- Sep 08, 2020
- Business Update
JD Joins Hands with Henan Air Cargo Company to Expand Intercontinental Network
by Martin Li
JD.com will join hands with Henan Civil Aviation Development & Investment Co., Ltd. (HNCA) to expand the intercontinental air cargo network in Europe and America. The two companies announced on September 8th at the ongoing 2020 China International Fair for Trade in Services (CIFTIS) in Beijing.
“Through this cooperation JD.com hopes to explore a new model in building the Air Silk Road and the larger cross-border air transportation infrastructure, by making use of our accumulated resources in the industrial supply chain,” said Huang Xing, vice president of JD.com and general manager of the company’s international logistics business.
The Air Silk Road is an initiative supported by the Henan provincial government to build smooth and efficient air transportation between Luxembourg and Zhengzhou, capital of Henan province. In 2014 HNCA became a shareholder of the world’s largest air cargo company Cargolux Airlines International, and started building the Air Silk Road.
Zhang Mingchao, president of HNCA, said that cooperation with a leading enterprise like JD.com will boost development of Henan’s air industry and accelerate the opening up of China’s inland provinces.
The cooperation will also extend to big data, supply chain management, Fintech and industrial finance.
At the roundtable today, Huang shared opportunities and challenges faced in the air cargo market.
“Domestic consumption is recovering and the government is focusing on speeding up employment, transportation and the supply of raw materials in key industrial chains,” Huang said. “This provides an enormous opportunity for the air cargo industry to develop.”
Huang added that the growth in the number of all-cargo aircrafts in China is below market expectations due to limited supply, underdeveloped infrastructure and high transportation costs. However, once a global logistics network of all-cargo aircraft forms, its advantages to the industry will be noticeable. Currently, there are only ten countries with a global air cargo network.