A government-supported drive to develop China's airfreight industry is continuing with Air China spinning off its cargo division and preparing to expand it with additional freighters.
Early in March the carrier formally launched Air China Cargo to take over the operation of its four-strong Boeing 747-200F fleet. It will also be responsible for cargo carriage on the group's passenger aircraft.
Air China Cargo is now a 51%-owned subsidiary of the Beijing-based flag carrier, while Hong Kong-based conglomerate CITIC Pacific holds 25% and Beijing Capital International Airport 24%. Air China Cargo president Zhang Xueren said that the new subsidiary plans to purchase two 747-400Fs within two years. It will also add three Tupolev Tu-204Fs that were ordered by the Chinese government two years ago for China Southwest Airlines, which Air China acquired last year.
China's cargo sector remains in its infancy but is experiencing strong growth as the country's economy continues to expand at a rapid pace. The government has said it wants to see more airlines focusing on the freight business.
There are now four dedicated cargo airlines in the country including Air China Cargo. China Cargo Airlines is a second international operator, owned by China Eastern Airlines and China Ocean Shipping. There are also two domestic carriers: China Postal Airlines, which is controlled by the Chinese postal service and China Southern Airlines; and Yangtze River Express, owned by Hainan Airlines and Shanghai Airport Group.
China Southern Airlines also operates dedicated cargo services of its own with 747Fs on international routes and has been considering spinning off its freight division as China Eastern did several years ago and Air China has just done. China Southern is at the same time considering expanding its cargo network, possibly with dedicated freighter services to Australia and Russia. It primarily serves US destinations, but also has services to Europe.
Other Chinese carriers are meanwhile looking to enter the freight game, such as domestic passenger operator Shenzhen Airlines, which is considering adding Airbus A300-600 freighters. Says Air China Cargo's Zhang: "Air cargo transportation is no longer the poor cousin of passenger services. The air cargo industry is growing at a double-digit rate."
He says the carrier aims to earn revenues of Yuan 4.1 billion ($495 million) this year "and become one of the top 10 cargo carriers in the world by 2010".
Source: Airline Business
