Shaanxi Provincial Communication Construction Group will fund 50% of the proposed CNY1bn (US$150m) investment in the new startup. Other investors YTO Express Group’s affiliate YTO Cargo Airlines with a 20% stake (US$29.3m), another 20% from Shaanxi West Ham District Metro Airport Development and 10% from Construction Group and Western Airport Group.
The Chinese name for the new cargo airline can be translated as China Northwestern International Cargo Airlines.
YTO Express Airlines and the Shaanxi government agreed to establish the business back in 2016.
The Chinese CAA has confirmed that the new airline will operate out of Xian Xianyang International Airport using a Boeing 737 aircraft, offering domestic services (including Hong Kong, Macao and Taiwan) and international cargo and mail transportation services.