24 Apr 2025
#4 April 2025: China Aviation Industry Newsletter
Cathay Cargo Celebrates Hong Kong’s Status as World’s Busiest Cargo Airport
Cathay Cargo has congratulated Hong Kong International Airport (HKIA) for being named the world’s busiest cargo airport by Airports Council International, marking the 14th time since 2010. Cathay Cargo’s Director Tom Owen praised HKIA’s success as a result of innovation, collaboration, and world-class facilities, reaffirming Cathay’s commitment to investing in fleet, infrastructure, and digital capabilities to support HKIA’s long-term leadership in global air freight.
China Eastern Adds Milan, Copenhagen, and Expands in Europe
China Eastern Airlines will launch three new European routes this summer as part of its long-haul growth strategy: Shanghai–Geneva (June 16, 4x weekly), Shanghai–Milan (June 20, daily), and Shanghai–Copenhagen (July 17, 3x weekly). The airline will also increase frequencies on its Shanghai–Venice route. Chinese carriers now hold 82.5% of the China-Europe seat capacity, boosted by continued access to Russian airspace, giving them a flight time and cost advantage over their European competitors who must reroute.
China Southern Halts Boeing 787-8 Sale Amid Tariff Tensions
China Southern Airlines has suspended the sale of 10 Boeing 787-8 aircraft and two GEnx-1B70/P2 engines, citing new U.S.-China tariffs that have impacted cross-border deal viability. Originally listed for sale, the GE-powered aircraft are now viewed as less commercially attractive due to geopolitical uncertainties and shifting trade dynamics, with no clear timeline for relisting.
Acumen’s Take
On HKIA’s Cargo Leadership and Cathay’s Role
Hong Kong’s position as the world’s top cargo airport highlights the strength of the Asia-Pacific freight ecosystem. Cathay’s ongoing investment across its cargo operations reflects a long-term commitment to HKIA as a global logistics hub, especially amid growing demand for express and e-commerce freight services.
On China Eastern’s European Expansion
China Eastern’s aggressive push into Europe signals the resurgence of outbound long-haul demand from China. With access to Russian airspace offering a critical competitive edge, Chinese carriers are well-positioned to reclaim market share and deepen global network connectivity. Acumen views this as a strategic route expansion play that leverages current geopolitical realities.
On China Southern’s Suspension of 787-8 Sale
The decision to halt the 787-8 sale reflects growing sensitivity in cross-border aircraft transactions due to worsening U.S.-China trade tensions. As lessors and buyers assess tariff implications, such pauses could lead to supply chain disruptions and repricing of widebody assets, particularly those powered by U.S.-manufactured engines.
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