Air cargo venture to take flight
By Winny Wang |
February 26, 2010, Friday
|
Print Edition
Print Edition
AIR China and Cathay Pacific Airways will jointly form a cargo venture in Shanghai to tap the booming air cargo business propelled by the recovery in China's exports.
Hong Kong-based Cathay Pacific will invest 1.7 billion yuan (US$249 million) to take 49 percent in Air China Cargo, a wholly owned subsidiary of Air China which will own the balance, according to a framework agreement signed by the two airlines yesterday.
Air China Cargo, the nation's largest all-cargo airline, will start operations as a joint venture airline in the summer of this year, and will operate out of Beijing and Shanghai.
"The joint venture airline will provide the two most important cargo-generating regions on the Chinese mainland with two highly competitive and efficient home-based carriers - Cathay Pacific in the Pearl River Delta and Air China Cargo in the Yangtze River Delta," said Christopher Pratt, chairman of Cathay Pacific.
"Both regions will remain competitive relative to other export zones elsewhere in the world. As a strong home-based cargo airline with a firm foothold in the Yangtze River Delta, Air China Cargo will ensure an efficient capture of cargo movements that may otherwise divert to rival hubs in the region," Pratt added.
The venture operates seven Boeing 747 freighters, and Cathay Pacific will sell four Boeing 747 freighters and two spare engines to it for 1.9 billion yuan.
The Ministry of Commerce predicted China's exports will rise 8 percent this year against a 16 percent fall in 2009.
Hong Kong-based Cathay Pacific will invest 1.7 billion yuan (US$249 million) to take 49 percent in Air China Cargo, a wholly owned subsidiary of Air China which will own the balance, according to a framework agreement signed by the two airlines yesterday.
Air China Cargo, the nation's largest all-cargo airline, will start operations as a joint venture airline in the summer of this year, and will operate out of Beijing and Shanghai.
"The joint venture airline will provide the two most important cargo-generating regions on the Chinese mainland with two highly competitive and efficient home-based carriers - Cathay Pacific in the Pearl River Delta and Air China Cargo in the Yangtze River Delta," said Christopher Pratt, chairman of Cathay Pacific.
"Both regions will remain competitive relative to other export zones elsewhere in the world. As a strong home-based cargo airline with a firm foothold in the Yangtze River Delta, Air China Cargo will ensure an efficient capture of cargo movements that may otherwise divert to rival hubs in the region," Pratt added.
The venture operates seven Boeing 747 freighters, and Cathay Pacific will sell four Boeing 747 freighters and two spare engines to it for 1.9 billion yuan.
The Ministry of Commerce predicted China's exports will rise 8 percent this year against a 16 percent fall in 2009.
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