Etihad Airways, China’s SF Airlines To Form Joint Cargo Business

Etihad Airways and China’s SF Airlines have signed an agreement to form a joint air cargo business under which the carriers will integrate their airfreight services and offerings.

Abu Dhabi-based Etihad Cargo and Shenzhen-based SF Airlines said in a joint statement they will “collaborate on a metal-neutral basis” to create a “shared network” offering “increased cargo capacity and enhanced service efficiency.”

SF Airlines is a subsidiary of Chinese logistics firm SF Express. As of March, SF Airlines operated a fleet of 90 Boeing freighters, ranging from 747Fs to passenger-to-freighter conversions, including 737s and 757s. Its network spans more than 100 destinations globally.

Etihad Cargo operates a fleet of five 777Fs, plus has access to belly cargo capacity on Etihad’s global passenger network covering more than 100 destinations. Etihad also has 10 Airbus A350 freighters on order.

“The partnership enables coordinated pricing strategies and alignment of service standards, delivering a streamlined and competitive offering,” the carriers said. “Additionally, the collaboration will support the strategic allocation of routes, sales efforts and client portfolios, allowing for joint decision-making and driving operational synergies.”

The airlines said key areas of focus for the joint venture will include transporting high-value electronics, sensitive equipment and temperature-controlled pharmaceuticals.

“By working closely with SF Airlines, we are expanding our service offerings, optimizing operational efficiency and enhancing our competitive position in the air cargo industry,” Etihad CEO Antonoaldo Neves said.

“This agreement represents a significant milestone ... as we continue to build our international network,” SF Airlines Chairman Li Sheng said. “Partnering with Etihad Airways enables us to increase capacity and gain greater market access.”

The companies cited “growth of cross-border e-commerce, time-sensitive shipments and specialized logistics services” as drivers for the decision to create a joint business.

The companies did not disclose a target date for when the partnership will go into effect.