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Transportation industry: promoting the development of China\'s air cargo market in an all-round way

The Civil Aviation Administration of China(CAAC) for the first time issued the "cargo and mail flight scheduleallocation policy" for the first time. According to the differentfunctional positioning of the airport and the degree of contradiction betweenthe supply and demand of flight time, the classified, quantified anddifferentiated cargo and mail flight schedule allocation policy is implementedto further improve the daily utilization rate of cargo and mail aircraft andthe utilization rate of airport cargo and mail service facilities andequipment, enhance China's international air cargo transportation capacity andenhance China's domestic air cargo and mail transportation capacity The overallinternational competitiveness of aviation logistics industry. The policy willbe implemented from October 25, 2020.


Policy guidance: adjust and optimize theflight schedule window of cargo and mail flights to greatly increase the supplyof cargo and mail flight schedules. Among them:


1) The main coordination airport of flightschedule and the auxiliary coordination airport of flight schedule: from 22:00to 8:00 the next day, the cargo and mail flight schedule shall be coordinatedand configured according to the principle of equal treatment for passenger andfreight flights. The arrival flight time of cargo and mail flight can bearranged from 6:00 to 8:00, and the departure flight time of cargo and mailflight can be arranged from 22:00 to 24:00; 2) Hub airports with strong cargofunctions (such as Beijing Daxing airport, Shenzhen Bao'an airport, HangzhouXiaoshan Airport, Tianjin Binhai airport, Nanjing Lukou Airport, Zhengzhou Xinzhengairport, etc.) can be appropriately arranged for 8:00 to 22:00 peak hours forinternational regional cargo flights; 3) Non coordinated airport of flightschedule: according to the principle of equal treatment for passenger and cargoflights, coordinate and configure the flight schedule of cargo and mailflights.


This policy will help to enhance thecompetitiveness of China's cargo aviation. According to the previous report, weanalyzed that China's air cargo market has typical characteristics of"strong passenger and weak cargo, strong foreign but weak mediumweak". The main contradiction lies in: 1) the contradiction between supplyand demand (the core hub airport is always tense + the demand of domesticfreight market is unbalanced), resulting in less cargo aircraft scheduling; 2)the restriction of cargo aircraft flight at night leads to less scheduling. Thesample analysis shows that from 23:00 to 6:00 the next day, the time accountsfor 86%; 3) the conflict of passenger and freight overlapping makes itdifficult to avoid heavy passenger and light cargo; 4) under the mixedoperation of passenger and freight, the mixed pricing may lead to improperoverall freight pricing system. This will help to further improve theutilization efficiency and efficiency of flight time resources, give full playto the characteristics of high added value and high timeliness of cargo andpostal aviation, enhance the international competitiveness of China's aviationlogistics industry, and promote the stability of industrial chain and valuechain.


It is expected that the implementation ofthe policy will fully benefit the freight Airlines represented by SF airlines.Combined with the commissioning of Ezhou airport in the future, SF aviation'sbusiness is expected to improve in all aspects. 1) Effectively improve theutilization rate of SF airlines. Previously, we analyzed that 96% of SF flighttime was concentrated at night (23:00-5:00), resulting in only 1.7 shifts perday, while the average daily scheduling of UPS aircraft was about 4 times. Thispolicy will strengthen the daytime hours of airports with strong freightfunctions and non coordinated airports, which will help the company improveutilization and expand its coverage. 2) Combined with the commissioning of Ezhouairport in the future, it will promote the all-round improvement of aviationbusiness and make great strides forward in international business. a) With theopening of Ezhou airport, it may provide more time effective products fordomestic customers.


One is to expand the coverage of agingparts, the other is to provide more product options. b) International businessmay start the next round of growth. After Ezhou airport is put into operationand reaches the ideal state, we expect that SF international business willdevelop vigorously, or promote the organic connection between international anddomestic routes and further promote the utilization rate. c) Aircraft assets:the introduction strategy of wide body priority will help to reduce overallcosts. We believe that after the opening of Ezhou airport in the future, underthe condition of increasing the loading rate through cargo collection, the costof narrow body machine + wide body machine combination will be reduced by 22%,and the cost of air rail combined transport can be reduced by 70%. 3) Based onthis policy and after the Ezhou airport is put into operation in the future,assuming that the utilization rate of SF aircrafts will be doubled during thedaytime, it is expected to bring 9 billion revenue and at least 900 millionprofit contribution.