Xie Xianwen, the airport's chief of materials equipment division, said when the expansion was completed the airport would be able to handle 260,000 flights each year, 45 times the existing capacity.

At the same time, the passenger reach will hit 40 million, six times that of the current level.

Mr Xie said the idea was to turn Hongqiao into a modern, multi-functional and integrated international airport, which will be complemented by a new airport in nearby Pudong.

This year, Hongqiao will be able to handle 65,000 flights and 8.5 million passengers.

And to cope with rising passenger and cargo capacity, key carriers such as China Eastern Airlines and Shanghai Airlines are in the midst of acquiring more planes.

China Eastern Airlines, slated for a New York listing, would add 19 planes to its fleet by the end of the decade in a US$2 billion expansion programme. Plans are afoot to reportedly raise US$1 billion to finance its expansion.

Shanghai Airlines, which plies domestic routes primarily, will expand its fleet by 19 - or two passenger plans a year - by 2000.

Mu Husheng, the airline's manager of aviation supplies department, said the carrier was aiming to build up its international routes within the next few years.

And to provide logistic support to Hongqiao and the airlines, the China Aviation Supplies Corp (CASC) has given priority to beefing up the Shanghai branch to help it cope with the rising demand for warehouse and office space.

Towards that end, it has bought 10,000 sq m of land in Pudong to build modern integrated office buildings and warehouses.