KOREAN Air and Sinotrans Air Transportation Development Co Ltd plan to commence operations at their new joint venture in the first half of the year, to tap opportunities from China's fast-growing cargo market.
The joint venture, Galaxy International, will be based at Tianjin Binhai International Airport, Kim Dae-heui, Korean Air's general manager for cargo in China was cited as saying in a China Daily report.
The cargo joint venture has a registered capital of US$65 million, with Sinotrans Air controlling a 51 per cent stake and Korean Air holding 25 per cent. Two South Korean investment companies, Hana Capital and Shinhan Capital, hold the remainder.
The development comes after Korean Air first announced plans in 2006 to set up a cargo joint venture with Sinotrans Air, a subsidiary of Sinotrans Ltd.
"Sinotrans Air's domestic network and Korean Air's extensive international network will be complementary," said Kang Kyoo-won, Korean Air's managing vice-president for China.
The South Korean carrier's cargo business in China accounted for 25 per cent of its total cargo revenue last year, the report noted, saying that China's airfreight market has been growing at a rate of 17 per cent in the past decade.
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