China Business

Jul 1, 2006

Foreign dominance seen in air cargo market

BEIJING - China's air cargo transportation market is dominated by foreign players and in the years to come, Chinese airlines may choose to form joint ventures with foreign companies to tap this fast-growing market.

According to statistics by China Southern Airlines, more than 90 foreign airlines have entered China and occupy 70% of the country's international air cargo transportation market.

According to estimates by the International Air Transport Association (IATA), China's air cargo transportation market will

grow at 14.4% per year in the 2005-09 period, the fastest among the top ten fastest-growing air cargo transportation countries.

To tap the rapidly expanding market, Chinese air companies could choose to set up joint ventures with foreign companies. China Eastern Airlines is considering letting in strategic investors this year, and China Southern Airlines is mulling introducing foreign firms into its cargo arm.

(Asia Pulse/XIC)

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