MIAMI – The global cargo market is really the place to be as a new actor, the Chinese Jiangsu Jingdong Cargo Airlines, is entering the scene with plans to set up a 310-destination network including Hong Kong (HKG), Macau (MFM), and Taiwan (TPE).
The newcomer is part of a Chinese e-commerce conglomerate, JD.com, and an extension of its subsidiaries JD Logistics and JD Express. The new domestic cargo carrier capital of US$93m (RMB600m) is 75% owned by Suqian Jingdong Zhanrui Enterprise Management with the remainder 25% belonging to the Nantong Airport Group. The main stakeholder is controlled by JD.com founder, Richard Liu.
CAAC Approval is a Go
Jiangsu Jingdong Cargo Airlines, based at Nantong-Xingdong Airport (NTG), has obtained approval from the CAAC ( Civil Aviation Administration of China) on August 3 and plans to operate a fleet of Boeing 737-800 aircraft as indicated by the CAAC. No further information was made available by JD.com.
The new airline, poised to speed up shipments within China with next-morning or next-day deliveries, comes as an answer to the recent fleet expansion by the direct competitor Alibaba Group controlled YTO Cargo Airlines and the introduction of Boeing 767 and 777 freighters converted aircraft.
JD.com subsidiary, JD Logistics, whose executive arm will be Jiangsu Jingdong Cargo Airline, is not new to air services. Since June 8 it has already operated a cargo route, by using the services of China Central Airlines Boeing 737 freighter, between the Beijing (PEK), Tianjin (TSN), Hebei area, and the Great Bay Area of Guangdong (CAN), HKG, and MFM.
Since last year, the JD conglomerate has also partnerships with Zhejiang Loong Airlines (GJ), and Zhongyuan Longhao Airlines (GI) while resourcing for freight space with from China Southern Airlines (CZ), China Eastern Airlines (MU), and Hainan Airlines (HU). JD logistics covers a total of over 100000 routes and can deliver more than 300 cities.
Article sourced from Reuters, Asia Cargo News, JD Logistics press release
Featured image: Boeing 737F White Tail. Photo: Alberto Cucini/Airways