Shen was chosen for the post last December after he had worked as a pilot for 28 years with a record of 17,000 flying hours.

"If I still were a pilot, I would have flown 20,000 hours," he said.

But he said he would make up for the loss by flying once a month after he sorts out other problems at work.

"Too many things must be taken care of and measures should be taken to advance the airline's management," he said.

China Eastern lost about 500 million yuan ($60 million) in 1998 as China's civil aviation business declined. It began to extricate itself from its dire straits by the end of last year, with profits of about 200 million yuan ($24 million).

"However, it didn't really get rid of the financial difficulty," Shen said. "Efforts are needed to boost profits."

Shen has been under a lot of pressure since he was promoted to president of the airline from the post of general manager of its Anhui Branch.

"The task is heavy, pressure is great and the difficulties are big," he said.

The airline has 53 aircraft and 12,000 employees. "It's not an easy job," Shen said.

But in just six months, Shen and his colleagues have made great progress.

Passenger occupancy rates averaged at 59.8 per cent between January and May, up 8 per cent over the same period last year.

Passenger and cargo turnover grew by 21.95 per cent in the first five months of this year, compared with the same period last year.

"The company is expected to earn more profits this year than last year," Shen said.

Five-year plan

He is now considering a five-year plan for the airline's development in the new century.

"Initial study is under way of the aviation market in order to obtain first-hand information," he said.

The plan will include purchase of aircraft, repartitioning of passenger cabins, adjustment of air routes and training of personnel.

The airline will buy six 150-seat Airbus planes this year to join its fleet. The first will come in August.

These new planes will be used to fly on routes bound for Hong Kong, Japan and the Republic of Korea. New air routes will be opened to meet customers' demands, Shen said.

Facing competition from overseas airlines, China is working out a plan to merge airlines into group companies. It is expected to be completed by the end of this year, a local aviation manager said.

Shen said China Eastern is waiting for the decision of the State Council, but he emphasized that CEA will choose promising airlines with healthy assets favourable to China Eastern's further development.

Shen said CEA is negotiating with Taiwan-based China Airlines about a joint venture to transport cargo between the mainland and the island province.

"But details are still under discussion," he said.

AS president of one of the nation's three major airlines, Shen has a busy daily schedule.

Every day he gets up at 5:30 am and then goes jogging for an hour. He always comes to his office half an hour ahead of time.

"Time is limited and so many things are waiting to be done," he said.

After arriving at the office, he first checks his e-mail and then considers the day's major issues.

"Meeting managers under him and guests is a key part of his morning agenda," said Ding Xiangyang, Shen's secretary.

Shen, 48, is energetic and vigorous and he has a strong sense of responsibility. Over the past six months, he has inspected subsidiary companies in East China's Jiangxi, Jiangsu, Anhui and Shandong provinces and North China's Hebei and Shanxi provinces. "I go to the grass-roots units in a bid to become familiar with workers, engineers and managers there," he said.

Busy as he is, Shen values his home life. He often declines dinner invitations at work, except very important ones, so he can go home at 6:00 or 7:00 pm.

"I feel a family dinner is more relaxed and more comfortable," he said.

Shen likes reading which, he thinks, can make him knowledgeable and give him more information. He finds two hours a day to read even if he is occupied the whole day. At weekends, he spends time playing cards with friends.

Facing challenges

China Eastern will face fiercer challenges if China enters the World Trade Organization, said Shen, the president of the airline.

"More foreign airlines will flock to the Shanghai market to compete with their Chinese counterparts," Shen said.

Airlines must create a system that matches international practice, he said.

"We are not afraid of competition but we must have ways to survive it," he said.

Shen and his colleagues are determined to appreciate the airlines' assets by earning more profits.

"We must be responsible to the State, the biggest shareholder of the airline," he said.

The president said the current rigid personnel system must be broken first because it has stopped the airline from further expansion.

The airline needs a group of able employees and managers if it wants to expand its share in the competitive market at home and abroad.

The decision to hire a general sales manager is an initial part of its whole reform programme.

"Our purpose is to establish a system in which employees can prove themselves," Shen said.

The hiring work began on March 8 with an advertisement in local media and 51 candidates from different companies applied for the post which offers an annual income of 150,000 yuan ($18,120).

Gao Pei, a former deputy manager of the airline's marketing section, couldn't sleep at night for thinking about the opportunity.

Gao, 37, who had acted as a deputy manager for five years was considered a good person for the new post. But he was first required to terminate his working relation with the airline and prove himself in the open job market. "I thought about it for several days before I made a final decision," Gao said.

He thought it was a good chance but felt great pressure. He was afraid of losing face if he failed to win the post.

Furthermore, he would be giving up his "iron rice bowl" if he was hired as general sales manager.

"If I can't accomplish the three-year target set by the company, I will have to leave the post," he said after he won the post at last.

Tough targets

"The annual income of 150,000 yuan ($18,120) is not much though it is top among the airline's managers," said Xiao Liyuan, Party secretary of the China Eastern Airlines Co Ltd.

As one of the company's two top managers, Xiao earns only about 50,000 yuan ($6,000) annually. The annual income of other managers below him ranges from 30,000 yuan ($3,600) to 40,000 yuan ($4,800).

"But we hope more employees will earn a high income later on," he said.

Employees may be put forward for big salary increases to 150,000 yuan ($18,120), 100,000 yuan ($12,050) or 80,000 yuan ($9,660) if they are able to provide what the company requires, Xiao said.

Gao's income is closely related to his merits with half as bonus. If he can't realize what is determined in the contract, he will be dismissed from his post, he said.

But Gao is sure he can bring about profits for the company.

"My commitment is not groundless, it is based on a market survey," Gao said.

Shanghai, he said, is full of potential with increasing numbers of passengers. Half of the European and US passengers coming to China now land in the city, up 20 per cent over a few years ago.

In May, its flights embarking in Shanghai had an average 73 per cent occupancy rate, higher than 65 per cent of other airlines.

"My key task is to reduce sales fees by 30 per cent and increase profits," Gao said.

But the target can't be reached by selling discounted tickets as other airlines have done, he said.

At present, China Eastern occupies a 16 per cent share of the nation's aviation market and a 33 per cent share in Shanghai.

Gao suggested the airline adjust its air routes to challenge the fierce market competition.

"Unprofitable air routes must be reduced or closed," he said.

Flights can't make profits if their occupancy rate doesn't exceed 50 per cent. China Eastern now enjoys a 75 per cent rate in some routes, but in others, the percentage is lower.

"If we increase profitable flights and decrease unprofitable ones, our profits will be much boosted," he said.

Gao's plan is to increase flights bound from Shanghai for Japan and Hong Kong. Four air routes bound for Brussels, Madrid, Munich and Paris will be streamlined into one bound for Paris, which will be daily, the general manager said.

At home, flights bound for cities such as Beijing, Shenzhen and Guangzhou will become shuttle services.

Gao said the airline will buy about 10 150-seat planes within two or three years to meet demand for feeder lines.