Sinotrans and Korean Air have won approval for their joint-venture cargo airline. The new company will be capitalized at US$65million and will be owned 51% by Sinotrans, 25% by Korean Air and the remaining 24% split between Chinese investors, HanaCapital and Shihan Capital.

The new joint venture will now apply for operating licenses and is expected to concentrate on serving the rapidly growing routes into northern China, which the Koreans are keen to enter.