"Not enough" - the current China air freight industry overall situation

China's manufacturing significant growth, prompting air freight carriers scrambling to develop its business in China. However, this may become a business scale expansion case of too much, too soon.
Two years ago, from nanjing or Shanghai air cargo to Europe, as high as $4 per kilogram of freight, Now the price of about $2.50. Nanjing lukou international airport, deputy general manager XuYong said: "in this business still money to earn the airlines, very rare."
As fleet expansion rate continues to exceed demand, carriers are adding congestion problems at some Chinese airports. XuYong warns: "we planes now number is really too much."
The Dutch airlines Martinair vice President frank nigel DE Jong at (Frankde Jong), said China air cargo exports is growing by about 10 percent every year, and plane cargo transport capacity growth of about 25%.
In Asia, about half of the goods transported is put in the belly of regular passenger flights. For example, in passenger Airlines, Korean air (Korean Airlines) has the world's largest freight business, the 28% of income from air freight.
In the United States, most air freight business by UPS and FedEx (FedEx) headed by professional freight company responsible. The Chinese government has recently granted greater to the two companies access restrictions.
Credit Suisse) Credit Suisse (analysts Peter shilton (Peter Hilton) said: "American companies to China within the system can inject more capacity, and undertakes by the Asia airlines has swept the freight business."
The Chinese government has stepped up its efforts to develop a domestic air freight industry, encourage domestic airlines and more experienced western freight companies. But until recently, the Chinese government had focused almost exclusively on overhauling and expanding the passenger airline industry.
A Hong Kong banker says: "from a political point of view, transport of passengers rather than goods more prestige, but the government has already realized, freight on export-led manufacturing sector is very important."
Exported directly from the Chinese mainland, growing proportion of air freight, not only on the carriers influence, but also make such as Singapore and Hong Kong air freight center feel anxious.
Headquartered in Hong Kong's Cathay Pacific Cathay Pacific (found its freight business in 4q07. Cathay Pacific freight department assistant manager William Lo, said China (mainland) from the fierce competition, means that its earnings growth this year may be 1% to 2%, compared with last year's growth of 3% to 6%.
Nigel DE jong at Martinair says: "now Hong Kong that no longer make anything, instead, we see the surrounding these Martinair says is developing. Obviously they're partake."
Shenzhen airport is developing rapidly as a cargo hub, make people will the goods to the near Hong Kong airport motivation decreased.
Jadeite Jade Cargo airline () is the shenzhen aviation with Lufthansa aviation (Lufthansa) established a joint venture enterprise, one year ago, began operating since then has been growing at every three months increase a Boeing 747 Boeing) (the speed of expanding fleet.
Hisui aviation marketing director Todd Haynes Hilbert (Hilbrecht) expected Todd, the airlines in 2008 will be realize the profit. He said: "the past few months (our business) slightly slowed, but not as to cause business losses."
Although from nanjing and other mainland airports the cost of shipping goods greatly decreased, but continue to make fuel prices, by ship large cargo more attractive than air.
One industry executives said: "the prices can certainly offset transportation time the impact of the problem." This month oil $78.77 a barrel in the name of the historic highs.
Motonari Chiaki is American airlines Cargo Polar Air the business development manager. The company operates the week from Beijing and Shanghai port of 14 times flights.
He said: "I don't think many people are making money out of China right now. We still in money, but more and more hard."