In line with this strategy, Jade Cargo launched a new cargo service from Amsterdam via Vienna to Chengdu Shuangliu Airport carrying a nearly full load on 1 December 2009. The twice a week service will be increased to three times a week in January, 2010.
Utilising a B747-400ERF freighter for the service, the aircraft has a payload of between 112-115 tonnes, with a maximum of 127 tonnes and will be carrying mostly general cargo such as high tech products, machinery from 20 tonnes, and garments, according to Jade Cargo CEO, Kay Kratky in an interview with Payload Asia after the signing ceremony with the Chengdu Municipal Government.
Agreement details
“Our agreement with the Chengdu Municipal Government is based on partnership and professionalism,†Kratky says, adding that Jade Cargo’s strategic plan is three fold: To continue to develop Chengdu and the Jade Cargo network one step at a time; to develop a dedicated cargo facility; and to bring Jade Cargo’s expertise and competency achieved in Tianjin, Shanghai and Shenzhen to help Chengdu to become Central China’s aviation hub supported by a logistics interface.
According to Kratky, Jade Cargo – 51 per cent owned by Shenzhen Airlines and 49 per cent by Lufthansa, which operates a fleet of six freighters – is the fastest growing cargo carrier in China. He adds that its services are strongly supported by logistics, freight and management knowledge.
Having developed the coastal areas, the Chinese government’s strategic plan is to develop central and western Jade aims to turn Chengdu into key cargo hub China. “No doubt, there will be changes in Central and Western China and that change will not be due to the central vision alone, but also due to the regional level which will implement development from the grass roots. And that is a decentralised reality,†Kratky says.
“As a Chinese cargo carrier, we have the obligation to support the Central government’s policy to develop this business, however, as a business it must be based on profit and loss principles. So the output of the strategic agreement between the Chengdu Municipal Agreement and Jade Cargo deal must be through management and business development,†he says.
He likened doing business to raising a child and pointed out that it required parental care until the child is grown up. “Things don’t usually go along smoothly. But I believe that in building up a strong foundation for the future, one must be committed to build the foundation for the future and one must not give up when things become challenging,†he adds.
Kratky says that in any relationship, obstacles should be faced to strengthen the companies until success is achieved. “Where I come from we believe in longterm, lasting relationships,†he adds.
Preferential partnership
According to Zuo Chengquan, an executive of the Airport Group of Sichuan province, the province was establishing a special fund to foster airport infrastructure development and it was also looking at establishing preferential partnerships to develop the industry further.
“To support an air cargo logistics park, the province was looking at the construction of a comprehensive traffic network to enhance Chengdu International Airport. Now, we have 98 large and medium airlines from 29 international countries serving Chengdu, as well as 11 direct flights,†he says.
Chengdu international airport, which is scheduled to open its second runwaynext year, will then become the first airport in Central and Western China tohave two runways. Chengdu will enhanceand speed up connections with theairport and make it into an internationalhub. The airport is in talks with carriersfrom Dubai and Japan which plan tointroduce flights next year.
Zuo says there would be mutual benefit from Chengdu’s development and the province plans to operate an air charter logistics hub through the Chengdu Municipal government and Jade Cargo cooperation deal.
The way forward
Kratky says Jade Cargo has established a project team to look at the way forward as a result of the cooperation agreement with the Chengdu government, although nothing has been determined yet.
Reto Hunziker, executive VP, Sales and Marketing, explains that air cargo from Central and Western China is transported to Chengdu for connection with Jade Cargo’s flights to Vienna and Amsterdam in Europe, where it cooperates with Austrian Airlines to reach other destinations in the European Union. Austrian Airlines was acquired by Lufthansa in September this year.
Asked about Jade Cargo’s plans to fly to the US, Kratky says the airline had been looking at operating such flights for the last two to three years, and had put the plans on a backburner when it found that it could not fulfill operational requirements in 2007. “Furthermore, the (financial) downturn showed that it would not be profitable to operate such flights then,†he says.
However, the airline, which aims to become a global carrier, has again started another round of evaluation as to when and where it should fly to the US, including assessing both the east and west coast areas. “We are talking to customers,†he says.
An industry executive told Payload Asia that Jade Cargo had obtained positive feedback from east coast customers and was therefore likely to fly there first, and subsequently to the west coast.
