Summary: 

  • JD.com, the Online commerce behemoth, is on pace to become the nation’s first e-commerce company that has its air freight fleet.
  • This would be China’s first carrier supported by an e-commerce business and the nation’s third independent freight airline.
  • JD Logistics acquired $3.2 billion in a Hong Kong share sale to upgrade its operations.

The air freight business is a joint venture between the e-commerce conglomerate and Nantong Airport Group, situated in the east Chinese province of Jiangsu, with the e-commerce powerhouse providing 75% of the initial funding. In addition to this, The National Development and Reform Commission (NDRC), China’s national administrator, announced that it intends to assist freight carriers in expanding their aircraft and construct additional cargo center terminals by 2035.

Currently, JD Logistics has air courier services in 300 locations over 100,000 flight journeys around the nation, owing to different agreements with the nation’s numerous airlines, notably Zhejiang Loong Airlines and Zhongyuan Longhao Airlines, in addition to purchasing other freight services.

This new service will bring in an example of opportunities for the company, like higher profit margins and complete control of their transformation process. This new insight provided by the aircraft acquisition could allow the company to gauge the accuracy of their shipments and provide for increased efficiency.