[photopress:Koreanair.jpg,full,alignright]Korean Air is setting up a joint venture with China’s largest logistics company Sinotrans in China in a bid to find its way into the Chinese air cargo market.
The airline has signed a contract with Sinotrans Air Transportation Development, an affiliate of Sinotrans, to establish an air cargo joint venture in Beijing. Capital will be $65 million, with Sinotrans Air contributing 51 percent and Korean Air 25 percent, respectively, with two other Korean investors, Hana Capital and Shinhan Capital, participating. However, Korean Air will effectively manage the firm as its representatives are to take the CEO and CFO posts.
The joint venture will go into operation in June next year with three cargo planes. Korean Air chairman Cho Yang-ho said, ‘With the joint venture, Korean Air will be able to make inroads into China, the world’s largest logistics market.’
Source: The Chosun Ilbo