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ES701 Madrid - Xian - Shanghai

ES702 Shanghai - Xian - Madrid

ES701 and ES702 are flying across German, Russian, Finnish, Mongolian Republic, and Chinese territory. Apart from transporting cargo from Spain to China and back, Euro Star Arilines would like to pick up domestic load from Xian to Shanghai on the outbound flight and to pick up domestic load from Shanghai to Xian.

Questions:

1(a) Which traffic rights Euro Star Airlines apply for operating Madrid - Xian - Shanghai round trip?

1(b) The flight is going to operate daily from Madrid to China and you are appointed as the station manager in China responsible for the operations of the flight. Head Office wants you to evaluate offer the most cost effect to the airlines, i.e. self-handling or outsource to ground handling agent. Give you point of view supporting your recommendation.