While most of China’s domestic cargo airlines are experiencing operating losses due to sluggish market demand resulting from global economic uncertainty and China’s export slowdown Shun Feng (SF) Airlines, a Chinese privately run cargo operator, plans to expand its fleet. According to its chairman Li Dongqi the carrier will expand its freighter fleet from seven to more than 25 aircraft to meet growing demand for domestic express delivery services.

Last year, Shun Feng’s cargo traffic volume was 450,000 tonnes, which Li predicts will climb to more than 600,000 tonnes this year and jump to 1.5 million tonnes by 2015. But Li also admitted that
“being short of a comprehensive cargo route network and an airport tailored for air cargo would hinder further growth of the carrier’s cargo business.” Li said another challenge the carrier faces is
“limited capacity,” despite its ambitious fleet expansion plan.

Shun Feng has cooperation agreements with other domestic cargo carriers, including Shenzhen Donghai Airlines and Yangtze River Express Airlines, for the lease of cargo aircraft for charter services. It is also negotiating with China’s big three airlines for similar agreements. Shun Feng Express Group is the controlling stakeholder with an 85 per cent stake.