China Eastern Airlines Tuesday inaugurated China Cargo Airlines with a registered capital of 3 billion yuan (US$463 million) in Shanghai as it seeks to compete with global rivals in an increasingly lucrative freight market.
The Shanghai-based carrier holds a 51 percent stake in the new joint venture touted as the country's largest cargo carrier, with China Ocean Shipping Group taking 17 percent, Evergreen Airlines owning 16 percent and Singapore Airlines Cargo getting 16 percent.
China Cargo Airlines owns 18 freighters and two Boeing 777 jets will join the fleet this year. It will also use the cargo space in 337 passenger planes of China Eastern so that it is able to extend services to more than 200 destinations worldwide
The cargo airline will integrate air and ground transport businesses. It has obtained approval to run express business services and now operates 10 domestic express routes.
The carrier will also build a truck transit center in the Yangtze River Delta to link its air delivery services with ground transport.
Early this year Air China and Cathay Pacific also launched a joint cargo venture to tap the Shanghai market.
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