Growing middle class presents opportunities for Chinese domestic express providers
Article by Cathy Morrow Roberson from Transport Intelligence - Published on September 14th 2013
China Postal Airlines was established in 1996 as a joint venture 51% owned by China Post and 49% by China Southern Airlines and mainly operates mail and cargo transport services for China Post. As of September 2012, the company operated 16 B-737s, however, by 2014 the company will have at least 26 cargo planes.
With an estimated 630 million consumers classified as “middle class” by 2022, international companies will flock to China. To meet this demand, domestic express providers will need to improve their supplychains in order to effectively compete. Not only is the express market a highly competitive one, it is also fragmented and the likelihood of consolidation is quite possible as competition heats up.