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China Cargo Airlines, SIA Cargo launch joint flights

By control on June 26, 2012

Singapore Airlines Cargo and China Cargo Airlines have inked a deal to begin operating joint freighters services between Singapore Changi Airport and Shanghai Pudong International Airport on June 26. The amalgamation of services comes 18 months after SIA Cargo purchased a 16-percent stake in the Chinese freight carrier.

“We have anticipated a greater partnership with China Cargo Airlines since we signed the joint venture agreement in 2010,” SIA Cargo President Tan Kai Ping said in a statement. “The new joint service agreement provides more flexibility and better services to customers as it provides more choices of flights for air cargo shipments between Singapore and China.”

Zhu Yimin, president of China Cargo Airlines, agreed, stating that the joint services will enable SIA Cargo and China Cargo Airlines to “tap into each other's networks” via their respective hubs in Singapore and Shanghai. For SIA Cargo, this means better connectivity to domestic China, he said, while China Cargo Airlines will benefit from better access to Africa, Australia, Latin America and the Middle East via SIA Cargo’s routings.

Yimin said this will then “provide a more comprehensive and extensive network for customers of both airlines.”

The launch of joint services isn’t the only initiative undertaken by SIA Cargo and China Cargo Airlines, however. The carriers are also looking to improve transshipment times in Shanghai and Singapore via more integrated ground-handling services, and to enhance system integration, according to a press release.

Comments

Submitted by Emma on
Hi Kforsythe, thanks for posting this update. A consistent and regular cargo connection is long overdue for Singapore and mainland China and SIA has a great network of routes into Asia and Africa too that will be very helpful to China's trade. As long as Malaysia and China can work together carefully on this to ensure it's mutually beneficial, I think it will be a very popular (and profitable!) partnership. Is the increased air cargo route going to result in increased jobs in both areas? I know you mention ground handling, but will that bring new workers and skills to the area, or is there already an existing framework in place to handle this increase in work?

Submitted by Kforsythe on
Hi Emma, First, thanks for your readership, and also thanks for commenting. I don't want to speculate on this issue, so I've sent your question to my contacts at SIA Cargo. I'll be sure to share their response with everyone.

Submitted by Kforsythe on
Hi Emma, Below is the response from SIA Cargo: We wish to clarify that both Singapore Airlines Cargo as well as China Cargo Airlines have both been operating on this route prior to the joint service operations. The purpose of the joint service serves to provide better flexibility to customers of both airlines. Therefore, it is not exactly accurate to put it as "increased air cargo route." With regards to ground handling, we will be looking at improving process and procedures to facilitate better and more efficient services at both Shanghai and Singapore hubs. As the traffic increases, we do envisage that there could possibly be creation of jobs, transfer of new skills, acquisition of new technology and work-flow processes, etc. However, at this stage, it is still too preliminary to estimate the impact of this.

What Are Your Thoughts?

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