China has approved the
cargo airline Korean Air (KAL) is establishing in China
in joint-venture partnership with mainland Chinese logistics firm Sinotrans.
Civil Aviation Administration of China (CAAC) says in a statement it has
granted approval for KAL and Sinotrans
to establish the dedicated cargo carrier.
says Sinotrans is investing
$33 million for a 51% stake, while the Korean side has the remaining stake
shared between KAL which is investing $16 million for a 25% stake, Hana Capital is investing $8
million for 13% and Shin Han is investing $7 million for 11%.
carrier will be based at Tianjin
and will operate on domestic and international routes.
is Beijing’s port city
and the same place KAL was originally planning to establish a cargo airline
last year in joint venture partnership with privately-owned Chinese carrier
talks with Okay failed to reach an agreement and then last September KAL
disclosed it was starting a cargo airline with Sinotrans, a Chinese state-owned company that is one
of the country’s largest logistics firms.
CAAC statement fails to mention when the new cargo carrier will start operating
and what type of aircraft it will use. KAL operates Boeing 747Fs and the CAAC statement
says most of the start-ups’ pilots will come from Korea.
speaking, the CAAC prevents start-up airlines, backed by foreign investors,
from recruiting pilots from mainland Chinese carriers.