increasing number of locals have bought Shanghai-Hong Kong tickets since September, boosting our business on the route," said Zhang Ming of China Eastern.

The average passenger load factor, or proportion of seats sold on planes, rose to about 90 percent this month, with some weekend flights fully occupied, Zhang added.

Hong Kong-based Dragon Airlines Co Ltd, the other carrier serving the route, also plans to increase their frequencies to 74 a week starting from October 27. Currently, they're operating 60 weekly services linking the two cities.

"Despite our flights being less than theirs, we'll offer the same number of seats on the route as China Eastern since we use larger planes," Aaron Chan, regional general manager of Dragonair's east China business, said.

Although passenger numbers will continue to grow in the long term, industry insiders don't expect a great boom for the weeklong National Day holiday.

"The majority of passengers traveling between Shanghai and Hong Kong are business travelers. They will take a rest during the holiday. Though there'll be more tourists, the total volume won't be far bigger than usual," said Shan Chuanbo, deputy marketing manager of China Eastern.

For China Eastern, the lucrative sector accounts for around 8 percent of its total passenger turnover.

(eastday.com September 25, 2003)