New scheduled flights to Zhengzhou suggest a larger project is underway

[caption id="attachment_16140" align="alignright" width="300"] Longhao's soon-to-launch flights to Zhengzhou are the beginning of a closer relationship with Henan province.[/caption] Scheduled freighter flights will connect Guangzhou Airport (CAN) and Zhengzhou Airport ( CGO ) beginning in mid-June, and although the operator has not publicly identified itself, Guangzhou-based Longhao Airlines is the only option. In a rapidly developing air cargo market like Central China where airports in Xi’an and Zhengzhou land new scheduled freighter flights almost on a weekly basis, not every flight matters. With this flight, that is not the case. The operator of this planned link between the Pearl River Delta and Henan province is said to be based in Guangzhou, sources familiar with the project told Cargo Facts . At present, there are only two freighter operators based in the city – China Southern Airlines and relative newcomer to the space, Longhao Airlines . China Southern Airlines already operates dozens of passenger flights between CGO and airports across China and Asia. A single freighter flight would hardly be surprising. But China Southern Airlines has not announced plans for freighter flights to CGO. That leaves only one other possibility – Longhao Airlines. Longhao has gradually expanded its fleet of 737 Classic freighters, the most recent addition a 737-400F (27916, ex-Japan Transocean Air) on lease from Vallair [ FAT 004457 ]. As the carrier puts more freighters into service, new flights follow. In late April, Longhao commenced five-times weekly service between Guangzhou and Taipei (TPE). Although the Taipei service is indicative of the carrier’s ability to follow market opportunities and utilize its freighter fleet, the scheduled service pales in comparison to the importance of the Zhengzhou flight. Longhao is also said to have a new investor – from Zhengzhou. Might there be a link between the source of magnetism pulling Longhao flights into CGO and this new investor? Almost definitely. Late last month, a delegation from “a large state-owned enterprise” visited Longhao Airline’s parent company in Guangdong and agreed to establish a joint venture company, according to a statement from Longhao. According to Longhao, the two companies will “promote the construction of the two bases in Zhengzhou and Guangzhou,” and will expand airport development and the launch of domestic and international routes. The transition from one-off charter flights between CGO and CAN to regular scheduled flights is likely the first step in this relationship. As for the identity of Longhao’s new JV partner, there are few candidates apart from the state-owned investment arm of the provincial government, Henan Civil Aviation Development & Investment Co (HNCA). Although details regarding the size and scale of the investment are slim at this point, Cargo Facts believes more information will surface next week, when flights launch. Those familiar with HNCA may recall a 2013 deal between the conglomerate and Luxembourg-based Cargolux , under which HNCA acquired a 35% stake in the all-cargo carrier . For some time now, the pair was expected to launch a JV carrier, to be based out of CGO. Though Cargolux has gradually fortified its presence at the hub under the Cargolux and Cargolux Italia AOCs, plans for a new JV carrier, “ Henan Cargo Airlines ,” have been postponed multiple times. In contrast, Longhao already possesses a Chinese AOC and with adequate backing, should be able to grow its fleet rapidly. Up until now, much of Longhao’s business has focused on operating charter flights on behalf of SF Express . With new investment and CGO as a springboard for international flights, Longhao has become an airline to watch. Interested in how the global freighter fleet will develop over the next 20 years? The Cargo Facts Consulting 2019 Freighter Forecast is available now. Visit www.cfcinsights.com for more information. Those who purchase the Report prior to 17 June will also gain access to a live webinar with Cargo Facts Consulting Managing Director and report author, Frederic Horst.

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