The Shanghai Hongqiao Aviation Service Innovation and Experiment Base was founded in May in Changning District. This new base is intended to advance Hongqiao’s development as an international shipping center while also leading innovation and upgrades within the aviation service industry.

The base is located in the Hongqiao Linkong Economic Park, next to the Hongqiao Airport, and covers a total area of 6.74 square kilometers. Six zones within the base cover fields such as air route resource optimization and aviation arbitration.

At the municipal government press conference held on July 22, Zhang Liancheng, deputy director of Changning District, said the new base will promote the integration of logistics industry functions in Hongqiao’s business district.

“The six function zones, in three aviation service industries, will have a positive influence over the entire aviation industry and will help the future development of the city airport,” Zhang said.

Five companies and organizations — including the Civil Aviation Administration of China’s East China Regional Administration and East China Air Traffic Management Bureau, China Eastern Airlines, Shanghai Airport Authority and China National Aviation Fuel — have already signed strategic collaboration agreements with the new aviation service base.

Meanwhile, Shanghai Customs will also support Changning District authorities as they explore aviation in a variety of service fields, including bonding and customs clearance.

For its part, the China Aviation Industry Fund will establish the Hongqiao Aviation Innovation Investment Fund in the base. This fund will focus on assisting emerging aviation technology and service companies and at the same time invest in high quality projects outside the area.

There are currently 107 aviation companies and organizations operating within Changning District, including China Eastern Airlines and Spring Airlines. Looking ahead, many believe the local aviation sector will grow further with the development of the corporate aircraft rental and aircraft maintenance markets.

Over 17 percent of the 537 million yuan (US$86.4 million) in tax revenue brought in by Changning District last year derived from aviation and logistics. As the district’s air transportation capabilities improve, the new aviation service base is expected to attract more companies and improve the industrial layout of the city at large.