The battle between Air China, China Southern and the merger between China Eastern Airlines and Shanghai Airlines, including smaller Chinese carriers like Spring Airlines and foreign carriers, for greater market share in the lucrative Shanghai aviation market is hotting up, China Daily reported, citing aviation sources.

The report pointed out that as early as February, Air China, the national carrier, had quietly promoted its Shanghai office to a full-fledged branch, while China Eastern, despite being busy with the merger, also had upgraded its Shanghai office to a branch status to enable it to operate its own aircraft fleet and maintain its own pilot team.

Si Xianmin, president of the Guangzhou-based China Southern Airlines, recently said that China Southern will start focusing more on the Shanghai market, clearing indicating that the battle lines have been drawn.

Zou Jianjun, a professor with Civil Aviation Management Institute of China, warned that the newly-merged China Eastern, which holds more than 50 percent of Shanghai's market, should be wary of its home base because it may, after the merger, shift part of its capacity to other cities, weakening its hold in the capital city, which was positioning itself as a global financial centre and an aviation hub.

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