British Airways remains confident about the Chinese market and is looking to increase its flights to Shanghai, the company's chairman said yesterday.

In the city to address a British Chamber of Commerce breakfast meeting yesterday, BA Chairman Martin Broughton met Shanghai Mayor Han Zheng on Wednesday to discuss the expansion of flights from five to six a week, with a view to eventually moving to seven a week.

Broughton, who is also the Confederation of British Industry president, took the opportunity to discuss with Han a number of issues affecting business in Shanghai.

Airline industry observers have noted it has been a difficult year for the local market with high oil prices, a slowing global economy and visa restrictions surrounding the Olympics all negatively impacting business.

A number of American airlines have recently reduced their services to Shanghai. But Broughton said BA's long term strategy was to steadily build its capacity in China.

"With all these things you build them up slowly," he said.

"We came into Shanghai in 2006 and we were profitable last year, that's pretty fast in a new market like this," he said.

Broughton said in the next decade it was likely that BA would expand its services to other Chinese cities. He also predicted that Chinese consumers could expect the trend of competitively priced flights to continue.

"I think the consumer today has got a dramatically better product value than they had 10 years ago and as one goes forward that should continue," he said.

It has been a tumultuous year for the airline industry which is facing a global economic slowdown in the wake of the current financial crisis in the United States and Europe.

It has also been a tumultuous year for BA, with it first facing the EU-US open skies agreement, which opened up its lucrative North Atlantic route to competition.

In April it was criticized over the calamitous opening of its T5 terminal in London.

BA also faces the prospect of a slump in business travel on the back of the global economic downturn.

Broughton said that the industry was headed for a shake-up and a painful period of consolidation. But unlike the 9/11 downturn, when BA was laden with debt, he believed that the airline was well positioned to ride out the rough times.

(Shanghai Daily September 26, 2008)