Flag carrier Air China has signed a strategic cooperation framework agreement with the shipping company Sinotrans Shipping, one of the largest shipping companies in China.
Tthe Beijing-based airline said in a statement that Air China’s unit, Air China Cargo, and Sinotrans will work together on product design and development, coordination on logistical issues and further explore the possibility of joint investment in infrastructure building and jointly expanding in overseas markets.
This is a slightly strange arrangement. They both carry goods and Sinotrans already has an air transportation united. Perhaps there is thought of further consolidation down the line.
Wall Street Journal Online said the airline may also consider establishing closer equity ties with Sinotrans’s Shanghai-listed unit, Sinotrans Air Transportation Development. The company announced this in a statement without elaborating.
Meanwhile Sinotrans Shipping is set to almost double the size of its fleet by 2011.
Chairman Zhao Huxiang said ship prices have dropped by up to 60% compared with the peak last year, which provides a good opportunity for fleet expansion.