The following report is a brief extract from a air cargo and carrier profile series.

1. China Air Carrier ProfilesChina Intelligence OnlineInforming business in China Table of Contents TOC
1-3
1Table of Contents PAGEREF _Toc243725883 2 2Air China PAGEREF _Toc243725884 3 2.1.1Brief Profile PAGEREF _Toc243725885 4 2.1.2Ownership PAGEREF _Toc243725886 4 2.1.3Finances PAGEREF _Toc243725887 4 2.1.4Operations PAGEREF _Toc243725888 5 2.2China Eastern Airlines Corporation Limited PAGEREF _Toc243725889 9 2.2.1Brief Profile PAGEREF _Toc243725890 9 2.2.2Ownership PAGEREF _Toc243725891 10 2.2.3Finances PAGEREF _Toc243725892 10 2.2.4Operations PAGEREF _Toc243725893 11 2.3China Southern Airlines PAGEREF _Toc243725894 14 2.3.1Brief Profile PAGEREF _Toc243725895 14 2.3.2Ownership PAGEREF _Toc243725896 14 2.3.3Finances PAGEREF _Toc243725897 14 2.3.4Operations PAGEREF _Toc243725898 15 2.4Jade Cargo International PAGEREF _Toc243725899 17 2.4.1Brief Profile PAGEREF _Toc243725900 17 2.4.2Ownership PAGEREF _Toc243725901 17 2.4.3Finances PAGEREF _Toc243725902 17 2.4.4Operations PAGEREF _Toc243725903 18 2.5Great Wall Airlines PAGEREF _Toc243725904 19 2.5.1Brief Profile PAGEREF _Toc243725905 19 2.5.2Ownership PAGEREF _Toc243725906 19 2.5.3Finances PAGEREF _Toc243725907 19 2.5.4Operations PAGEREF _Toc243725908 19 2.6Shanghai Airlines Cargo International PAGEREF _Toc243725909 21 2.6.1Brief Profile PAGEREF _Toc243725910 21 2.6.2Ownership PAGEREF _Toc243725911 21 2.6.3Financial PAGEREF _Toc243725912 21 2.6.4Operations PAGEREF _Toc243725913 22 2.7HNA Yangtze River Express Airlines PAGEREF _Toc243725914 23 2.7.1Brief Profile PAGEREF _Toc243725915 23 2.7.2Ownership PAGEREF _Toc243725916 23 2.7.3Financials PAGEREF _Toc243725917 24 2.7.4Operations PAGEREF _Toc243725918 24 3Disclaimer PAGEREF _Toc243725919 24 Air China Air China Address9/F, Blue Sky Mansion28 Tianzhu RoadZone A, Tianzhu Airport Industrial ZoneShunyi DistrictBeijingChinaPhone+86 10 8449 2549Fax+86 10 8449 2550E-mailzhangxna@mail.airchina.com.cnWebwww.airchina.com.cn Air China Cargo AddressAir China Cargo Building, No.46 Xiaoyun Rd, Chao Yang District, Beijing, 100027,ChinaPhone+86 10 6459 9211Fax+86 10 64614878E-mailN/AWebwww.airchina.com.cn Brief Profile Of the airlines operating in China, Air China and its subsidiary Air China Cargo command a dominant position in the market. Though publicly traded the Chinese government maintains a majority stake in the company through the China National Aviation Group. It offers services to some 80 destinations domestically and internationally serves nearly 40 destinations in 30 other countries. Its major hubs are in Beijing, Shanghai, and Chengdu and it maintains a fleet of over 220 planes. Air China became a member of the Star Alliance on 12 December 2007. Ownership Air China was incorporated as a joint stock limited company on September 30th 2004. The Company's H shares are listed on the Hong Kong Stock Exchange and London Stock Exchange while the Company's A share are listed on the Shanghai Stock Exchange. The company's ultimate holding company is China National Aviation Holding Company (CNAHC), a state owned enterprise under supervision of the state council. As of December 31st 2007, the CNAHC held 40% of the company's state legal person shares and A shares and China National Aviation Corporation (Group) Limited (CNAC) held 100% of the companies outstanding non-H foreign shares. As of April this year, CNAHC owned 57.71%, Cathay Pacific owns 18.09%, and 24.2% is publicly traded. Air Cargo China is a subsidiary of Air China, which owns a 51% stake in the Cargo Airline. Significant shares are also held by Capital Airports Holding Company, which holds 24% equity interest. Additionally, Air China also directly or indirectly holds interests in the following airlines: Air Macau (51%), Shandong Airlines (22.8%), Shenzhen Airlines (25%) and Cathay Pacific Airways (17.5%). Finances Air China Main Business20032004200520062007Revenues (RMB mn)24641.41 33520.76 38290.97 44936.61 51330.54 Operating Profits (RMB mn)2284.26 4485.25 3673.82 2517.70 3834.13 Source: Air China Revenue Contribution By Geographical And Business Segment(in RMB ’000)2007 AmountPercentage 2006 AmountPercentageEurope7,616,37014.84%6,203,53613.81%Air cargo4,085,4567.96%4,041,2278.99% Source: Air China In 2007, Air China’s cargo and mail revenue was RMB 4.085bn, representing an increase of RMB 44mn or 1.09% compared with 2006. Air Cargo Revenue20072006ChangeAvailable freight tonne km (million)6,868.16,404.47.24%Load factor (%)56.4354.302.13%Cargo yield per tonne kilometre (RMB )1.982.16(8.33%)Source: Air China Air Cargo Revenue Contributed By Geographical Segment(in RMB ’000)2007Percentage of total2006Percentage of totalPercentageChangeMainland China603,04814.76%486,77112.05%23.89%Hong Kong and Macau560,12313.71%531,29913.15%5.43%Europe1,178,55728.85%1,057,73226.17%11.42%North America997,89024.43%1,020,80125.26%(2.24%)Japan and Korea301,6437.38%365,8629.05%(17.55%)Other Asia Pacific regions444,19510.87%578,76214.32%(23.25%)Total4,085,456100%4,041,227100%1.09%Source: Air China Operations Hubs and NetworkSource: Air China Air China has progressed in developing