Shanghai Airlines was originally set up by the Shanghai municipality, and has since received extensive private investment from within China. Its route network is confined to Asia, with an extensive Chinese domestic network as well as routes to Japan, South Korea and south east Asia. It joined the Star Alliance in 2007, but as of 1 November 2010 it is no longer a member. The reason being its impending merger with China Eastern Airlines, a future member of SkyTeam (with routes reaching Europe, the Middle East, North America and Australia).
It will be a minor loss for Star Alliance frequent flyers, given the concentration of domestic services, but it may well have the title of the shortest running Star Alliance member to date. Its reputation was mixed, with good service in the air by Chinese standards, but poor ground service especially when things went wrong. For what it's worth, this is the Skytrax rating details, which places it at 3 stars - the same overall rating as all major US carriers.
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