25 Jul 2025
#4 July 2025: China Aviation Industry Newsletter
Cathay Opens New Digital and IT Office in Qianhai, Shenzhen
Cathay has officially opened its latest Digital and IT hub at Qianhai Kerry Centre in Shenzhen. Operational from 8 July, the new office will be responsible for global system development, quality assurance, tech support, and digital solutions tailored for the Chinese Mainland. Positioned strategically near its Hong Kong HQ and Guangzhou office, this facility leverages Qianhai’s innovation ecosystem to fast-track Cathay’s digital transformation goals.
Cathay’s CEO Ronald Lam stated, “Digital transformation is crucial to Cathay’s future success. The new Shenzhen IT office will synergise with our Hong Kong headquarters and Guangzhou IT office, leveraging Qianhai’s position as a regional innovation hub to accelerate our digital development and expand our leading technological capabilities.”
CDB Aviation and Loong Air Ink Lease Deal for Six A321neo Aircraft
CDB Aviation has signed lease agreements with Loong Air for six Airbus A321neo aircraft from its orderbook, with deliveries scheduled for 2027. The aircraft will allow Loong Air to boost capacity across popular routes while maintaining a strong focus on fuel efficiency and environmental sustainability.
Jie Chen, CEO of CDB Aviation, remarked, “We are pleased to strengthen our partnership with Loong Air through this transaction, which underscores our commitment to supporting the growth of China’s aviation sector. The A321neo’s superior economics and passenger comfort align perfectly with Loong Air’s vision of expanding its domestic, international and regional network.”
Hubei International Cargo Airlines Launches Operations
Hubei International Cargo Airlines Co., Ltd has been officially established, becoming the province’s first international freight carrier. With Huahu International Airport as its base, the airline aims to drive global distribution for “Made in Hubei” products. Backed by a 90-10 partnership between Reignwood Aviation Group and Ezhou Changda Investment Holding Group Co., Ltd., the company targets operating a fleet of 20 freighters and generating over 5 billion yuan in revenue within five years.
Reignwood Group’s Executive President Zheng Gang said, “Our local airline will prioritize the global distribution of products stemming from Hubei’s broader economic development.”
Acumen’s Take
On Cathay’s New Qianhai IT Office
Cathay’s strategic expansion into Shenzhen through a dedicated digital and IT office signals a sharper focus on tech-driven growth. As Chinese aviation increasingly embraces digital innovation, this move positions Cathay to better serve local market needs and enhance regional collaboration between Hong Kong, Shenzhen, and Guangzhou. It also strengthens its long-term competitiveness by building core capabilities in mainland China’s most dynamic innovation corridors.
On CDB Aviation’s A321neo Lease with Loong Air
This deal underlines the sustained growth trajectory of Chinese carriers and the continued shift towards next-gen aircraft. The A321neo's operational efficiency makes it a cornerstone asset for capacity expansion, particularly in China’s recovering domestic and regional markets. CDB Aviation’s positioning as a responsive lessor supports Loong Air’s ambitions while reinforcing leasing’s role in enabling fleet modernisation.
On the Establishment of Hubei International Cargo Airlines
The launch of Hubei International Cargo Airlines reflects the growing importance of regional cargo hubs within China’s national logistics vision. With an ambitious roadmap of freighter expansion and international route development, the airline is set to accelerate trade flows from central China. For lessors, OEMs and cargo partners, the formation of new cargo carriers like Hubei represents significant long-term opportunity, especially as e-commerce and manufacturing drive outbound demand.
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