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Yuantong to build airline (2)

By Ji Beibei (Global Times)

14:05, November 29, 2012

"Delivery demand from express firms already accounts for one-third of the total airfreight of airlines, and the percentage will rise, resulting in airlines relying more heavily on express firms," Xu Yong, chief consultant with China Express and Logistics Consulting, said.

"Having one's own airline will be a symbol of whether an express firm can grow big," Xu said, noting that a future trend for the express delivery business is a mixed mode of having self-owned planes and chartering planes from airlines.

Rival express firm Shentong is also taking action. Shentong plans to buy an airline and at least 7 airplanes, the Wuhan-based Changjiang Daily reported Wednesday, quoting a senior manager at the company.

The recent qualification cancellation case highlighted the necessity of having one's own airfreight fleet, the manager said.

CATA deprived a Beijing logistics firm of its second-class air cargo agent qualification Tuesday, the fifth case this month after those of Yuantong and three other express firms.

Reports of a flurry of violations in airmail by express and logistics firms have aroused public concern.

"The key to the safety case lies in how to ensure every logistical link can be handled properly, including whether customers lie to express firms about package contents and how couriers are trained to tell which goods are banned," said Xu.

【1】 【2】



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