On August 31, East China Regional Administration of Civil Aviation issued CAR-121 air carrier operation certificate to Jiangsu Jingdong Cargo Aviation Co., LTD in Nantong, Jiangsu. Jingdong Cargo Aviation was put into operation. The entry of cargo airlines into air logistics with the background of e-commerce giants has brought about new changes in the market.

The entry of e-commerce into the air logistics ushered in the "Chinese version of Amazon Air"

Jingdong Cargo Aviation, a subsidiary of Jingdong Logistics, was incorporated in September 2019 with a registered capital of 600 million yuan. Suqian Jingdong Zhanrui Enterprise Management Co., Ltd. and Nantong Airport Group accounted for 75% and 25% of the total investment, respectively. Jingdong Cargo Aviation plans to start with Boeing 738-800 all-cargo aircraft, with Nantong Xingdong International Airport as the main operation base, mainly engaged in domestic and international air cargo and mail transportation business, and plans to ensure the aviation logistics needs of high-end consumption, high-end manufacturing, medical, fresh and other fields.

In recent years, e-commerce enterprises enter the air logistics by building their own transport capacity, which is becoming a new trend of the industry. Amazon, a famous e-commerce giant in the United States, has rented a fleet of aircraft and set up Amazon Air to establish its own air capacity model. Jd Logistics' layout in the aviation sector has been several years. Since 2017, JD Logistics has started to develop its air cargo business. With the rapid development of express, express, cold chain and other businesses, its air traffic continues to grow rapidly. According to Jingdong Logistics' research and judgment, it is difficult to support the huge volume of the integrated supply chain of Jingdong Logistics by relying solely on the belly cabin of passenger aircraft and charter flights. Therefore, it began to build an independent, controllable, safe and reliable airline network and form the cargo collection capacity. Jingdong Cargo Aviation came into being.

According to the plan of Jingdong Cargo Aviation, it will focus on core cities such as Nantong, Beijing, Shenzhen and Wuxi, focus on the air cargo market in the Yangtze River Delta, Beijing-Tianjin-Hebei and Pearl River Delta economic sectors, and gradually build a complete domestic air cargo backbone network, covering major domestic cities by the end of 2025. Statistics and calculations of Jingdong Cargo Aviation show that, after its operation, it will realize the logistics flow of many important cities in the country "overnight", "one place to the whole country" express air coverage will increase to more than 95% of its service scope.

At the same time, Jingdong Cargo Aviation said that it plans to rely on Jingdong's international business, actively explore the international air cargo market, starting from Southeast Asia, Japan and South Korea and other international routes, gradually expand long-distance routes to Europe and the United States, and build an international route network with Jingdong's overseas warehouse as the main node, hoping to radiate to North America, Europe, the Middle East, Southeast Asia, Japan and South Korea and other markets by the end of 2025.

At the certification ceremony of Jingdong Cargo Air, Yu Rui, CEO of Jingdong Logistics, said that over the years, Jingdong Logistics has continued to build a "responsible supply chain" and constantly open its supply chain infrastructure and technology. Jingdong Cargo Air will effectively help the integrated supply chain improve service quality, help reduce cost and increase efficiency, and promote the high-quality development of the real economy.

It not only integrates into and optimizes the construction of JD's logistics system

As a supply chain solution and logistics service provider, JD Logistics has gradually built six highly coordinated networks in recent years, including warehousing network, comprehensive transportation network, "last kilometer" distribution network, bulk network, cold chain logistics network and cross-border logistics network. Jingdong Cargo Aviation said that as a part of Jingdong's comprehensive transportation network, Singapore Airlines will cooperate with road transportation, sea transportation and other air cargo businesses to jointly meet customers' requirements of high time efficiency and high quality performance, and help enterprises, the industry and society to reduce costs and increase efficiency.

