Today there held a small ceremony in Shanghai announcing Shanghai Airlines (FM) has now gained official Observer status. I am trying to pick up information from the Chinese media. Not much is known at the moment but FM was confirmed to be a full member, not a regional member. Star Alliance CEO Jaan Albrecht was present.
Also FM have applied to fly between Shanghai and Hong Kong within the year. Absolutely good new for Star to have access to this lucrative route.
[Edited 2006-05-10 08:00:56]