Air Road Cargo: Xiamen's First All-Cargo Airline

With Covid firmly behind it China's air traffic stats have regained their impressive growth. It has just been reported that in 2024 passenger numbers rose by 18%, flight hours by 13.1% and flights by 9.5% to record highs, but it isn't just in the passenger arena that China's air traffic growth continues as it also has a vibrant cargo scene. One of the newest entrants into that space is Air Road Cargo, backed by the Chinese major Xiamen Airlines.

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Xiamen Airlines established the subsidiary company Air Road Logistics Co. Ltd out of its own cargo department in 2022 and in partnership with C&D Inc. and Zongteng Network. At the time they stated:

"The new company is part of our efforts to explore freight restructuring and is expected to become a modern integrated logistics service provider combining air freight, modern warehousing, supply chain management and cross-border e-commerce operations. Despite the numerous challenges facing the global aviation market, we remain steadfast in our commitment to proactively innovate and pursue change, striving to provide more efficient, convenient and reliable services for customers"

At the time Air Road Logistics utilised the belly capacity of Xiamen Airlines own fleet and the cargo fleet of the ultimate parent China Southern Airlines. This was achieved through a new Air Road Logistics Trading Platform that:

"achiev[ed] optimal efficiency, fairness and confidentiality of transactions through an advanced informatization, standardization and user-friendly operation mode."

Xiamen expanded its European transit network by opening more cargo friendly destinations such as Liege, Maastricht and Dubai. They also operated "passenger-to-cargo" flights to Australian destinations such as Perth, Sydney and Melbourne when Covid restrictions were in place. A significant part of the business appears to have been related to the transportation of plant seedlings.

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By the end of 2023 Air Road Logistics had opened over 400 domestic and international air routes. The company had handled more than 400,000 tons of cargo and mail, and had a flight network spanning 134 domestic cities and 75 international cities and regions. What it didn't have until then however was its own airline, but that all changed in December.

On December 29, 2023 Air Road Logistics expanded into its own airline operation as Air Road Cargo, which received its first aircraft that day. The aircraft was B-5159, a 2006 build 737-85C originally delivered to Xiamen Airlines and taken out of service for freighter conversion in August, 2023. Air Road Cargo became the first local all-cargo aircraft based at Xiamen, inside the new Xiamen Free Trade Zone.

Below: B-5159 in service with Xiamen Airlines prior to freighter conversion

byeangel from Tsingtao, China, CC BY-SA 2.0 , via Wikimedia Commons

The expectation at the time was that the 737 would: "better meet the transportation needs of high-value goods including pharmaceuticals, cold chain, fresh products and electronic products" plus "​add new wings for Xiamen to build an international logistics hub city and enhance the core driving role of the central city on the west coast of the Strait". 

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The new airline's initial focus appears to have been a Xiamen-Manila route flown five times weekly transporting 'e-commerce products, flowers, mechanical parts, and other goods'. Future plans called for routes to Ho Chi Minh City and other Southeast asian countries.

Artist's impression of the new Xiang'an Cargo hub

Construction has started on the Air Road Xiang'an Airport Cargo Project, with an expected completion in 2026. Spanning approximately 90,000 sq m, the project includes a cargo terminal and buildings, and a parking lot. The completed project will have an annual cargo throughput capacity of 430,000 tons and is intended to become a comprehensive logistics facility integrating air freight, warehousing, and distribution services. No doubt that will help facilitate the expansion of Air Road Cargo itself, which for now still operates only the single 737-800 freighter.

References

2022. Xiamen Airlines Corporate Social Resonsibility Report. Xiamenair.com
2023, December. ​Starting a New Chapter! First All-cargo Aircraft of Air Road Logistics Officially Put into Service. C&D Inc
2024, January. ​Xiamen welcomes its 1st locally-based all-cargo aircraft. Xiamen Area Pilot Free Trade Zone
2024, February. Xiamen launches first all-cargo direct flight to Manila. Chinadaily.com