As one of the important transportation capabilities of Jingdong Logistics, Jingdong Cargo Aviation will focus on "warehouse transportation" coordination with Jingdong Logistics "Asia No.1" intelligent industrial Park, as well as central warehouse, satellite warehouse and sorting center, and jointly build an integrated and multi-faceted logistics warehouse distribution network. Jingdong Cargo Aviation said that under the efficient coordination of the "six major networks" of Jingdong Logistics, Jingdong Cargo Aviation can not only obtain a steady supply of goods, but also rapidly improve customers' ability to expand based on the commercial resources accumulated by Jingdong Logistics over the years, ensure the demand for aviation capacity, and build a professional and efficient public air transport platform. At the same time, the operation of Jingdong Cargo Air will greatly improve transportation efficiency and reduce comprehensive operating costs.

It is reported that Jingdong Cargo Aviation has more than 100 professional and technical personnel, with an average industry service age of 11 years. In the future, it will focus on building a core mature team and building a talent training system. At the same time, on the basis of safe operation and sound operation, Jingdong Cargo Air will gradually expand its fleet size in strict accordance with the management regulations and policy requirements of the Civil Aviation Administration, combined with the actual business development needs of Jingdong Logistics, and on the premise of ensuring safe operation.

In recent years, due to the impact of the COVID-19 pandemic, the global supply chain has faced both crises and opportunities, making it a priority to build a flexible and stable supply chain. As an important strategic resource, air cargo contributes to the construction of an open, safe and stable global logistics supply chain system, and also becomes an important way of social supply chain emergency support. During the epidemic prevention and control in Shanghai in the first half of this year, JD Logistics shipped emergency medicine, medical supplies and living support supplies to Shanghai in a timely manner by means of charter flights and passenger planes.

We will deepen the Yangtze River Delta and promote the coordinated development of civil aviation

Jingdong Cargo Airlines chooses to establish its main base in Nantong Xingdong International Airport to achieve win-win development with local aviation logistics, which also echoes and resonates with the coordinated development of civil aviation in the Yangtze River Delta and the construction of world-class airport cluster in the Yangtze River Delta in recent years.

Jiangsu Nantong Xingdong International Airport is 100 kilometers away from Shanghai Hongqiao International Airport and 130 kilometers away from Shanghai Pudong International Airport. It is just across the river from Shanghai, the world's largest trade port and China's largest aviation hub by passenger and cargo volume. Jiangsu itself is a "big Jiangsu" with developed economy and huge international trade scale. Nantong has unique advantages in developing civil aviation, especially aviation logistics.

Under the framework of the coordinated development of civil aviation in the Yangtze River Delta, the channel, management and brand advantages of Shanghai and Shanghai airports in the logistics field will be introduced into Nantong, which will fully stimulate the potential of Nantong Airport in terms of location resources, airspace resources, time resources and security resources. It is based on this idea that on December 28, 2016, Nantong Airport and Shanghai Pudong International Airport Cargo Terminal Co., Ltd. jointly funded and established Nantong Hutong Airport Logistics Development Co., LTD., building a new aviation logistics business platform for Nantong Airport. This "handshake" across the Yangtze River and provincial boundaries marks a substantial breakthrough in the business cooperation between Shanghai and Nantong airports as well as the coordinated development of civil aviation in the Yangtze River Delta. It also provides strong support for the introduction of cargo airlines such as Jingdong Cargo Airlines as the main base from the perspective of strengthening the airport's support ability.

With the development and promotion of cross-river cooperation, Nantong Airport began to attract the attention and favor of many well-known airlines, logistics enterprises and aviation agents in the industry, such as All Nippon Airways, American Polley Airlines, SF Express, YTO, Shenzhen Dayun, etc. The logistics ecosystem has gradually formed in Nantong. A Boeing 767 all-cargo plane, fully loaded with 45 tons of cargo, flies from Nantong to Osaka, Japan, on Oct 2, 2017. It is the first international all-cargo flight since the Nantong airport port opened. The flight is operated by SF Airlines and OCS Logistics (Shanghai) Co., LTD. (OCS) is the cargo shipper. As a subsidiary of All Nippon Airways Group, OCS has rich logistics network resources in the world, and has always taken Shanghai Pudong Airport as its main operation base in China. OCS told the media that Nantong was chosen because of its great potential to undertake spillover effects from Shanghai. On December 9, 2019, Nantong opened the first regular international route of all-cargo aircraft -- Mumbai, India -- Nantong, Jiangsu -- Osaka, Japan. Therefore, Nantong introduced the first long-term Airbus A330-200F all-cargo aircraft of Sichuan Airlines. After Osaka, Japan, Incheon, Korea, Hanoi, Vietnam, Singapore, etc. One after another, new destinations for scheduled all-cargo flights have been extended from the route network of Nantong Airport.