a western regional hub in Chengdu, and launched Shanghai as a new international gateway. Beijing, however, remains the most important international gateways and domestic transit hubs for the Company in China. Recently, it concentrated traffic at the Beijing hub in the following ways: launching new international routes to Sydney, Sapporo, and Athens introducing new domestic routes to Zhuhai, Yichang, Xuzhou realigning the structure of routes destined for Macau, Los Angeles and Ho Chi Minh City increasing the flight frequency of key routes serving Europe and America (e.g. the flight frequency to Frankfurt was increased to 21 flights per week). As a result, the number of transit passengers served by the Beijing hub totalled 3.51mn in 2007 and accounted for 17% of the total number of passengers carried. The same year 2007, the number of aircraft serving Beijing has reached 132, representing 60% of the carriers’ total capacity. The company has a long history of operation in Shanghai and provides domestic and international passenger and cargo services at both Shanghai Hongqiao Airport and Shanghai Pudong International Airport. As Shanghai is growing into an important hub in the global cargo network with companies like UPS choosing Pudong as their Hub, the company decided to accelerate development of its Shanghai Hub and it now accounts for 12.3% of its market share. New routes between Shanghai and major cities in Japan and Korea were recently launched offering connecting services to with domestic routes and those destined for Europe and America. It also has a western hub in Chengdu district from which it actively develops its hinterland coverage. Chengdu accounts for 36% of its market share. In southwestern China main routes within the region include Chengdu-Lhasa and Chengdu-Jiuzhai. Directing traffic to the south, it increased the flight frequency of routes from Beijing, Tianjin, Chengdu and other cities to Hong Kong and developed key routes throughout Southern Asia and South East Asia. It has established international routes departing from Beijing to Ho Chi Minh City, Delhi, Madrid, Sao Paulo, Saipan and Athens and from Tianjin and Dalian to Seoul, resulting in adjustments in the routes destined for San Francisco. In 2007, it set up a code sharing with Lufthansa on routes from Frankfurt and Munich to Geneva, Basel and Zurich, and with United Airlines on routes from Beijing to Washington D.C., and from Denver to Los Angeles or San Francisco. As at 30 June 2007, Air China and Air China Cargo had a total of 271 routes, among which, 190 were domestic routes, 75 international routes, and 6 regional routes. The Company's flights connect 26 countries and regions, including 39 international cities and 77 domestic cities. 2007 FleetType of AircraftOwnedFinance leasedOwned leasedTotalPassenger Aircraft985955212Airbus2529660BoeingFreighters7353004931528Total1035958220Source: Air China The company currently operates a fleet of 234 aircraft in a network that extends across the globe. As last reported in 2007, Air China and Air China Cargos’ fleet increased by 13 aircraft (29 aircraft were introduced and 16 aircraft were retired). It operated a fleet of 220 aircraft in total, with the average age of aircraft reduced to 7.3 years (compared to 7.6 years in 2006). Cargo In 2007, Air China recorded total traffic turnover of 10.17bn tonne-km and handled 1.104mn tonnes of cargo and mail, representing an increase of 10.9%, and 8.3% respectively as compared with the previous year. The Group's total revenue from business operations (including air traffic revenue and other operating revenue) amounted to RMB 51.33bn and profit before tax amounted to RMB 5.606bn, representing an increase of 14.23% and 42.68% respectively year-on-year. International Cargo Transport Ltd. of China The company is a joint-venture by Air China, Citic Pacific Ltd., and Beijing Capital International Airport, was established on March 3rd 2003. It has total assets of RMB 3.5bn and registered capital of RMB 2.2bn with Air China holding 51% as the controlling shareholder. It has a fleet of 4 Boeing 747-200 freighters, 8 Boeing 747-400 passenger-cargo mixed aircraft, and 60 aircraft that have enough capacity for cargo such as the Boeing 747, 767 and Airbus 340. The company has the management rights for handling international cargo air routes from Beijing and Shanghai to Los Angeles, San Francisco, New York, Chicago, Portland, Frankfurt, Paris and London. It will receive a new Boeing 747-400 freighter this year and 3 new TU-204 freighters next year. Air Cargo China Air China Cargo: Traffic 2005 20062007 Cargos and mails carried (tonnes) 884,908.1 1,019,359.31,103,914.0 Source: Air China Air China Cargo: TurnoverFY2007 FY2006 YOYAFTK (Millions)2,5322,379 6.44%RTK (Millions)1,8131,61112.50%Tonnage Carried (Thousands) 27423815.26%Load Factor (%)71.5967.743.85% With 1,818 employees, Air Cargo China operates dedicated cargo flights on routes from Shanghai and Beijing to five major US cities, as well as Frankfurt, London, and Paris. The airline also manages cargo services flown over a comprehensive route network in the cargo holds of around 60 