The Civil Aviation Administration of China (CAAC) has approved an air operator’s certificate for Ningxia Cargo Airlines, which is to become the first cargo carrier to be based in the west of the country, the Ningxia Autonomous Region.

Based in Yinchuan, the carrier has a registered capital of CNY120 million (US$19.6 million), in which Shan’xi Tongyang Investment Management Co. holds a 53 per cent stake, Xi’an Huijie Industrial Logistics Co. with a 44 per cent stake, along with three other companies holding the remainder.

The new venture, which is scheduled to launch its inaugural flight in September, will take delivery of three Boeing 737s purchased from Zhejiang Loong Airlines in August. Beginning with domestic services the carrier plans to expand its fleet to 50 aircraft by 2020, as well as open international routes to the Middle East, Southeast Asia and Northeast Asia.