April 30 (Bloomberg) -- Shanghai Hongqiao Airport, China's fourth-busiest airfield, won government approval for a 13.9 billion yuan ($2 billion) expansion plan aiming to double its annual capacity by 2015.

The city's domestic airport plans to add a second runway and terminal, which will boost capacity to 40 million passengers and 1 million tons of cargo annually by 2015, according to a statement on the General Administration of Civil Aviation's Web site. The plan has been approved by the National Development and Reform Commission, China's top planning agency.

Shanghai, the nation's financial center, aims to surpass Beijing as China's biggest air travel destination as it wins investment from overseas companies including Citigroup Inc. and DHL Express. The country's overall passenger traffic will likely grow 14.5 percent a year until 2010, according to the nation's aviation regulator.

Shanghai's two airports will likely handle 120 million passengers and 7 million tons of cargo in 2015. Beijing Capital International Airport will expand capacity to 76 million passengers a year by 2015, according to the planning agency.

Shanghai Pudong International Airport added a second terminal last month, more than doubling the airport's capacity to 60 million passengers a year. It will be able to handle 80 million travelers annually by 2015 with the addition of two smaller satellite terminals.

Hongqiao airport handled 22.6 million travelers last year, mainly on domestic routes. About 28.95 million passengers passed through Pudong. Beijing Capital International Airport handled 53 million passengers.

To contact the reporter on this story: Irene Shen in Shanghai at ishen4@bloomberg.net

Last Updated: April 29, 2008 22:48 EDT