Air China passenger aircraft. The dedicated cargo fleet consists of 3 Boeing 747-200F, 5 Boeing 747-400F, and 5 Tupolev Tu-204-120CE freighters. In 2007, Air China Cargo capacity and the belly-hold space in its parent company’s passenger aircraft increased by 12.30% the previous year to 3,690mn RFTKs. Cargo and mail carried increased by 10.60% to 934,000 tonnes while cargo and mail load factor increased by 2.1% to reach 55.80%. Available freight tonne-km increased by 8.20% to 6,620mn and cargo yield per tonne-km decreased by 7.20% to RMB 1.80. China Eastern Airlines Corporation Limited China Eastern Airlines Address66 Airport Street, Pudong International Airport, Shanghai, ChinaPhone(86-21) 6268 6268 Fax(86-21) 6268 6116 E-mailir@ce-air.com Webwww.ce-air.com China Cargo Airlines AddressRoom 211, 2/F, China Cargo Building, Konggang No 6 Road, HongqiaoAirport, Changning District, Shanghai, ChinaPhone(86-21) 62682800 Fax(86-21) 6268 6116 E-mailzhangchi@cc-air.comWebwww.cc-air.com Brief Profile China Eastern Airlines was incorporated on the 14th April 1995 when it was split off from CAAC. The company and its subsidiaries are engaged in aviation operations for passenger services, cargo, and mail delivery, and other extended transport services. China Eastern currently serves 138 domestic and foreign cities with 467 routes, of which 351 were domestic routes, 18 were Hong Kong routes (including one cargo route) and 98 were international routes (including 14 international cargo routes) China Cargo Airlines (CCA) was jointly founded by China Eastern Airlines and COSCO Group on July 30th 1998, and became the first specialized air cargo company in China. China Eastern owns a 70% share of CCA and COSCO holds 30%. With its operating bases located in Shanghai Hongqiao Airport and Shanghai Pudong International Airport, China Cargo Airlines provides cargo air services to major cities in China including Beijing, Qingdao, Xiamen, and over 10 international destinations including London, New York, Chicago, Los Angeles, Paris, Tokyo, Singapore, Bangkok, and others. CCA is responsible for partial belly hold cargo transport on China Eastern Passenger flights. Ownership China Eastern Air Holdings currently holds approximately 59.7% of the Company’s equity interests on behalf of the PRC Government. Shares of the company are publicly traded on the Shanghai Stock Exchange, the Stock Exchange of Hong Kong, and the New York Stock Exchange. Finances Selected Operating Data 20032004200520062007Revenue passenger-km (millions)18,002.727,580.836,380.650,271.957,182.6Revenue tonne-km (millions)2,907.74,340.75,395.26,931.07,713.9Revenue passenger tonne-km (millions)1,611.12,466.03,243.74,487.05,099.8Revenue freight tonne-km (millions)1,296.61,874.72,151.52,444.02,614.1Cargo yield (cargo revenue/cargo tonne-km)2.462.362.312.32.1Cargo and Mail Traffic Revenues (RMB mn)2,7312,8433,114Cargo and Mail Total Revenues3,3063,5524,015Source: China Eastern China Eastern Main Business20032004200520062007Revenues (RMB mn)14,47021386274543763442521Profits (RMB mn)66123214-299139Source: China Eastern The company's total revenues, excluding revenues generated form cargo carried by passenger flights, increased by 13.0% from RMB 3,552mn in 2006 to RMB 4,015mn in 2007. It attributed the increase primarily to an increase in traffic as a result of the expansion of its capacity. Cargo and mail yield decreased from RMB 2.30 in 2006 to RMB 2.10 in 2007 per cargo tonne-km due to fare decreases resulting from intensified market competition. Traffic revenues for cargo and mail business segment increased by RMB 270mn, or 9.5%, from RMB 2,843mn in 2006 to RMB 3,114mn in 2007, due to increases in traffic revenues generated from international and Hong Kong regional services. Domestic cargo and mail traffic revenues (excluding Hong Kong), accounted for 10.8% of total cargo and mail traffic revenues in 2007, increasing by 17.2% from RMB 506mn in 2006 to RMB 593mn in 2007. The company attributed this to an increase in domestic cargo and mail traffic, as well as an increase in service charges. Operations China Eastern is headquartered in Shanghai and has 51,600 employees. There are 10 branches based in Beijing, Xi’an, Yunnan, Gansu, Anhui, Shandong, Jiangxi, Ningbo, Hebei and Shanxi, and it operates four subsidiaries: Jiangsu Airlines, Wuhan Airlines, China Cargo Airlines and Shanghai Eastern Logistics Co., Ltd. The Company also set up offices abroad around the world in London, Paris, Los Angeles, Vancouver, Sydney, Tokyo, Singapore, and Kuala Lumpur. At the end of 2007, China Eastern operated 197 passenger planes and 11 jet freighters. In the same year, the Company added a total of 20 aircraft to its fleet, including the purchase of three EMB145 aircraft and the finance lease of two A319 aircraft, two A320 aircraft, four A321 aircraft, one A330-200 aircraft, five A330-300 aircraft, two B737-700 aircraft and one B747F freighter. In February, of this year, the company took delivery of the third of three A300-600 converted Freighters from EADS. The company currently operates 220 planes and plans to expand the fleet to 322 in 2010. In terms of its passenger