Jia Ruijun, vice-president of Shanghai Airport Authority, announced to launch the renovation project of Shanghai Pudong International Airport (PVG)'s Terminal 1 within this year at the company's 2011 Annual Shareholder Meeting on June 27. The main purpose is to create more space and lay a better foundation for the company's fast-growing non-aviation businesses.

Shanghai Airport maintained its momentum of growth in terms of business performance last year, with the annual revenue of 2011 hitting all-time highs to reach 4.611 billion yuan. More importantly, the revenue has shown three characteristics - the growth of operation revenue exceeding that of the three major production indexes; net profit growing faster than operation revenue; non-aviation businesses performing better than aviation businesses.

Jia said the passenger throughput of Shanghai Airport in 2011 reached a new record of over 41 million, taking a further step toward its goal of achieving 60 million passenger traffic per year by 2015 and 80 million per year later on.

While developing the airport's major businesses, Shanghai Airport will put greater efforts in developing non-aviation businesses, which plays a significant role in promoting air businesses, said Jia.

Jia elaborated on the specific plan to promote non-aviation businesses from the aspects of both "software" and "hardware" by putting emphasis on improving the airport's commercial business services. In terms of "hardware", the Board has agreed to invest 1.4 billion yuan into the renovation project of PVG's Terminal 1. The project is designed by a professional company and is expected to start within this year and end in 2014. By then, around 6,000 square meters of commercial business area that can help expand commercial business network will be added to the airport.

As for the "software", Shanghai Airport has hired a well-known British consulting firm to help it make a development plan for the next 3-5 years, including a new business plan featuring high starting point. Meanwhile, the company intends to concentrate its efforts on service pattern and service quality, seeking to achieve innovation and breakthrough in the field of non-aviation businesses. The introduction of dynamic check-in pattern is a case in point. Its passenger-oriented services not only reduce passengers' waiting time before they pass airport security, but also raise the airport's operation efficiency. Moreover, it plays its part in improving the commercial purchasing power of the airport. Meanwhile, the company will strive to maintain the momentum that its non-aviation businesses outperform the aviation businesses in 2012.