China’s Air China Group, one of the country’s three major aviation conglomerates, is set to expand its international logistics operations. At the Global Sustainable Transport Forum, Air China Group’s Vice President and Party Member Secretary, Yan Fei, announced that the group will implement an international logistics expansion project, focusing on establishing overseas logistics hubs in key international regions.
According to Yan Fei, the aviation industry plays a crucial role in the global trade network, and enhancing the resilience and safety of the aviation logistics supply chain is essential. He cited data from the International Air Transport Association (IATA) indicating that while only 2% of global freight is transported by air, it accounts for 35% of global trade value. Every 1% increase in air connectivity can boost trade by 6%.
Air China’s logistics expansion is part of a broader strategy to strengthen its global footprint. The company’s international logistics hubs will serve as critical nodes in the global supply chain, providing end-to-end solutions to its clients. We aim to build a more resilient and secure global logistics network, which is essential for our clients and the global economy, Yan Fei stated.
This move aligns with the growing trend of Chinese companies expanding their international presence. According to the report by Caixin, several Chinese companies are increasingly focusing on international markets. For instance, the new three greats and e-commerce are seen as potential drivers for growth. Additionally, more Chinese companies are exploring opportunities in emerging markets such as Mexico and Brazil.
Air China’s logistics expansion also reflects the growing importance of air freight in global trade. As a major player in the aviation industry, Air China’s foray into international logistics is expected to strengthen its competitive edge and enhance its market position. The company’s subsidiary, China Cargo Airlines (CCA), is already a significant player in the global air cargo market, handling a substantial portion of China’s international freight.
The logistics expansion project is part of Air China’s broader strategy to diversify its business and reduce reliance on traditional passenger services. The company has already made significant strides in expanding its cargo operations, with its first domestically produced C919 aircraft joining its fleet in recent weeks. This marks a significant milestone in the company’s efforts to modernize its fleet and enhance its capabilities in the aviation and logistics sectors.
In conclusion, Air China’s logistics expansion is a strategic move that aims to enhance its global competitiveness and provide more comprehensive services to its clients. As China continues to strengthen its international economic ties, companies like Air China are well-positioned to capitalize on the opportunities presented by the global market.
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