network, the company introduced a number of new routes in 2007 including Shanghai-Maldives-Johannesburg, Hongqiao-Haneda, Beijing-Dalian-Okayama, Shanghai-Seoul-Bangkok, and Hongqiao-Gimpo. Also, China Eastern has been assigned by the Shanghai 2010 World Expo as the only designated air carrier. In early August 2008, China Eastern announced that it will invest RMB 50mn to establish a wholly owed subsidiary company -- Eastern Business Aviation Service Co., Ltd. to focus on high end clients. Target clients will be political VIPs, singers, sports and movie stars. All the documents of setting up this new company have recently been handed in the State Industry and Commerce Bureau to begin the registration process. Cargo In July 1998, China Eastern and China Ocean Shipping (Group) Company jointly established China Cargo Airlines to specialize in the air freight business. The total investment in the joint venture was approximately RMB 350mn, representing 70% of the equity interest of China Cargo Airlines. In 2005, it established sales centres for cargo services in northern China, southern China, south-eastern China, and overseas. The company has domestic cargo sales offices in Beijing, Shanghai, Xiamen and other major transport hubs in China, and international cargo sales offices in Hong Kong, London, Tokyo, Osaka, Nagoya, Seoul, Los Angeles, Dallas, Seattle, Chicago, San Francisco, New York, Anchorage, Paris, Luxembourg and other overseas flight destinations. China Cargo Airlines maintains 27 cargo routes with dedicated freight aircraft as well as cargo space on China Eastern's passenger aircraft. Their most significant cargo and mail routes are international. Cargo Aircraft Total Numberof Aircraft Number of Aircraft Owned and under Finance Lease Aircraft under Operating Lease Average age (in years)(1MD-11F66—16.0A300F22—19.0B747F3211.5Total Fleet22314776— China Cargo Airlines has a fleet of 11 cargo aircraft, including six MD11F, one B747-200F, two B747-400ERF and two A300F. The total cargo throughput of the company is 283,443 tonnes, accounting for 9.6% of the full-cargo aircraft transport market in Shanghai. The development of cargo operations is an important part of the Company’s growth strategy. Capacity and Traffic 20032004200520062007Capacity: ATK (millions)4,774.57,071.28,751.511,065.612,085.9ASK (millions)29,780.041,599.152,427.970,468.377,717.2AFTK (millions)2,094.33,327.34,033.04,723.45,091.3Traffic: Km flown (millions)176.5242.8287.7434.6478.1Hours flown (thousands)259.4360.4467.8678.3756.0Weight of cargo carried (millions of kilograms)459.8663.6775.5893.2940.1 In 2007, total cargo and mail traffic (in RFTKs) increased by 7.0% from 2,444mn freight tonne-km in 2006 to 2,614mn freight tonne-km in 2007. Average yield for the passenger business segment remained at RMB 0.61 per passenger-km, whereas average yields for the cargo and mail business segment decreased by 8.7% from RMB 2.3 per tonne-km in 2006 to RMB 2.1 per tonne-km in 2007. In January of 2008, it reported total cargo volume of 81,550, year on year growth of 21.5%. CCA's 2015 goal is to expand its route network to 11 domestic destinations and 19 foreign destinations, including London, Milan, Dubai, Bombay, Dallas, and Atlanta. In conjunction with this the company plans to increase its fleet to 28 full-cargo aircraft before that time. Cargo and Mail Operations 2005 2006 2007Cargo and Mail Traffic (in RFTKs) (millions)2,1522,4442,614Domestic410575609Hong Kong135141118International1,6071,7281,888 Cargo and Mail Capacity (in AFTKs) (millions)4,033 4,723 5,091 Domestic713 1,060 1,228 Hong Kong314 351 274 International3,005 3,313 3,589 Cargo and Mail Yield (RMB )2.31 2.302.10Domestic0.85 0.870.98Hong Kong4.76 5.244.49International2.482.542.31 Cargo and Mail Load Factor (%)53.3551.7451.34Domestic57.4154.2449.55Hong Kong42.8840.2442.91International53.4852.1652.60 Compared to 2006, domestic cargo and mail traffic (as measured in RFTKs) increased by 5.9%, from 575mn in 2006 to 609mn in 2007. The weight of cargo and mail carried on domestic routes increased by 5.7%, from 439mn kilograms in 2006 to 464mn kilograms in 2007. Freight tonne-km yield for domestic routes increased from RMB 0.87 per tonne-km to RMB 0.98 per tonne-km. China Southern Airlines Contact Info AddressNo. 278 Jichang Road, Guangzhou, GuangdongPhone86 20 8612 4736 / 86 20 8612 4462Fax86 20 8665 9040E-mailwebmaster@csair.com Webhttp://www.csair.com Brief Profile China Southern Airlines is China's largest airline company in terms of its owned fleet, route network, and annual passenger transport volume. It provides passenger transport, and cargo and postal services in Mainland China, Hong Kong, Macao, and international destinations. From its hubs in Guangzhou and Beijing, the company's network includes: 841 destinations in 162 countries in Asia, Europe, America, Australia, and Africa. The cargo division was established on November 20th 2001. Different from the other two big competitors Air China and China Eastern, China Southern does not have a separated cargo subsidiary. In 2005, the company was the first to land a mainland plane in Taiwan in 56 years. Ownership China