Aviation Industry Corp. of China (AVIC) is planning to launch a cargo carrier soon in an effort to boost sales of the MA600 turboprop freighter, which is made by its subsidiary Xi’an.
The new cargo venture has been granted an air operator certificate from the Civil Aviation Administration of China (CAAC); the airline will be based in Guangzhou.
AVIC subsidiary Joy Air holds a 45% stake with an investment of CNY225 million ($32.6 million), while Guangzhou Dongling Industrial Investment Co. (CNY175 million) and Beijing Fuda Capital Management Co. (CNY100 million) hold 35% and 20% stakes, respectively.
Local industry analysts pointed out that the main reason AVIC wanted to launch the new cargo venture was to promote sales of the Xi’an MA600 freighter—the cargo variant of the domestically-produced Xi’an MA60 regional turboprop—despite the continued stagnant air cargo market, which has particularly affected southeast Asia.
The Xi’an MA600 freighter made its inaugural flight in 2012 and received an airworthiness certificate in 2013 but the aircraft has yet to receive any orders.
Xi’an Aircraft Industrial Corp., manufacturer of the MA60 passenger and MA600 freighter aircraft, is a subsidiary of AVIC.
It is a common practice in China for a domestic manufacturer to launch a carrier to promote the sale of its aircraft. For example, Joy Air, which is wholly-owned by AVIC, was initially established by AVIC and China Eastern, and operated a single fleet type of AVIC-produced Xi’an MA60s. Chengdu Airlines, in which the Commercial Aircraft Corp. of China (COMAC) holds the controlling stakes, just took delivery of two COMAC-produced ARJ21s and also signed a cooperation agreement with COMAC for an undisclosed number of C919s.
ATW – Air Transport World
Aviation Industry Corp. of China launches cargo airline based in Guangzhou
