Air China Cargo looks to closer customer relations

A dual problem of skyrocketing fuel prices and excess capacty in the Chinese market has put pressure on Air China Cargo. “Fuel costs are a problem but the market is still good, so we have to balance cost and the market,” said Air China Cargo’s deputy managing director for marketing and sales, WangLei. “Airlines cannot […]


A dual problem of skyrocketing fuel prices and excess capacty in the Chinese market has put pressure on Air China Cargo. “Fuel costs are a problem but the market is still good, so we have to balance cost and the market,” said Air China Cargo’s deputy managing director for marketing and sales, WangLei.

“Airlines cannot bear the cost,” he said in reference to the fuel costs, “but we need to get market share,” he added in what was surely a veiled reference to a slashing of rates in the China air cargo market in what is a desperate bid by many carriersin order to maintain market share.

Indeed rates have slipped 3-5 per cent this year in comparison to last, Wang acknowledged, but at nearly 70 per cent overall load factors, things are still looking bright for the Chinese cargo carrier. “But carriers from the Middle East have beenputting a lot of capacity in,” he noted.

The strategy for Air China Cargo will be to work at developing a closer relationship with the customers of its home territory, he said. The carrier has a number of key customers that are operating with Chinese partners in joint ventures, such as Samsung and Nokia, he added. “A lot of people in these companies are Chinese and we will build relationshipswith them.”