Also in December 2019, the Central Committee of the Communist Party of China and The State Council issued the Outline of the Plan for the Integrated Development of the Yangtze River Delta Region, proposing to "jointly build a world-class airport cluster. We will formulate and implement a strategic plan for the coordinated development of civil aviation in the Yangtze River Delta, build an airport system with clear division of labor, complete functions and smooth connectivity, and enhance the international competitiveness of regional aviation. To consolidate and upgrade Shanghai's status as an international aviation hub, and enhance its ability to radiate to the Yangtze River Delta, the whole country and even the world. Planning and building a new airport in Nantong to become an important part of Shanghai's international aviation hub ". Jingdong Cargo Airlines chooses to settle down in Nantong Xingdong International Airport to participate in the construction of world-class airport cluster in the Yangtze River Delta and the coordinated development of civil aviation in the Yangtze River Delta, which is in response to the national strategic deployment.

Vision of e-commerce, aviation and inter-provincial hubs when innovation meets innovation

Jiangsu Jingdong Cargo Airlines was certified on August 31 this year, sending a signal that e-commerce enterprises establish their own aviation capacity mode. Behind the comparison of Jingdong Cargo Air as the "Chinese version of Amazon Air", it is not difficult to find the similarities and differences in the development of aviation logistics in major economies and major civil aviation markets around the world.

Looking around the world, the development of air cargo enterprises generally presents three waves. The earliest wave was the air cargo enterprises that developed from the traditional civil aviation industry. The second wave is the logistics integrators represented by FedEx, DHL and UPS. These enterprises ride the trend by virtue of their strong adhesion to terminal logistics users and set off a new rising wave of air freight. Corresponding to these enterprises in developed countries is a air freight enterprise with the background of logistics integrated transport in the past few years in our country, such as Postal aviation, SF Air, Yto Air. In recent years, with the rapid development of e-commerce business, e-commerce enterprises not only create a huge logistics market demand, but also enhance user stickiness. The idea of establishing its own air capacity model is good, and Amazon Air and Jingdong Air on both sides of the Pacific Ocean thus reach the same destination. The development of air logistics market over the years also tells us that there is no single mode of air cargo enterprises can dominate the world, diversified ecology, more innovative modes are conducive to the healthy development of the whole market.

Jingdong Cargo Airlines chose to settle in Nantong, Jiangsu Province, which is also an innovative move in aviation hub construction. In December 2019, the Central Committee of the Communist Party of China and The State Council issued the Outline of the Plan for the Integrated Development of the Yangtze River Delta Region, proposing to "jointly build a world-class airport cluster... To consolidate and upgrade Shanghai's status as an international aviation hub, and enhance its ability to radiate to the Yangtze River Delta, the whole country and even the world. Planning and building a new airport in Nantong to become an important part of Shanghai's international aviation hub ". In addition to the two major international airports in Shanghai, Hongqiao and Pudong, the new airport in Nantong will join the construction of Shanghai aviation hub, making the hub cross the provincial boundary. This is an innovation in the construction of an aviation hub for CAAC, and it is also reminiscent of the successful precedent of airports in New York and New Jersey working together to help build New York as an international aviation hub.

Jd Cargo Airlines has been certified and settled in Nantong, Jiangsu Province. It remains to be seen what kind of "chemical reaction" will be generated when innovation meets innovation.

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