Westward Ho: How a new Chinese cargo carrier can revive an ancient Silk Road outpost

The right people

The secret to a successful cargo airline requires not only a business case, but also the right partners, according to Su. “If you are in the right place at the right time, and have the right partners, why not do business?” Initially, teams from YTO Airlines will work closely with the start-up airline to ensure things get off the ground without turbulence. “The company will start up with 737-300Fs from YTO’s fleet, and will later add widebodies to expand international routes,” said Su. Once off the ground, YTO will allow China Northwest to operate with more autonomy. Though the airline must wait for an AOC before it can begin flight planning, Su already envisions flights to destinations across Central Asia and Southeast Asia from the Xi’an Belt and Road Gateway.

Xi’an’s Xianyang International Airport (XIY), meanwhile, is doing its part to ensure the airfield is prepared to accommodate additional international freighter flights. “Xi’an has entered a new era of rapid urban and economic development, and air cargo and logistics industries will usher in significant opportunities for broader development,” said Li Wei, general manager of the marketing department at Xi’an Xianyang International Airport Co., Ltd. By 2020, the airport said it hopes to boost its annual cargo and mail handle to 500,000 tonnes – more than double its 2016 handle of 233,000 tonnes.

Boosting air cargo volumes will require the airport to invest heavily in new infrastructure. Li says XIY plans to develop a 600,000-square-meter space east of the airport into a “Belt and Road” air cargo hub, where China Northwest would operate. “The integrated transport hub will include two new runways and 107 parking positions, to further expand the cargo area.” Expanding cool-chain logistics facilities and improving customs clearances processes will increase the appeal of launching international freighter flights from the airport, Li added.