The Civil Aviation Administration of China (CAAC) has issued an initial approval to establish AVIC Cargo Airlines, a cargo carrier set up by China's Joy Air Holding, Guangzhou Donlinks
Group and Beijing Fuda Asset Management, China Aviation Daily reported citing CAAC's official website.
According to the report, the new Guangzhou Baiyun International Airport-based carrier has a registered capital of 500 million yuan in which Joy Air Holding has a 45% stake. The vice president of
Joy Air, Wu Wei, will be heading AVIC Cargo Airlines.
Joy Air is jointly owned by China Eastern Airlines and the AVIC Group and is based at Xian Airport. It operates a fleet of regional MA-60 aircraft on a route network serving northwestern China.
Focusing on e-Commerce shipments
According to data from CAPA, China Eastern Airlines in September this year announced plans to transfer its entire 5% stake in Joy Air for CNY35 million (US$5.5 million). Joy Air Holdings Ltd holds the remaining 95% stake in the carrier.
Pending final approval from CAAC, which is expected by early next year, the new cargo airline will operate domestic and international cargo and mail services using B757 and Chinese-made MA600 freighters.
Joy Air will initially provide pilots, dispatchers, maintenance crews and other staff for the new cargo carrier, which is expected to focus on the transport of e-Commerce related shipments.
Nol van Fenema