GRANDSTAR Cargo International Airlines (China) is to be liquidated.
The beleaguered carrier, jointly owned by Chinese shipper Sinotrans and Korean Air Lines, suffered a net loss of CNY340.1m (US$53m) last year – widening from losses of CNY20.7m ($3m) in 2010 – which was compounded by rising fuel costs and dire air freight market.
Grandstar, which has already suspended all flights, began operating in 2008 with one 747-400F serving European destinations.
It launched flights to Seoul (South Korea) from its base in the northern Chinese city of Tianjin last July and had plans to add two more aircraft.
“Despite possible losses from the liquidation, we regard partnership with Sinotrans as a valuable asset and plan to continue to seek new business opportunities in China, including expansion of routes,” says Korean Air in a statement.