Shanghai Airlines has a need for a 200-seat aircraft, but is wary of including Boeing 757s in its passenger fleet expansion due to the questionmark over the future of the production line, and the promised arrival of the 7E7 in five years time.

According to chief executive Zhou Chi, the airline plans to boost seat capacity by 16% annually in the next few years. "We will need 737-700s and -800s and aircraft with 200 seats, like 757s," he says.

Shanghai Airlines has seven 757-200s in service, and is one of the Chinese airlines targeted by Boeing as it tries to sell 12 757s to the country to keep the line open. Zhou warns that with few airlines ordering new 757s, and the 7E7 due to enter service in 2008, "the question is...before 2008 how many 757s will you introduce?" Although he does not rule out an order, Zhou says any 757 deal "won't be a large one".

The largest 737 model, the -900, is one alternative to the 757 as it has a similar capacity and would have commonality with the existing 737 fleet.

The airline could adopt the 757 for its new freighter arm that should get off the ground next year, although Zhou says it is too early to comment on what its requirements will be. With cargo growing at almost 30% annually over the last four years, the airline recently launched cargo services with a wet-leased Boeing 747, and plans its own in-house operation.

Up to five additional 767s could be introduced if Shanghai Airlines' plans to add more international destinations, which Zhou says could be up to 8h away, come to fruition.

The airline already operates three 50-seat Bombardier CRJ200s, and Zhou says that 80- to 90-seaters are of interest, but not until they are offered at prices that fit the market reality.

Source: Flight International