News Content
New cargo carrier eyes China's express market as healthy and growing
A NEW cargo airline to serve China's e-commerce business, has been established by mainland passenger airline OKAIR and Air Transport Services Group (ATSG), a Nasdaq-listed US company that specialises in medium widebody freighters.
OKAIR will hold a 43 per cent stake in United Star International Express Airlines, while ATSG West will hold 25 per cent with mainland e-commerce company VIPSHOP holding12 per cent, reported Hong Kong South China Morning Post.
"The international cargo market is not good at the moment but the Chinese domestic market is - especially the express market that is growing at 40 per cent every year," said ATSG chief commercial officer Richard Corrado.
"We project demand for medium widebody freighters to pick up in China, so we believe it is a good time to enter the market," he said.
A B767 freighter carries around 60 tonnes, compared with around 18 tonnes for a narrowbody B737 and 110 tonnes by super-large B747 freighters.
The freighter fleet in China, less than 120 planes, is dominated by narrowbody B737s in domestic operation and a small number of B747s on intercontinental routes, said the SCMP.
OKAIR vice-president Lu Chao, who will be United Star's general manager, said it planned to start with six freighters in the middle of next year, when it was expected to gain a licence to operate, and grow to a fleet of 30 planes in five years.
Mr Lu said Shenzhen's SF Express, the mainland's largest express company, which wants to become China's FedEx, used external operators for two thirds of its air cargo demand. It has 20 self-owned freighters while OKAIR, formed in 2005, currently has 31 passenger jets, including 13 Chinese-made Modern Ark regional jets.
OKAIR will hold a 43 per cent stake in United Star International Express Airlines, while ATSG West will hold 25 per cent with mainland e-commerce company VIPSHOP holding12 per cent, reported Hong Kong South China Morning Post.
"The international cargo market is not good at the moment but the Chinese domestic market is - especially the express market that is growing at 40 per cent every year," said ATSG chief commercial officer Richard Corrado.
"We project demand for medium widebody freighters to pick up in China, so we believe it is a good time to enter the market," he said.
A B767 freighter carries around 60 tonnes, compared with around 18 tonnes for a narrowbody B737 and 110 tonnes by super-large B747 freighters.
The freighter fleet in China, less than 120 planes, is dominated by narrowbody B737s in domestic operation and a small number of B747s on intercontinental routes, said the SCMP.
OKAIR vice-president Lu Chao, who will be United Star's general manager, said it planned to start with six freighters in the middle of next year, when it was expected to gain a licence to operate, and grow to a fleet of 30 planes in five years.
Mr Lu said Shenzhen's SF Express, the mainland's largest express company, which wants to become China's FedEx, used external operators for two thirds of its air cargo demand. It has 20 self-owned freighters while OKAIR, formed in 2005, currently has 31 passenger jets, including 13 Chinese-made Modern Ark regional jets.
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
