CAAC approves the launch of CDI Cargo Airlines

The Civil Aviation Administration of China (CAAC) has approved the launch of Hangzhou-based CDI Cargo Airlines. It will initially acquire one Boeing 737-800 with plans to introduce two more of the type.

The new cargo venture has a registered capital of CNY200 million ($31.8 million). Huixiang Industrial Investment Co., which invested CNY102 million, has a 51% ownership. Haofu Group holds a 24% stake, Asia Yingsheng Investment Co. holds 15% and Caulfield Investment Co. holds the remaining 10%.

The CAAC appears to be softening its tough stance on restricting approval of new entrants (ATW Daily News, March 1, 2011). In 2007, the CAAC said it would not approve any new start-ups until 2010 except cargo carriers, West China-based carriers or those that operate domestically produced regional aircraft because there were too many privately run domestic carriers after restrictions were loosened in 2004.