Air China is planning to build China's largest air freight company with Hong Kong Citic Taifu Company and Beijing Capital Airport Group, according to Li Jiaxiang, a senior official of Air China.
The registered capital for the joint venture will be 2.2 billion yuan (270 million US dollars) with Air China as the biggest shareholder.
The proposal had been submitted to the General Administration of Civil Aviation of China and the company was expected to be set up by the end of 2002.
The joint venture would own four Boeing-747 cargo planes and employ about 1,200 staff. The air routes would reach 29 cities in 19 countries including New York and Frankfurt.
The annual cargo business of Air China is worth more than three billion yuan (370 million US dollars), 25 percent of its total income.
Experts pointed out that separating freight and passenger services was the main trend of aviation development. Lufthansa, Air France, Japanese Airlines and China Eastern have made similar moves.
( China Daily July 26, 2002)
