Korean Air signed a contract with China's Sinotrans Air, a subsidiary of logistics giant Sinotrans Ltd., to form a cargo joint venture airline in China.

Sinotrans is taking a 51% stake while Korean Air will own 25% and be responsible for filling the CEO and CFO positions. The balance of ownership was taken by two Korean investment companies, Hana Capital with 13% and Shinhan Capital with 11%.

The JV will operate both Chinese domestic and international cargo flights and is expected to launch operations during the second half of 2007 with three freighter aircraft. Term of the JV contract is 30 years.

Beijing has been encouraging foreign airlines to set up cargo JVs in China.

Source:佚名