Grandstar Cargo to be liquidated
Published: May 25, 2012
Grandstar Cargo International Airlines (GD), the joint venture launched by Sinotrans Air Transportation Development Co. and Korean Air (KE) (ATW Daily News, June 30, 2008), is expected to be liquidated due to continuous operating losses.
According to a company insider, the cargo carrier has a total debt of CNY380 million ($ 59.5 million).
Early this year, GD suspended operations while Sinotrans and KE looked for investors to takeover, to no avail.
Other Chinese cargo carriers are also facing troubles due to a cargo recession in the domestic market. Jade Cargo International—a Lufthansa Cargo (LHC)/Shenzhen Airlines (ZH) joint venture that temporarily suspended operations in March—has signed a letter of intent with China’s UniTop Group to restructure the troubled carrier (ATW Daily News, March 2).
According to the Civil Aviation Administration of China (CAAC), Chinese airlines’ cargo traffic volume dipped 7.3% to 1.6 million tonnes in the first four months of this year.