China Southern Airlines and France KLM delay the joint venture freight project indefinitely

China Southern Airlines Chairman Si Xianmin told ATWOnline at the annual meeting of the International Air Transport Association in Kuala Lumpur that China Southern Airlines and France Airlines decided to delay the launch of joint ventures indefinitely due to the rapid decline of the international freight market...

China Southern Airlines Chairman Si Xianmin told ATWOnline at the annual meeting of the International Air Transport Association in Kuala Lumpur that China Southern Airlines and France Airlines decided to delay the launch of the joint venture cargo business indefinitely due to the rapid decline of the international freight market.

China Southern Airlines Chairman Si Xianmin told ATWOnline at the annual meeting of the International Air Transport Association in Kuala Lumpur that China Southern Airlines and France Airlines decided to delay the launch of the joint venture cargo business indefinitely due to the rapid decline of the international freight market. Originally planned to launch this business in the first quarter of this year, but last month, Si Xianmin said that the company decided to postpone the launch "taking into account the current market conditions."

Si Xianmin said, "We have not given up this business, but when it will be launched depends on when the freight market will recover. So far we have not an accurate timetable." He expects the recovery of the freight market to be later than the recovery of the passenger market. "If the international passenger transport market can recover in the next year, then the freight market will recover after the passenger transport market." China Southern Airlines owns 75% of the joint venture company and was scheduled to operate 10 747s and A330 aircraft within two years. China Southern Airlines is the only airline in the three major airlines that does not operate the cargo business independently, although China Eastern Airlines and Air China Cargo continue to lose money.

Air China is still interested in establishing a joint venture freight company with Cathay Pacific in Shanghai. Cathay Pacific CEO Tony Tolder told ATWOnline that the two airlines are still negotiating. "I am not sure if this service will be launched this year."