China Air Cargo finally looks set to get the go-ahead for launch

The Civil Aviation Administration of China (CAAC) looks set to approve a transport license for the start-up of China Air Cargo.
The CAAC said China Air Cargo, which placed an order for two B757-200 conversions earlier this year, would use Guangzhou Baiyun International Airport as its base of operations for domestic and international flights, with domestic destinations named as Hong Kong, Macao and Taiwan.
The airline will operate a turboprop Xian MA600 aircraft as well as the two B757-200s.
Anyone wishing to submit a comment on the application has until November 18 to do so.
The B757 aircraft has been popular with express and postal airlines in China, suggesting this will be the target market and not general airfreight.
The company is being set up by eight investors, with Joy Aviation Holdings investing the most capital at Y225m.
The fast growing Chinese postal and express market, which has now exceeded that of the US to become the largest in the world, has led to the rapid expansion of freight airlines in the country over the past year.
Chief amongst them has been China Postal and SF Airlines, which leads the Chinese market with annual tonnages of more than 800,000.
Earlier in the year China Postal Airlines ordered six B757-200 conversions and 10 B737-800 conversions, while earlier this month SF Airlines took delivery of its seventeenth B737 conversion, it has ordered an unspecified number of B737-800s conversions, and last year took delivery of its first widebody aircraft.
Meanwhile, YTO Express Airlines, which launched services in September last year, has also ordered 10 B737-800 conversions and has revealed plans to launch international services.
The launch of United Star Express, a joint venture between lessor ATSG, online retailer Vishop and Chinese carrier Okay Airline, is also expected to launch soon after a slight hold up.