Sinotrans Air Freight Arm to Set up Venture with Korean Air

July 3, 2007
The joint venture is to be engaged with cargo transport exclusively.

BEIJING — Sinotrans Air Transportation Development Co., Ltd. (SHSE: 600270), a subsidiary of Sinotrans, the largest logistics company in China, will set up a joint venture, Grandstar Cargo International Airlines Co., Ltd., in partnership with Korean Air, one of the largest air cargo companies in the world.

The joint venture is to be engaged with cargo transport exclusively. As the fourth venture in China specializing in air freight, it will be registered with USD 65 million, including USD 33.15 million or 51% from the Chinese party, USD 16.25 million or 25 from Korean Air, other USD 8.45 million or 13% HanaCapital Co., Ltd., and USD 7.15 million or 11% from Shinhan Capital Co., Ltd.

The venture will treat Tianjin Binhai International Airport as the base and mainly devote to domestic and international air cargo transportation. Korean Air will provide pilots and air attendance.

The new entity is to open international routes from China to US at first after it is approved to become operational.