News
Cargolux signs Henan Cargo Airlines joint venture
June 16th 2017
Luxembourg-based cargo carrier Cargolux has inked a joint venture equity agreement with the Henan Airport Group (HAG) and the Xinggang Investment Group Company Ltd. (XIGC) to establish Henan Cargo Airlines. Read More »
A Cargolux joint venture on the Mainland has been on the table for several years but myriad regulation and shareholder consensus slowed the process.
The freight carrier was initially to be called Cargolux China, with Cargolux taking a 35% stake in the cargo airline, but according to the latest framework the parent company will only hold 25% in the freight forwarder, “the maximum shareholding a foreign entity can legally own in a Chinese operator as specified by Chinese law”, it said.
The majority 75% will rest in the hands of HAG, XIGC and the Henan Civil Aviation Development and Investment Co. (HNCA).
Henan Cargo Airlines hopes it will be certified to launch operations in 2018. Its goal is to capture 80% of the China-U.S. cargo market.
The start-up will leverage Zhengzhou's location as a central multimodal hub offering easy access to numerous Eastern Chinese cities via air, road and rail. Zhengzhou has also been chosen as headquarters of AirAsia China, the AirAsia Group’s latest subsidiary.
