The General Administration of Civil Aviation (CAAC) has officially approved the launch of the Tianjin-based joint venture cargo airline to be owned and operated by Sinotrans and Korean Air, reports Maryland-based Air Transport World (ATW) News.

The new entity, said ATW, has a registered capital of US$65 million, in which Sinotrans Air Transportation Development Co. holds 51 per cent with an investment of $33.15 million.

Korean National Airlines (KE) has invested $16.25 million for a 25 per cent stake. Minority shareholders are Hana Capital with 13 per cent and Shinhan Capital with 11 per cent.

"So far we haven't figured out the specific plans for the JV," said Sinotrans Air Transportation Development president Zhang Jianwei.

Korean Air Cargo president Ken Choi has said it will launch with one 747F and two A300Fs. The initial three aircraft will come from KE, but the JV will be expected to secure its own planes by its second year of operation, when "they'll have to stand on their own feet," Mr Choi said.