[photopress:logistics_korean_air.jpg,full,alignright]A joint venture between Korean Air and Sinotrans Air Transportation Development is expected to be launched as Galaxy International in the first half of this year.
Kim Dae-heui, Korean Air’s general manager for cargo in China said Galaxy International will be based at Tianjin Binhai International Airport.
Korean Air, the world’s largest commercial cargo airline, first announced plans in 2006 to set up a cargo joint venture with Sinotrans Air, a subsidiary of Sinotrans, China’s biggest logistics company. So it is two of the largest players in the air cargo logistics getting together in possibly the world’s largest market.
The cargo joint venture has registered capital of $65 million, with Sinotrans Air controlling a 51% stake and Korean Air holding 25%. The remainder is held by two South Korean investment companies — Hana Capital and Shinhan Capital.
Kang Kyoo-won, Korean Air’s managing vice-president for China, said, ‘Sinotrans Air’s domestic network and Korean Air’s extensive international network will be complementary.’
The South Korean carrier’s cargo business in China accounted for 25% of its total cargo revenue last year.
With annual growth of 17% in the past decade, China has become one of the world’s fastest growing air cargo markets. Route network details for Galaxy International are not yet available.
Source: China Daily