Shenzhen to subsidize air cargo

Cargo airlines based at Shenzhen Airport and covering international air cargo routes will for the first year receive $100 per tonne multiplied by the total amount of outbound cargo with a ceiling of $1.25 million per aircraft. The second-year subsidy will drop to $75 per tonne, and the third year to $50.

The subsidy for carriers not based at Shenzhen but operating international routes out of the airport will be calculated on every new cargo route launched by each airline. For all out-bound cargo lifted from Shenzhen Airport, these carriers will receive a subsidy of $62.50 per tonne in the first year with a ceiling of $1 million. The subsidy will drop to 75% in the second year and 50 percent in the third.

Domestic cargo carriers based at Shenzhen and launching new mainland routes will receive a subsidy of $62.50 per tonne in the first year with a ceiling of $625,000. This subsidy will also drop to 75% in the second year and 50 percent in the third.

Tobias Lubecki, a spokesman for Shenzhen-based carrier Jade Cargo International — a joint venture started in August last year between Shenzhen Airport, Lufthansa Cargo and DEG — was cautiously optimistic about the initiative. He said, 'We have not yet received a full overview of the proposal and are working closely with Shenzhen authorities to obtain a firm commitment.'

The Pearl River delta is the center of Chinese manufacturing, the more lift available directly from Shenzhen, as opposed to routing through Hong Kong, the better. The transition of more air cargo to Shenzhen is the next logical step.

Source: 3plwire