News Content
China to merge 3 cargo airlines to create Asia dominator, says report
CHINA intends to merge its three biggest freight airlines to build Asia's largest air cargo operator, a top aviation official was reported as saying.
"Currently, this merger is being actively pushed," Xinhua quoted Zhou Laizhen, deputy chief of the Civil Aviation Administration of China (CAAC) as telling an industry forum.
China's top three cargo operators are the freight arm of Beijing-based flag carrier Air China, Shanghai-based China Cargo Airlines and Guangzhou-based China Southern Airlines Cargo.
The government has recommended the merger of the cargo business of the three airlines as early as 2009, but the plan was delayed as the carriers were busy expanding their respective cargo businesses, state media reported.
Air China Cargo is a joint venture between Air China and Cathay Pacific. With a registered capital of US$52.19 million, the company owned three Boeing 747-400 cargo freights as of January 2015, and had ordered eight Boeing 777 cargo planes.
China Cargo Airlines is a venture between China Eastern Airlines and Cosco. China Southern Cargo is a unit of China Southern Airlines with six Boeing 777-200 and two Boeing 747-400 cargo planes, and it will introduce another six B777-200s by the end of 2015.
But any new entity will face competition from SF Express and YTO Express which have strong capacity in the cargo business. SF Express had 18 cargo planes by the end of 2014.
"Currently, this merger is being actively pushed," Xinhua quoted Zhou Laizhen, deputy chief of the Civil Aviation Administration of China (CAAC) as telling an industry forum.
China's top three cargo operators are the freight arm of Beijing-based flag carrier Air China, Shanghai-based China Cargo Airlines and Guangzhou-based China Southern Airlines Cargo.
The government has recommended the merger of the cargo business of the three airlines as early as 2009, but the plan was delayed as the carriers were busy expanding their respective cargo businesses, state media reported.
Air China Cargo is a joint venture between Air China and Cathay Pacific. With a registered capital of US$52.19 million, the company owned three Boeing 747-400 cargo freights as of January 2015, and had ordered eight Boeing 777 cargo planes.
China Cargo Airlines is a venture between China Eastern Airlines and Cosco. China Southern Cargo is a unit of China Southern Airlines with six Boeing 777-200 and two Boeing 747-400 cargo planes, and it will introduce another six B777-200s by the end of 2015.
But any new entity will face competition from SF Express and YTO Express which have strong capacity in the cargo business. SF Express had 18 cargo planes by the end of 2014.
Latest News
- For the first time, tianjin Port realized the whole process of dock operati...
- From January to August, piracy incidents in Asia increased by 38%!The situa...
- Quasi-conference TSA closes as role redundant in mega merger world
- Singapore says TPP, born again as CPTPP, is now headed for adoption
- Antwerp posts 5th record year with boxes up 4.3pc to 10 million TEU
- Savannah lifts record 4 million TEU in '17 as it deepens port
