EXTRANS GLOBAL - Air Freight News - Week 31 2025

Air Cargo General

1) '9th LCC' Parata Air - Introducing Its First Aircraft This Week

According to the aviation industry on the 2nd, Parata Air is scheduled to hold a ceremony for the introduction of its first aircraft at Gimpo Airport on the 27th. The first aircraft is an Airbus A330-200, a wide-body twin-engine passenger jet. On the same day, CEO Cheol-min Yoon will personally announce the company’s future business plans.
Parata Air’s predecessor was FlyGangwon, established in 2016, which faced numerous challenges. Based at Yangyang Airport in Gangwon Province, it aimed to be a regional low-cost carrier (LCC) but struggled with market saturation and low demand due to COVID-19, leading to financial difficulties. In 2023, it returned all six of its aircraft and entered corporate rehabilitation proceedings.

In June last year, it was acquired by Winnix and rebranded as Parata Air.

Parata Air was able to introduce its first aircraft after receiving a Special Airworthiness Certificate from the Ministry of Land, Infrastructure and Transport. This certificate is issued when the aircraft manufacturer or owner’s proposed operational scope is deemed safe for operation. Additionally, Parata Air completed training for approximately 60 crew members recruited earlier this year, finalizing preparations for its relaunch.

However, it has not yet obtained an Air Operator Certificate (AOC). The AOC is a permit for air transport operations, requiring the airline to pass inspections by the Ministry of Land, Infrastructure and Transport regarding its organization, personnel, flight operations, maintenance, and crew training programs. Significant changes, such as a change in the airline’s largest shareholder, also require re-acquisition of the AOC. Without this certificate, the airline cannot operate flights.

2) 'Asiana Cargo Merger' Integrated Air Incheon - Facing Internal and External Challenges

Air Incheon, set to launch as an integrated entity by acquiring Asiana Airlines’ cargo division, is facing last-minute difficulties. The company’s founder, now the second-largest shareholder, has been filing lawsuits against the company. Additionally, there is the challenge of 'organizational management' to integrate employees from different work environments.

According to industry and legal sources on the 24th, the Incheon District Court’s Civil Division 14 is reviewing a lawsuit filed by Air Incheon’s founder, Yong-kwang Park, to nullify a shareholders’ meeting resolution. The court has not yet set a specific hearing date.

Established by Park in 2012, Air Incheon saw private equity firm Socius secure a 51% controlling stake in 2022, becoming the largest shareholder. As of December 31 last year, the ownership structure was Socius Aviation (a special-purpose company) with 80.3%, Park with 19.4%, and Incheon City with 0.3%.

As part of the merger between Korean Air and Asiana Airlines, the European Commission (EC) required the sale of Asiana’s cargo division, which Air Incheon decided to acquire. For Socius, this presented an opportunity to increase the company’s value and exit with investment returns. Park, now the second-largest shareholder, began opposing Air Incheon’s moves in November last year. He filed an injunction to prohibit the exercise of voting rights, but the Incheon District Court’s Civil Division 21 dismissed the request. Park appealed but withdrew the appeal in April.

In January, Air Incheon signed a contract to acquire Asiana’s cargo division and leased a Boeing 747-400F from Asiana Airlines in February. Park filed another lawsuit to invalidate resolutions related to the cargo division merger from a temporary shareholders’ meeting held in February. The final acquisition date was postponed from July 1 to August 1 due to delays in approvals from some overseas competition authorities for certain Asiana cargo routes. Air Incheon is accelerating merger procedures, including relocating its headquarters to Magok-dong, Gangseo-gu, Seoul.

As Air Incheon faces internal and external challenges, there are concerns that achieving a smooth integration post-merger will be difficult. The company also faces the challenge of establishing a presence in the increasingly competitive air cargo market. An Air Incheon representative stated, “We have not received an official position regarding Park’s lawsuit.”

3) No Surge in Air Cargo Demand Ahead of Tariff Deadline – Freight Rates Remain Stable

Despite the looming U.S. high-tariff deadline on Chinese goods (August 1, with some extended to August 18), there has been no significant surge in air cargo demand. The market has seen preemptive shipments or a cautious approach due to delayed trade negotiations, keeping freight rates stable. According to Freightos, citing its Freightos Air Index (FAX), freight rates for China-U.S. routes fell 7% week-on-week to $5.17 per kilogram, Southeast Asia-U.S. routes remained flat at $4.84, and South Asia-U.S. routes dropped 4% to $4.55.

Europe-U.S. (Atlantic) routes also saw a slight decline to $1.77 per kilogram.

Freightos noted, “Despite the tariff deadline, there has not been a significant increase in demand for urgent air transport,” attributing this to expectations of trade negotiation resolutions, potential extensions, or preemptive shipments already completed.

Although some shippers anticipated urgent cargo volumes in early July, the market has remained quiet. This is likely due to small and medium-sized importers adopting a wait-and-see strategy to avoid the burden of 25-40% tariff increases. Meanwhile, the ocean freight market has seen a significant decline in rates. Spot rates for Asia-U.S. West Coast routes plummeted 60% from $6,000 per FEU in mid-June to $2,325 last week. East Coast routes also fell from $7,100 to $4,100, a 57% drop compared to the previous year.

Other key ocean freight indicators include:

• Asia-North America West Coast: Down 2%, $2,325 per FEU
• Asia-North America East Coast: Down 10%, $4,411 per FEU
• Asia-Northern Europe: Up 2%, $3,572 per FEU
• Asia-Mediterranean: Down 6%, $3,568 per FEU

4) New Chinese Cargo Airline ‘Hubei International Cargo Airlines’ Established – Global Hub Strategy Centered on Ezhou Huahu Airport

As part of its strategy to create an international air cargo hub, Ezhou City in Hubei Province, China, has officially launched a new cargo airline, ‘Hubei International Cargo Airlines.’ Several Chinese media outlets reported that the new cargo airline, based at Ezhou Huahu International Airport (EHU), will officially launch next year to target the global cargo market.

The airline was established as a joint venture, with Reignwood Aviation Group holding a 90% stake and Ezhou Changda Investment Holding Group holding 10%. Hubei International Cargo Airlines aims to complete its establishment approval process by June 30, 2026.

The airline plans to operate 20 cargo aircraft, establish over 10 intercontinental routes, and achieve annual revenue of 5 billion yuan (approximately 950 billion KRW) within five years of its launch. Within 25 years, it aims to operate 100 cargo aircraft and generate annual revenue of 30 billion yuan (approximately 5.7 trillion KRW), building a comprehensive domestic logistics network under its “Global Operation Strategy.”

Meanwhile, Huahu International Airport in Ezhou, Hubei, celebrated its third anniversary since opening on July 17. As a cargo-focused airport, Huahu has handled over 60,000 cargo flights and surpassed 2 million tons of cumulative cargo and mail volume over the past three years.

Huahu International Airport, Asia’s first and the world’s fourth cargo-specialized airport, began full operations in 2022. It has since expanded to 121 passenger and cargo routes, with 17 passenger routes connecting 24 Chinese cities and 104 cargo routes linking 48 international cities, including key hubs in Europe and Asia.

In the first half of 2025, international cargo and mail volume surged 252% year-on-year to 220,000 tons, while international and regional flights increased 333% to 6,500 flights.

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