Nanjing Lukou Airport Cargo Center

China's aviation cargo industry has been stagnating for nearly 10 years. Domestic consumer behavior and the express logistics market have undergone profound changes. To develop and maintain a sustainable competitive edge without being淘汰, the aviation cargo industry must undergo a strategic transformation and upgrade. Otherwise, it will only sink deeper into a quagmire from which it cannot extricate itself. There are three strategic approaches to achieving this transformation and upgrade:

Firstly, gain a competitive edge through economies of scale, which in economics is referred to as "economy of scale." This involves improving production efficiency, reducing costs, and even achieving a degree of monopoly to secure the market.

The so-called merger of the three major airlines' cargo operations follows this path. By integrating the cargo aircraft of the three major airlines and establishing a single large cargo airline, we can focus our efforts on developing the cargo business, which is an effective strategy for quickly addressing issues. On one hand, the expansion of scale will reduce unit costs, the synergistic effects will optimize the route network, and production efficiency will improve. On the other hand, our market control will strengthen, giving us a scale advantage in competition, pricing power, and more negotiating leverage with logistics companies and agents. We will also have an advantage in competing with foreign airlines. Of course, with the presence of strong foreign airlines, international express companies, and domestic private airlines, the situation of excessive profits due to monopolies is unlikely to arise.