Executive Briefings

Despite Airfreight Doldrums in Asia, New Cargo Airline Begins Operations in China

Six months after the Civil Aviation Administration of China gave CDI Cargo Airlines the green light to launch operations, the carrier has commenced B737-300 service from its Hangzhou Xiaoshan International Airport hub to Changchun, via Qingdao. And although Asian cargo has been rather sluggish lately, CDI Cargo's Alex Zhang feels that the carrier is poised for success.

Unlike the Shenzhen-based Jade Cargo, which officially folded in June, and the Tianjin-based Grandstar Air Cargo, which suspended operations in May, CDI Cargo Airlines is targeting the domestic Chinese market for growth. Zhang believes this distinction will help the carrier offset some of the declines seen in the Asia-Pacific lately.

"No doubt that all long-haul/wide-body freighter operators are suffering a tough time at the moment, based on the current weak demand situation of international markets," Zhang said. "But most of the domestic/narrow-body freighter operators are performing well, due to booming domestic demand." The Chinese express sector has been performing especially well recently, Zhang added, as evidenced by the sector's nearly 30 percent CAGR increase.

But CDI Cargo sees potential beyond its domestic market.

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Unlike the Shenzhen-based Jade Cargo, which officially folded in June, and the Tianjin-based Grandstar Air Cargo, which suspended operations in May, CDI Cargo Airlines is targeting the domestic Chinese market for growth. Zhang believes this distinction will help the carrier offset some of the declines seen in the Asia-Pacific lately.

"No doubt that all long-haul/wide-body freighter operators are suffering a tough time at the moment, based on the current weak demand situation of international markets," Zhang said. "But most of the domestic/narrow-body freighter operators are performing well, due to booming domestic demand." The Chinese express sector has been performing especially well recently, Zhang added, as evidenced by the sector's nearly 30 percent CAGR increase.

But CDI Cargo sees potential beyond its domestic market.

Read Full Article