Southern is a publicly traded company on the Shanghai Stock Exchange, Hong Kong Stock Exchange, and New York Stock Exchange, but the state owned China Southern Air Holding Company (CCSAHC) still retains a 50.3% ownership. Finances China Southern Main Business2004200520062007Revenues(million Yuan)23974382934621954502Profits (million Yuan)909- 1, 3056451619Cargo and Mail RMB (million)3,5383,697 China Southern's stated aim is to increase the percentage of its revenue derived from international operations from the current 19% to 25%-30% in the next five years. In 2007, the company's operating revenue increased by RMB 8,283mn to reach RMB 54,502mn, a year-on-year increase of 17.9%. For the same period, operating expenses increased from RMB 45,907mn in 2006 to RMB 53,013mn in 2007. As a result of improved passenger load factor and average yield, operating profit was increased from RMB 645mn in 2006 to RMB 1,619mn in 2007. The Group’s net non-operating income was RMB 1,304mn as compared to net non-operating expenses of RMB 288mn in 2006. In 2007, cargo and mail revenue accounted for 6.9% of the companies total traffic revenue. It reached an increase of 4.5% over the previous year to reach RMB 3,697mn. In the first half of 2008, cargo and mail revenue was RMB 1,851mn, an increase of 9.3% from the same period last year. Cargo and mail revenue accounted for 7.1% of total traffic revenue. On 14 August 2007, the company acquired 51% equity interest in Nan Lung International Freight from its parent company CSAHC for RMB 58mn. Operations China Southern is headquartered in Guangzhou and has 13 branches in Xinjiang, Shenyang, Beijing, Shenzhen, Hainan, Heilongjiang, Jilin, Dalian, Henan, Hubei, Hunan, Guangxi and Zhuhai. Five subsidiaries include Xiamen Airlines Limited, Shantou Airlines, Zhuhai Aviation, Chongqing Airline and Guizhou Airlines. The company also set up the air bases in Shanghai and Xi'an, and 17 division offices in Chengdu, Hangzhou, Nanjing and other major cities around China. It operates 49 overseas offices in cities such as Tokyo, Paris, Los Angeles, Sydney, Lagos, and others. In 2007, China Southern opened 10 international routes originating in Guangzhou and 8 domestic routes originating in Beijing. These 10 international routes serve neighbouring countries in Southeast Asia including Sendai, Rangoon, Angkor Wat, and others. In September 2008, according to CAAC's 2008-2009 Long-distance International Routes Preliminary Distribution Plan, China Southern gained the approval to open Beijing-London, Beijing-New York and Beijing-Detroit routes. The Company now has 45,474 employees and a fleet of 332 aircraft, including Boeing 737, 747, 757, 777 series, Airbus 320, 300,330 series, MD 82 and 90 series. At present, China Southern Airlines has two B747-400 active-duty full-cargo aircraft, six A300 aircraft are under cargo aircraft conversion. The company also booked 6 B777 full-cargo aircraft from Boeing, which will be delivered sometime between November 2008 and July 2010. Cargo Cargo and mail carried (thousand tones)20072006Change%Domestic7336748.8Hong Kong and Macau1216(25.0) International127129(1.6)Total8728196.5 As of January 2006, China Southern and China Southern Airlines Group Passenger and Cargo Agent Company Limited (“PCACL”), a wholly-owned subsidiary of CSAHC, entered into ticket agency and airfreight forwarding agreement. The agreement, valid for the term of three years, binds both parties to cooperation on businesses including air ticket sales, agency services, airfreight forwarding sales agency services, internal operation services for belly hold, and delivery services, and pallet sales agency business. In 2007, the aggregate value of ticket and cargo sales conducted through the arrangement was RMB 151.8mn. In 2007, the company looked to expand its air cargo business focusing on European and North American routes and enhanced cooperation for cargo transport with other domestic and overseas airlines. For the period, cargo and mail volume grew by 5.6% to 932mn RTKs from the same period last year, mainly due to increased traffic demand. The overall yield per cargo and mail tonne-km grew by 3.6% to reach RMB 1.99. Average yield (in traffic revenue per RTK) increased by 3.0% from RMB 5.59 in 2006 to RMB 5.76 in 2007. On June 2nd 2008, China Southern signed a Framework agreement with Air Bleu Limited (Air France) in Istanbul. The agreement is proposed to set up a joint venture focusing on the domestic and international air cargo transport and warehousing business. The Joint Venture will be established before the end of 2008, with the time limit of cooperation of 30 years. Jade Cargo International Contact Info AddressShenzhen Airlines Flight Operation Building, 6/FShenzhen Airlines Basis, Baoan International AirportShenzhen, Guangdong Province, People’s Republic of ChinaPhone+86-755-88820805Fax+86-(0)755-29910303E-mailsales@jadecargo.comWebwww.jadecargo.com Brief Profile Jade Cargo International Company Ltd. was founded in October 2004 as a joint venture between the Shenzhen Airlines, as the majority partner, and Lufthansa Cargo AG and the German development finance institute