Shanghai to lead world-class airport cluster development in the Yangtze River Delta region

The Yangtze River Delta region’s airport cluster has grown into a layered framework with the two Shanghai mega airports at the core. It has a combined annual passenger capacity of 117 million, surrounded by seven regional airports, each respectively handling a passenger throughput of over 10 million. Together, the YRD airport cluster has enormous reach and capacity, receiving 20 percent of China’s travellers in 2018, and 35 percent of its air cargo.

Shanghai’s two airports have been developing at a remarkable pace in recent years. With connections to over 300 destinations in 48 countries and regions, they form one of the busiest aviation hubs in China, ranking alongside the world’s top airport in terms of cargo throughput.

Thanks to its easy accessibility by sea, river and air, the YRD is well positioned to achieve rapid and systematic growth, as well as to expand its capabilities. This growth may be accelerated through the further development of the regional civil aviation industry.

Shanghai is poised for rapid development, possessing exceptional advantages that can elevate the YRD to the next level of global connectivity and competitiveness. Shanghai has the opportunity to take its capabilities, management standards and service quality to the next level and claim its place as a world-class aviation hub. The following are our key recommendations:

World-class airport hubs are differentiated by their superior connectivity and a higher degree of operational efficiency. This translates to greater economic benefit. Although Shanghai already connects to over 300 destinations, its advantages offer potential for even greater connectivity.

New destinations, increased frequency and different domestic and international markets should be developed according to the capabilities and positioning of each airport in the regional cluster, while catering to their individual development roadmaps. This would position the cluster to better explore the growth potential of different route markets and address market demand.

We recommend Shanghai to increase investments in its brand as a city and incorporating the unique characteristics of the city to excite and attract international visitors.

Complementary short-term polices could involve encouraging airlines to launch new services through strategic flight incentive schemes, while maintaining market stability and protecting existing airline connections. For example, Frankfurt Airport has worked closely with airlines through mutually beneficial programmes that facilitate and incentivise the introduction of new services.

Accommodating greater connectivity will also hinge on the optimization of take-off and landing schedules following IATA and CAAC guidelines, with the goal of coordinating arrivals and departures to maximise air-to-air connectivity. At the same time, closer collaboration between immigration, customs, airports and airlines will also be necessary to reduce the Minimum Connecting Time (MCT) at the Shanghai airports.

Another way to reduce air-toair MCT and promote convenient and efficient transfers is by enhancing intermodal connectivity, which is an important element of any major international aviation hub. To this end, the YRD’s airports could be linked through high-speed rail to shorten travel times for passengers transiting to their connecting flights. The train line being built in Shanghai to connect Pudong Airport and Hongqiao Airport is a promising step in the right direction.

For three consecutive years, Shanghai’s airports ranked No. 1 in China in terms of air passenger and cargo throughput. However, further upgrades in service quality and handling procedures will be necessary in order to bring Shanghai’s aviation hub in line with international best practice.

Air freight service quality could benefit from close collaboration between the airports, airspace management, customs, border control and quarantine, as well as empirically sound workflows and processes. For example, the integrated system used at the Hong Kong International Airport facilitates convenient data exchange between customs and air cargo operators, enabling them to better monitor and execute efficient