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<TD height=25><STRONG><FONT class=newstitle01>Korean Air to Set Up Cargo Carrier in China <!!--titleend--></FONT><BR></STRONG>
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<P>Korean Air will set up a joint venture with a unit of China’s largest logistics
<P>company Sinotrans in China in a bid to find its way into the Chinese air cargo
<P>market.
<P>
<P>The airline said Tuesday it signed a contract with Sinotrans Air Transportation
<P>Development, an affiliate of Sinotrans, to establish an air cargo joint venture in
<P>Beijing. Its total capital will amount to US$65 million, with Sinotrans Air contributing
<P>51 percent and Korean Air 25 percent, respectively, with two other Korean
<P>investors, Hana Capital and Shinhan Capital, participating. But Korean Air will
<P>effectively manage the firm as its representatives are to take the CEO and CFO
<P>posts. The joint venture will go into operation in June next year with three cargo
<P>planes.
<P> </P>
<P>Korean Air chairman Cho Yang-ho predicted synergies from the joint venture </P>
<P>between the world’s largest cargo carrier and China’s largest logistics firm. “With </P>
<P>the joint venture, Korean Air will be able to make inroads into China, the world’s </P>
<P>largest logistics market,” a press release quoted him as saying. </P></TD></TR></TBODY></TABLE>
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