DEG. The headquarters is located in Pearl River Delta City of Shenzhen on the other side of the Chinese border from Hong Kong. The airline currently has roughly 320 employees and operates a fleet of six Boeing 747-400ERF (Extended Range Freighter) to locations in Asia and Europe. Ownership Jade Cargo International is the product of a joint venture between Shenzhen Airlines Company Limited (51%), Lufthansa Cargo AG (25%), and DEG (24%). Finances Little is known about the revenues of Jade Cargo International since neither the company itself nor JV partners have been forthcoming with figures. What is known is that the initial registered capital invested was USD 30mn split between the three companies based on their respective shares. Shenzhen Airlines, the majority shareholder has formally stated total planned investment would reach as high as USD 90mn. Operations The company has rapidly expanded its operations since its founding a few years ago. It began flights after Chinese New Year 2005 with two Airbus A300-600 freighters that initially served intra-Asian routes to countries such as India, Malaysia, Singapore and Thailand. With the delivery of its final plane on order from Boeing earlier this year, the company now operates a fleet of six Boeing 747-400ERFs, which offer services to destinations throughout Europe and Asia. At the end of 2007, it offered services to Amsterdam, Barcelona, Brescia, Frankfurt, Luxembourg and Stockholm from Shenzhen and Shanghai's Pudong airport; and from Shenzhen to Osaka and Seoul. In 2008, it began offering services to Frankfurt, bi-weekly flights from Shenzhen to Budapest and Manchester, and tri-weekly Shanghai-Brescia-Barcelona service. The company recently launched a route to Vietnam on a charter basis with plans for regularly scheduled service. The service leaves from Tianjin then flies Ho Chi Minh City and on to Shenzhen. It also has plans for an India route, which will make a circuit from Shenzhen to Shanghai to Chennai, then return to Shenzhen. The company plans to keep its hub in Shenzhen with an eye for the improving connections with Europe rather than focusing on North America or the domestic market. It had planned to launch services to Houston via Vancouver, but turned its focus to Europe after the economic downturn in the US. It will also be well served by it JV partners. Integration into Lufthansa Cargo’s network on European routes and Shenzhen Airlines network on China routes will improve the scope of its network coverage. For routes to Asia, Jade Cargo International – operating under the umbrella of the Lufthansa Cargo Group – will be able to offer non-stop flights on routes that were previously only served indirectly via the Frankfurt hub. As of January 2007, the company had completed 148mn tonne-km of air cargo turnover. Half way through the year it had already seen 67% growth in its air freight business and by the end of the year it had a turnover of upwards 50,000 tonnes in international air cargo at Shenzhen Airport, nearly half of the airports total volume for the year. For the same period, the total cargo throughput of Shenzhen airport was 616,000 tonnes, among which international air cargo throughput reached 104,000 tonnes. According to Su Xiufeng, Executive Vice President of Jade Cargo International in 2010 cargo throughput at Shenzhen Airport is expected to reach 1mn tonnes. Though the company suffered from staffing problems a year ago, it has for the most part resolved them. After taking delivery of its final two B747-400ER, the company was unable to put them in the air due to a pilot shortage. At the time the company only had 22 pilots, but benefitting from the collapse of Oasis Airlines, it now has roughly 100. During this time the company replaced its CEO with Kay Kratky former senior vice-president of transport management and flight operations of Lufthansa Cargo. Currently, the company employees 393 people. Great Wall Airlines Contact Info Address17F, POS Plaza, No. 1600 Century Avenue, Pudong New District,Shanghai, P.R.ChinaPhone+86 (21) 68766699Fax+86 (21) 68768588E-mailsales@gwairlines.com/ rsvns@gwairlines.comWebhttp://www.gwairlines.com/ Brief Profile Great Wall Airlines began operation on June 22nd 2006. It was one of the first Chinese-Foreign joint-venture all cargo airlines to commence regularly scheduled services between China and Europe. Yet, less than a month later, the airline ceased operations after the US imposed sanctions on China Great Wall Industry Corporation (GWIC), the parent company, for supplying missile related components to the Iranian military. Early the following year, the airline began service again and now flies to two domestic and seven international locations. Ownership Great Wall Airlines is currently a joint venture between Beijing Aerospace Satellite Application Corporation (BASA) (51%), a fully-owned subsidiary of China Aerospace Science & Technology Corporation (CASC), Singapore Airlines Cargo (25%), and Dahlia Investments (24%), a wholly owned subsidiary of Temasek Holdings. Finances The company has annual sales of roughly RMB 133mn and an invested capital of RMB 1bn. Operations Although