Home' Asian Aviation : AAV February 2011 Contents 51 percent of China Cargo (down from 70 percent
now), China Ocean Shipping will hold 17 percent
(down from its current 30 percent), while EVA
Air ways' Concord Paci c unit and SIA Cargo will
own 16 percent each.
China Eastern, EVA and SIA Cargo are already
linked through cargo ventures, with China Eastern
being majority owner of Shanghai Airlines Cargo,
in which EVA held an interest, and also majority
owner of Great Wall Airlines, in which SIA Cargo
has a stake. Changes at China Cargo Airlines are
expected to result in a merger of its cargo operations
in order to respond to new competition in the
market, particularly from of a new cargo joint venture
between Air China and Cathay Paci c.
China Cargo operates 13 freighter aircraft,
including three Airbus A300s, two Boeing 747-
400s, three Boeing 777s and ve McDonnell Douglas
MD-11s. It serves a global network of 26 cities from
Shanghai, throughout Asia, China, Europe and the
For SIA and EVA, the deal gives them access to
the booming Chinese freight market and comes at
a time when Singapore's role as a cargo hub for the
region is declining.
Meanwhile, Air China and Cathay Paci c Airways
have received regulatory approval for their new cargo
joint venture, which will also be based in Shanghai.
Air China Cargo is 51 percent owned by Air China
and 25 percent by Cathay Pacific, with China
National Aviation subsidiary Fine Star holding the
remaining 24 percent. e new venture will operate
a eet of eight 747-400 freighters, coming from Air
China, and four, converted 747-400s from Cathay.
Air China Cargo joins an already busy Shanghai
cargo market, which is the biggest cargo market in
China. Among Chinese competitors is Jade Cargo,
which is itself expanding.
Jade Cargo was established in October 2004 as
a joint venture between Shenzhen Airlines (which
holds a 51 percent stake), Lufthansa Cargo (25
percent) and German finance institutions (24
percent). The carrier is based in Shenzhen and
operates six 747-400 extended range freighters
throughout Asia, China, Europe, the Middle East
and most recently the United States.
Cathay's investment in Air China Cargo is part of
the Hong Kong-based carrier's ongoing development
of its freight business. e carrier is committed to
develop Hong Kong's airfreight hub role, for example
investing HK$5.5 billion (US$707 million) in a new,
state-of-the-art Cathay Paci c Cargo terminal at
Hong Kong International Airport (HKIA).
e airline's subsidiary Cathay Paci c Ser vices was
awarded the franchise in March 2008by the Hong
Kong Airport Authority to invest in, design, construct
and operate the new air cargo terminal at the airport
under a 20-year agreement. e new facility, which
will begin operations in early 2013, will be based on a
10-hectare site in the airport's cargo area.
Work on the facility was originally due to begin in
2008, but was postponed due to the nancial crisis.
e terminal is being designed for annual cargo
throughput of 2.6 million tonnes and will increase
the airport's total cargo capacity by 50 percent to
7.4 million tonnes. e facility will be one of the
most advanced in the world, according to the airline,
Japan Airlines has turned away from dedicated freighter services.
Cathay's freighter fleet includes 747-400ERFs.
22 AsianAviation | FEBRUARY 2011
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