Firm Controlled by JD.com Founder Cleared to Establish Chinese Cargo Airline
Reuters, 8/03/21
A company controlled by the founder of Chinese B2C e-commerce platform operator and retail infrastructure service provider JD.com (Nasdaq: JD; 9618.HK) has been granted approval to set up a new cargo airline based in the eastern province of Jiangsu, reports Reuters, citing an announcement from China's aviation regulator today.
Jiangsu Jingdong Cargo Airlines, with registered capital of RMB 600 mln (USD 92.83 mln), has obtained preliminary regulatory approvals to launch a new carrier, the Civil Aviation Administration of China said in a notice.
Suqian Jindong Zhanrui Enterprise Management, controlled by the JD.com founder Richard Liu, will contribute 75% of the founding capital while Airport Group in Nantong, a city in Jiangsu, will supply the rest, according to CAAC.
The airline is planning to use Boeing 737-800 planes for its fleet, the CAAC added.
The setup of a new cargo airline comes as JD.com's online shopping rival Alibaba Group (NYSE: BABA; 9988.HK) has been expanding its fleet. YTO Cargo Airlines, owned by Alibaba-backed YTO Express (6123.HK), is introducing freighters converted from 767 and 777 planes.
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Keywords: logistics JD Airlines Jindong Zhanrui Enterprise Management Richard Liu e-commerce Internet aviation B2C JD.com JD 9618.HK
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