Air China plans to set up cargo hub in Shenzhen

AIR China has unveiled plans to establish an international cargo hub at Shenzhen by 2015 and has signed co-operation agreements with Shenzhen City and Shenzhen Airport.

Rao Xinyu, a senior manager from Air China's Board Secretariat told Shanghai Securities News that the carrier will integrate its fleet in South China to expand both its cargo and passenger business in the region. In addition, it plans to deploy more freighters to serve Shenzhen, reports Xinhua News Agency.

However, Rao Xinyu said Air China will only expand passenger aircraft bellyhold capacity rather than deploy freighters to Shenzhen in the near future.

The entrance of Air China is expected to stir up a fiercer competition in the Shenzhen market with China Southern Airlines and Shenzhen Airlines already operating routes there.

Shenzhen Airlines currently has a fleet of 37 Boeing 737s and 12 Airbus 320s and plans to expand to 100 aircraft by the end of the decade.

Compared to Shenzhen Airlines' narrow-bodied aircraft, China Southern Airlines has deployed larger planes such as the Boeing 747-400 freighters and Airbus 330s in Shenzhen. It also aims to expand its fleet to 80 aircraft by 2010.

Shenzhen Airlines has also set up a joint venture carrier, Jade Cargo International, with Lufthansa. Jade started operations last August. It now has a fleet of four Boeing 747-400 freighters and will soon take delivery of another two B747-400ER freighters.