Air China Cargo Co. Ltd. will open an Israeli route in mid-2009, predicts Krief Group chairman Reuven Krief. He added that the Chinese Embassy in Israel supports the idea. The company is the Israel agent for Air China.
Krief said that there is already 600 tons of air freight a month between Israel and China, with an equal share between imports and exports. Most of the cargo is routed through Europe via various airlines. He predicts that a direct air cargo route will boost trade, especially Israeli exports to China.
In early 2008, El Al cancelled its cargo route to China because of the high cost. The Ministry of Industry, Trade and Labor recently predicted that more companies will opt to ship cargo by sea, rather than air, because of the latter's high costs.
Despite this trend, Krief believes that Air China Cargo will undoubtedly be able to offer attractive freight prices using more efficient planes and shorter routes than those flown by El Al. This is because Air China can overfly Arab countries, cutting distance, flight time, and costs. He added that Air China Cargo plans to carry Israeli cargos throughout the Far East, Australia, and New Zealand.
Air China Cargo is a subsidiary of Air China Ltd., China's national carrier, whose hub is Beijing International Airport. The company flies to 140 domestic and international destinations and has a fleet of 209 Boeing and Airbus planes.
Published by Globes [online], Israel business news - www.globes-online.com - on August 18, 2008
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