CHINA: China Southern to buy six 777Fs

China Southern Airlines (CZ) announced this week that it has reached an agreement with Boeing to purchase six B777 freighters valued at US$1.58 billion based on list prices. China Southern said the six freighters will be delivered between 2013 and 2015 and “will facilitate the optimisation of the structure of the group’s cargo business, freighter […]


China Southern Airlines (CZ) announced this week that it has reached an agreement with Boeing to purchase six B777 freighters valued at US$1.58 billion based on list prices. China Southern said the six freighters will be delivered between 2013 and 2015 and “will facilitate the optimisation of the structure of the group’s cargo business, freighter fleet and cargo traffic capacity.” The substantial maindeck capacity addition will enable CZ to boost its cargo capacity 8.4 per cent, it said. The carrier also recently shifted its cargo hub out of Guangzhou, to Shanghai. Rival carrier China Eastern Airlines has also made recent moves to boost it cargo business through the re-launch of China Cargo Airlines, which is based on the assets of China Eastern’s earlier subsidiaries China Cargo Airlines, Shanghai Airlines Cargo International and Great Wall Airlines. The new China Cargo Airlines has a registered capital of CNY3 billion (US$463 million) with China Eastern CEA holding 51 per cent, China Ocean Shipping Co. owns 17 per cent, Eva Airways controls 16 per cent and Singapore Cargo Airlines has 16 per cent. Based in Shanghai, China Cargo Airlines will operate 18 freighters comprising five 747-400Fs, four 777Fs, four MD-11Fs, two 757-200Fs and three Airbus A300-600Fs, with two new B777Fs scheduled to be introduced this year. Meanwhile, Air China and Cathay Pacific Airways formally launched their Shanghai-based joint venture cargo operation Air China Cargo in May, based out of Shanghai.