headquartered in Beijing, the company operates its fleet of three B747-400 freighters from Pudong. The fleet of planes is roughly 11 years old and the company has a seven-year fleet management program agreement with Pratt & Whitney Global Service Partners to service the planes. From its hub at Shanghai's Pudong International Airport, offering dedicated freighter services, connecting China to Europe and Asia. It currently offers weekly flight services to Tianjin, Beijing, Amsterdam, Incheon, Mumbai, Chennai, Manchester, Seattle and Chicago. In 2007, after the US State Department lifted its sanctions, the company offered services to Amsterdam (6 times weekly), Incheon (6 times weekly) and Mumbai/Chennai (3 times weekly). In March of this year, it began providing services from Shanghai to Amsterdam via Tianjin five times per week and to Manchester via Tianjin and Amsterdam twice per week. In June, it began operating a Shanghai-Incheon-Seattle-Chicago route and plans to increase the frequency to six times a week beginning September 4th of this year. The company has an extended road network that provides last mile delivery in the following cities around the world. (See table) CountryCityIreland Dublin, Shannon;Britain Glasgow, Liverpool, Manchester, Derby, Birmingham, Billund, Berlin Schoenefeld Airport, Berlin Tegel Airport, London Heathrow Airport, London Stansted Airport, London Gatwick Airport, London Luton Airport;Portugal Lisbon;Spain Madrid, Barcelona, Swissport Cargo Services C/O;France Nantert, Bordeaux, Lyon, Marseille, Nice, Basel;Switzerland Zurich, Geneva;Luxembourg Luxembourg;Belgium Bruges, Antwerp, Lille, Liege Maastricht, Brussels, Ostend;Holland Rotterdam, Amsterdam, Groningen, Enschede, Eindhoven;Italy Torino, Verona, Florence, Rome;Slovenia Ljubljana;Hungary Budapest;Austria Vienna, Linz;Germany Munich, Nuremberg, Stuttgart, Frankfurt, Cologne, Dusseldorf, Bremer, Hamburg; Hannover; Berlin Tegel Airport;Czech Prague;Denmark Copenhagen;Norway Oslo;Sweden Goteborg, Malmo, Jonkoping, Stockholm;Finland Helsinki; China Urumqi, Kunming, Chengdu, Chongqing, Guilin, Guangzhou, Shenzhen, Xiamen, Fuzhou, Ningbo, Wenzhou, Hangzhou, Suzhou, Wuxi, Nanjing, Hefei, Nanchang, Changsha, Wuhan, Xi’an, Zhengzhou, Jinan, Yantai, Qingdao, Shenyang, Changchun, Harbin, Beijing, Shanghai, Tianjin;South Korea Incheon Shanghai Airlines Cargo International Contact Info Address399 Huqingping Minhang District, Shanghai, PR ChinaPhone021- 64208183Fax021- 62697067E-mailzhaofei@shanghai-aircargo.comWebhttp://www.shanghai-aircargo.com Brief Profile Based at Shanghai Pudong International Airport, Shanghai Airlines Cargo owns four MD11F, two B757-200SF and leases one B747-200F. By the year 2010, the fleet is expected to be expanded to ten large freighters. The company now operates cargo routes from Shanghai to international destinations such as America, Germany, Thailand, Japan, India, Vietnam, Hong Kong, Los Angeles, Chicago, Frankfurt, Singapore, Ho Chi Minh, Bombay, Anchorage, and Osaka. The general business scope of Shanghai Airlines Cargo includes: scheduled and chartered air freight, post, parcels, and express delivery for both international and domestic markets. Ownership The company is a joint-venture between Shanghai Airlines (55%), Concord Pacific Limited (25%), and Juniper Estate B.V.(20%). It has registered capital of RMB 206mn and is approved by the CAAC for international and domestic cargo. Shanghai Airlines Cargo International Co., Ltd. (Shanghai Airlines Cargo) was established in July 2006 as the joint investment between Shanghai Airlines (55%), Concord Pacific Limited (25%), and Juniper Estate B.V. (20%). With a registered capital of RMB 206,750,000,the company is specialized and approved by the CAAC in the field of international and domestic air cargo transport and related services. Financial In 2007, the company reported registered capital of RMB 200mn and assets of over RMB 690mn. It was a difficult year for the airline though; it reported a loss of RMB 160mn for the year, cutting into the parent companies profits by nearly RMB 90mn. Although the company saw growth in operating income during the period, this was offset by rising cost due in part to rising fuel prices. Operations Based in Shanghai Pudong International Airport, the company now operates air freight routes to Germany, Thailand, Japan, India, Vietnam, Hong Kong, Los Angeles, Chicago, Frankfurt, Singapore, Ho Chi Minh, Bombay, Anchorage, and Osaka. RouteModelShanghai-Urumqi-Frankfurt-Bombay-ShanghaiMD11FShanghai-Ho Chi Minh-Bangkok-ShanghaiB752FShanghai-Singapore-ShanghaiB752FShanghai-Osaka-ShanghaiB752FShanghai-Hong Kong-ShanghaiB752F/MD11FShanghai-Ho Chi Minh-Singapore-ShanghaiB752FShanghai- Anchorage-Los Angeles- Anchorage-ShanghaiMD11FShanghai- Anchorage-Chicago- Anchorage-ShanghaiMD11FShanghai-Hong Kong-ShanghaiB752F/MD11F As of May 2008, it owned a fleet of four MD11F, two B757-200SF, and one B747-200F (leased). By the year 2010, it has plans to expand its fleet to ten freighters. To meet increasing demand, in 2005, the company established a second cargo station beside Runway 2 of Pudong Airport. This station covers an