Next year, China will launch a new express air cargo airline called United Star Express, which will serve Mainland China, Hong Kong, Macau and Taiwan. The new entity will be formed from Okay Airways – China’s first private-sector airline – along with ATSG West Limited, Vipshop Holdings and two other parties.
Okay Airlines is based at Tianjin Binhai International Airport. ATSG West Limited is a subsidiary of Air Transport Services Group, based in the United States. It provides mid-range Boeing freighters including leasing and operations. Vipshop Holdings is an online discount retailer for brands in China.
United Star Express will be registered in Tianjin’s Dongjiang free trade zone, with registered capital of US$63 million. The joint venture is pending approval by related governments with plans to begin operations by the middle of 2016. Okay Airlines is putting up the lion’s share of the money, and Okay’s chairman, Wang Shusheng will be the company’s CEO. The vice chairman will be Richard Corrado, chief commercial officer of ATSG, who is also president of its leasing business, Cargo Aircraft Management, Inc.
The founding of this airline is driven by the rapid growth of e-commerce in China. Presently express air services in China depend on the belly space in passenger aircraft. Fewer than 120 all-cargo freighters operate in China and only a fraction serve the express market. United Star Express will fill that gap with third-party express and charter aircraft services that will cover China and surrounding regions in Asia. The company plans to eventually expand to Europe and the Americas.
Additionally, the new airline will operate under its own AOC with its own fleet, airline insignia, routes and organization. To start off it expects to have six small and midsize freighter aircraft including 737s, 757s and 767s.
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