Hong Kong and Shanghai airport authorities have signed a co-operation agreement for the establishment of a joint venture company.

Shanghai Hong Kong Airport Management will manage Shanghai Hongqiao Airport's east and west terminals, the east traffic control centre of its transport centre and other business areas relating to passenger flow. It will manage the retail business of the two terminals and ensure the airport will provide high-quality services for World Expo 2010 Shanghai.

The joint venture signed in Shanghai today will strengthen economic and trade development between the two cities.

Hong Kong Airport Authority Chief Executive Officer Stanley Hui said the joint venture will help the authority better understand the operation of Mainland airports and gain experience in managing a national hub facility. He said it will help Hong Kong further integrate with the Mainland.

Hongqiao handled 22.88 million passengers and 415,700 tonnes of cargo last year, making it the country's fourth-largest passenger and fifth-largest cargo airport.