area of 32,200 sq metres, with an annual capacity of 150,000 tonnes, and is equipped with X-ray machines, a refrigerated storage centre and parking lot for trucks. Additionally, the company plans to acquire around 200,000 sq metres near runway 3 for a cargo transport centre. According to the airport administration, cargo runway 3 will be operable in 2008 providing adjacent logistics centres. In addition to air freight and express, the company engages in associated 3PL services including: sorting, packing, dispatching, warehousing, logistic consulting, as well as personnel training for civil aviation industry. Note: metrics for cargo throughput were not available as they are aggregated with those of Shanghai Airlines HNA Yangtze River Express Airlines Contact Info Address7/F Youyou International Plaza, 76 Pujian Road, Pudongxin District, Shanghai 200127 Phone021-50395979Fax021-50398055E-mailnt_wyf.yzr@jsmail.com.cnWebhttp://www.yzr.com.cn/ Brief Profile In 2004, Yangtze River Express launched international routes to Asian, European and American cities. The company currently operates 70 domestic and international routes with over 120 flights per week, to numerous domestic and international destinations such as Singapore, Seoul, Philippines, Dhaka, Bangkok, US, Frankfurt, and Luxemburg. The company also offers freight forwarding, customs clearance, express delivery, and logistics consultancy services. It has also developed in-house supply chain modelling for its logistic centres and warehouses in Beijing, Tianjin, Shanghai, Xi’an, and Shenzhen. Ownership Established in July 2002 as the second cargo airline in the country after China Cargo Airlines, ownership of Yangtze River Express Airlines was split between Hainan Air Group (85%) with Hainan Airlines Company (5%) and Shanghai Airport Group (10%). Later in 2006, Hainan Airlines Company and Shanghai divested all of their shares whilst, Hainan sold off a significant portion, but maintained majority ownership with 51%. The remainder was purchased by China Airlines (25%), Wan Hai (6%), Yang Ming Marine Transport Corporation (12%), and China Container Express Lines (6%). In early 2007, Business Week reported that Yang Ming and China Airlines were planning to sell their stakes to Japanese airlines to expand their Japanese network, but not confirmed in any follow up reports. Financials Whilst the company does not disclose annual financial information, according the Chinese tax bureau, its operating income has increased from RMB 30mn in 2002 to RMB 1.9bn in 2007. However, it is also listed on some of the balance sheets of other publicly traded companies that hold significant stakes in the airline. In recent years, many of these companies have reported losses on their investment. For example, Yang Ming reported a loss of USD 611,552 in 2007 because of accumulated loss of Yangtze River Express. Operations From its base in Shanghai, the company currently operates six Boeing 737-300 and one Boeing 747-400F and utilizes cargo compartments of 100 aircraft from six other airlines linked with Hainan Air. According the company, its combined cargo capacity reached 700 tonnes. Its fleet is equipped to carry electronic, express delivery items, large equipment, live animals, and dangerous goods including flammables, explosives, toxic substances, infectious items, corrosives and radioactive materials. Its network has grown to include routes to 70 domestic and 10 international routes, offering 120 flights per week, covering 20 major Chinese cities and international destinations such as Singapore, Seoul, Manila, Dhaka, Bangkok, Boston, New York, Los Angeles, Moscow, Frankfurt, and Luxemburg. In June 2008, Yangtze River Express applied to CAAC for the opening of a cargo route from Shanghai Pudong-Seoul-Tianjin-Seoul-Nanjing-Shanghai Pudong with B737-300 and six flights a week. In Europe, the company offers connecting truck services from Luxemburg to: Brussels, Antwerp, Cologne, Dusseldorf, Frankfurt, Lille, Maastricht, Stuttgart, Munster, Hanover, Bremen, Hamburg, Munich, Nuremberg, Basel, Amsterdam, Zurich, Lyon, London, Milan, Copenhagen, Barcelona, Madrid, Magdeburg, Malmo, Oslo, Stockholm, and Helsinki. In America it offers trucking services on the west coast from LAX to: Phoenix, San Diego, San Francisco, Denver, El Paso, Las Vegas, Portland, Reno, Seattle, Salt Lake City, Houston, Austin, Laredo, Chicago, San Antonio, Vancouver, Edmonton, Calgary. On the west coast of the US it offers services from JFK to: Baltimore, Boston, Harrisburg, Newark Airport, Philadelphia, Providence, Norfolk Airport, Richmond, Washington, DC, Hartford, Camden, Montreal, Toronto, Cincinnati, Columbus, Pittsburgh, list, Miami, Charlotte, Cleveland, Atlanta. Yangtze River Express transported the first batch of supplies from Taiwan for the 5.12 Earthquake on May 17, 2008 through its 747 cargo aircraft. Disclaimer To the best of our knowledge, the information contained in this report is accurate. However, neither CIG nor China Intelligence Online is responsible for actions taken based on information herein. Readers are urged to exercise due diligence before any business arrangement.