1. Teaming Up with Foreign Companies: SF Airlines and Etihad Set a New Benchmark

In September, SF Airlines signed a memorandum of understanding (MoU) with Etihad Airways in Shenzhen, witnessed by SF Holdings Chairman Wang Wei and Etihad Airways Chairman Mohamed Ali Al Shorafa. The MoU outlines the establishment of a joint venture aimed at further integrating resources and deepening cooperation in the air cargo sector, offering global customers a more comprehensive logistics solution.

Etihad Airways, one of the wealthiest airlines in the Middle East, is financially robust, with a fleet of 108 aircraft, including 50 Airbus A380s and five Boeing 777 freighters. In fact, SF Airlines began partnering with Etihad Cargo in 2023, operating international cargo routes, sharing cargo space, and enhancing their network connectivity through joint operations and resource sharing.

By July 2024, both airlines increased the frequency of cargo flights between Ezhou, Shenzhen, and Abu Dhabi, UAE, boosting China-UAE trade and advancing the Belt and Road Initiative. The partnership marks the beginning of a comprehensive strategic cooperation between SF Airlines and Etihad Cargo, focusing on aircraft capacity, flight schedule optimization, route expansion, and further integration of international business.

Wang Wei, Chairman of SF Holdings, stated, "This joint venture is a pioneering development between China and the UAE in the air cargo logistics sector. By partnering with Etihad Cargo, we are setting new standards for the industry, especially in response to the growing demand for e-commerce, airmail, and parcel delivery."

SF Airlines, the first privately owned express airline in China and the largest air cargo carrier in the country by fleet size, owes its success to its strong fleet of dedicated freighters and its "hub-and-spoke" route network centered around Ezhou Huahu Airport. Through technological innovation and service optimization, the company continues to enhance its competitiveness in the air cargo sector.

SF Airlines, founded by Shenzhen Taihai Investment Co., Ltd. and SF Express (Group) Co., Ltd., was approved for establishment by the Civil Aviation Administration of China (CAAC) on February 9, 2009. Its first aircraft took off on December 31, 2009. In 2011, the CAAC Southern Regional Administration approved SF Airlines' request for equity restructuring, granting SF Express 85% ownership of SF Airlines after the restructuring.

Today, SF Airlines operates a global fleet of 99 freighters, 87 of which are self-owned, including 17 Boeing B737 series planes (14 B737-300Fs and 3 B737-400Fs), four Boeing B747-400ERFs, 43 Boeing B757-200Fs, and 21 Boeing B767-300Fs. It operates 160 routes, 70 of which are international, offering fast and efficient air logistics services to global customers.

In 2022, Ezhou Huahu Airport, Asia's first dedicated cargo hub, became operational, marking a significant milestone in SF’s global air cargo network. In May 2024, the CAAC approved renaming Ezhou Huahu Airport as Ezhou Huahu International Airport. By July, the airport had launched 24 international cargo routes, becoming the top air cargo hub in central China. With a target of 245 million tons of cargo throughput and 10 international cargo routes by 2025, the airport aims to become a global air cargo hub.

The international market has been a key growth driver for SF, including strategic investments in Kerry Logistics, the U.S. freight logistics provider Flexport, and 100% equity acquisitions of DHL’s Hong Kong and Beijing subsidiaries.

SF’s August financial report showed continued growth, with total revenue reaching RMB 22.98 billion, a 13.36% year-on-year increase. Revenue from its supply chain and international business grew 27.16% to RMB 6.63 billion, driven by a strong international expansion.

By revenue, SF has become Asia’s largest and the world’s fourth-largest integrated logistics service provider, closely following UPS, DHL, and FedEx.

2. China Post Airlines Expands with New Aviation Hub

As Ezhou Huahu International Airport rises, Zhengzhou is not backing down. In August, the Henan provincial government and China Post Group signed a cooperation agreement to launch a China Post aviation hub project in Zhengzhou. This project, with a total investment exceeding RMB 10 billion, will include key facilities such as an air transport center and a comprehensive aviation support base.

China Post Airlines, with 87 aircraft, is the second-largest air cargo carrier in China, second only to SF Airlines. Based in Nanjing, China Post has a vast air logistics network. The new hub in Zhengzhou will create a dual-hub strategy with Nanjing, marking a major expansion of China Post’s air cargo operations.

Zhengzhou Airport is being positioned as a critical node in connecting domestic and international markets. The project aims to make Zhengzhou a globally influential logistics hub, optimizing the domestic logistics network and expanding its reach in international logistics.

China Post Airlines plans to further expand its fleet, especially by purchasing more Boeing 737-800 freighters. In addition to increasing its international routes, China Post has launched several new routes, such as Fuzhou to Osaka, Yiwu to Manila, and Nanjing to Luxembourg.

Through a series of strategic moves, China Post aims to cement its position in the global air cargo market and become an industry leader.

Conclusion

With the growth of global trade, air cargo is playing an increasingly important role in China’s aviation sector. SF Airlines’ collaboration with Etihad and the rise of Ezhou Huahu International Airport have positioned it as a leader in central China’s air cargo hub network. Meanwhile, China Post’s investment in Zhengzhou and its expanding international network suggest an intensifying competition between the top two air cargo players in China.

Although Chinese air cargo companies still face challenges from global giants like UPS, DHL, and FedEx, domestic leaders such as SF Airlines and China Post, along with other logistics companies like JD Logistics and YTO Express, are working hard to seize opportunities in the evolving global market.

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Source: Cross-border eCommerce and Logistics Baixiaosheng