Shanghai Int'l Airport may lose 10% income on landing fee cut

Shanghai International Airport Co<600009>, the operator of China's second-busiest airfield, is likely to suffer a loss of about 10% in its total income after the new airport charge structure took effect on March 1, said the company in a statement with the Shanghai Stock Exchange.

China's aviation watchdog issued a new scheme in February to narrow the payment gap between foreign carriers and Chinese carriers within five years, which cut landing and take-off fees for foreign airlines by 40% and domestic airlines by 20%. Before March, foreign carriers paid about two or three times the fees of domestic counterparts.

Shanghai International Airport posted 2007 total income up 6% year-on-year to RMB 3.14 billion (US$441.88 million).

Its shares slumped 10% to close at RMB 26.70 (US$3.75) in Shanghai yesterday.