KAL's Entry into
Chinese Air Cargo Market

Sets up a joint venture with Sinotrans Air

Korean Air has established a joint venture with China's largest logistics company Sinotrans Air to secure a bridgehead for the Korean national flag carrier's entry into the Chinese air cargo market.
KAL announced on September 19th that it signed an agreement for the establishment of a joint air cargo company with Sinotrans Air, a subsidiary of Sinotrans.
Sinotrans Air will take a 51 percent stake and KAL will own a 25 percent interest, while Hana Capital and Shinhan Capital will invest a 13 percent share and an 11 percent share, respectively. They will pour $65 million in paid-in capital. The contract will be effective for 30 years and the joint venture will be put into operation three cargo planes starting next June.
A KAL official said Sinotrans takes a controlling stake of 51 percent,
while KAL will dispatch its chief executive officer and chief finance officer. KAL will be responsible for management of the joint firm to capitalize on KAL's know-how as the world's largest cargo carrier.
Sinotrans Air specializes in international airfreight forwarding and comprehensive logistics service with a complete network of operation and information technology all over China, has a history of 20 years and an excellent and rich-experienced staff team. nw

Executives of Korean Air, including KAL Chairman Cho Yang-ho, pose together with their counterparts from Sinotrans Air after inking a deal on the establishment of an joint air cargo company.