Asia Pacific Air Freight 155774

MarketLine Industry Profile
Air Freight in Asia-Pacific

July 2022
Reference Code: 0200-2347
Publication Date: July 2022
Primary NAICS: 481112
Secondary NAICS: 481212
WWW.MARKETLINE.COM
MARKETLINE. THIS PROFILE IS A LICENSED PRODUCT
AND IS NOT TO BE PHOTOCOPIED
© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 1

Industry Profiles
1. Executive Summary
1.1. Market value

The Asia-Pacific air freight sector grew by 23.9% in 2021 to reach a value of $51.1 billion.
1.2. Market value forecast

In 2026, the Asia-Pacific air freight sector is forecast to have a value of $66.3 billion, an increase of 29.7%
since 2021.
1.3. Category segmentation

International is the largest segment of the air freight sector in Asia-Pacific, accounting for 88.4% of the
sector's total volume.
1.4. Geography segmentation

China accounts for 31.5% of the Asia-Pacific air freight sector value.
1.5. Market rivalry

High fixed costs, consolidated sector structure and the similarity of players to each other contribute to a
highly competitive environment in the Asia-Pacific air freight sector.
1.6. Competitive Landscape

The Asia-Pacific air freight sector is highly competitive due to the presence of a significant number of large
players. Large regional firms such as All Nippon Airways, China Southern Airlines, and Asiana have a strong
presence in the sector, benefiting from their strong operational networks and aircraft fleets, through which
they are able to transport a significant amount of cargo.

Industry Profiles
TABLE OF CONTENTS
1. Executive Summary 2
1.1. Market value ................................................................................................................................................2
1.2. Market value forecast ..................................................................................................................................2
1.3. Category segmentation................................................................................................................................2
1.4. Geography segmentation.............................................................................................................................2
1.5. Market rivalry...............................................................................................................................................2
1.6. Competitive Landscape ................................................................................................................................2
2. Market Overview 7
2.1. Market definition .........................................................................................................................................7
2.2. Market analysis ............................................................................................................................................7
3. Market Data 9
3.1. Market value ................................................................................................................................................9
4. Market Segmentation 10
4.1. Category segmentation..............................................................................................................................10
4.2. Geography segmentation...........................................................................................................................12
5. Market Outlook 13
5.1. Market value forecast ................................................................................................................................13
6. Five Forces Analysis 14
6.1. Summary ....................................................................................................................................................14
6.2. Buyer power...............................................................................................................................................16
6.3. Supplier power ...........................................................................................................................................17
6.4. New entrants .............................................................................................................................................19
6.5. Threat of substitutes ..................................................................................................................................21
6.6. Degree of rivalry.........................................................................................................................................22
7. Competitive Landscape 24
7.1. Who are the leading players? ....................................................................................................................24

Industry Profiles
7.2. What are the strengths/weaknesses of leading players? ..........................................................................24
7.3. What strategies do leading players follow? ...............................................................................................24
7.4. What impact is COVID-19 having on the sector? .......................................................................................25
8. Company Profiles 26
8.1. Air China Ltd...............................................................................................................................................26
8.2. Air Incheon Co Ltd......................................................................................................................................29
8.3. Asiana Airlines Inc ......................................................................................................................................31
8.4. Cathay Pacific Airways Ltd..........................................................................................................................35
8.5. China Southern Airlines Co Ltd...................................................................................................................39
8.6. All Nippon Airways Co Ltd ..........................................................................................................................42
9. Macroeconomic Indicators 44
9.1. Country data ..............................................................................................................................................44
Appendix 45
Methodology ...........................................................................................................................................................45
9.2. Industry associations..................................................................................................................................46
9.3. Related MarketLine research .....................................................................................................................46
About MarketLine....................................................................................................................................................47

Industry Profiles
LIST OF TABLES
Table 1: Asia-Pacific air freight sector value: $ billion, 2016–21 9
Table 2: Asia–Pacific air freight sector category segmentation: % share, by volume, 2016–2021 10
Table 3: Asia-Pacific air freight sector category segmentation: $ Asia-Pacific, 2016-2021 10
Table 4: Asia–Pacific air freight sector geography segmentation: $ billion, 2021 12
Table 5: Asia-Pacific air freight sector value forecast: $ billion, 2021–26 13
Table 6: Air China Ltd: key facts 26
Table 7: Air China Ltd: Annual Financial Ratios 27
Table 8: Air China Ltd: Key Employees 28
Table 9: Air Incheon Co Ltd: key facts 29
Table 10: Air Incheon Co Ltd: Key Employees 30
Table 11: Asiana Airlines Inc: key facts 31
Table 12: Asiana Airlines Inc: Annual Financial Ratios 33
Table 13: Asiana Airlines Inc: Key Employees 34
Table 14: Cathay Pacific Airways Ltd: key facts 35
Table 15: Cathay Pacific Airways Ltd: Annual Financial Ratios 36
Table 16: Cathay Pacific Airways Ltd: Key Employees 37
Table 17: Cathay Pacific Airways Ltd: Key Employees Continued 38
Table 18: China Southern Airlines Co Ltd: key facts 39
Table 19: China Southern Airlines Co Ltd: Annual Financial Ratios 40
Table 20: China Southern Airlines Co Ltd: Key Employees 41
Table 21: All Nippon Airways Co Ltd: key facts 42
Table 22: All Nippon Airways Co Ltd: Key Employees 43
Table 23: Asia-Pacific exchange rate, 2017–21 44

Industry Profiles
LIST OF FIGURES
Figure 1: Asia-Pacific air freight sector value: $ billion, 2016–21 9
Figure 2: Asia-Pacific air freight sector category segmentation: $ Asia-Pacific, 2016-2021 11
Figure 3: Asia–Pacific air freight sector geography segmentation: % share, by value, 2021 12
Figure 4: Asia-Pacific air freight sector value forecast: $ billion, 2021–26 13
Figure 5: Forces driving competition in the air freight sector in Asia-Pacific, 2021 14
Figure 6: Drivers of buyer power in the air freight sector in Asia-Pacific, 2021 16
Figure 7: Drivers of supplier power in the air freight sector in Asia-Pacific, 2021 17
Figure 8: Factors influencing the likelihood of new entrants in the air freight sector in Asia-Pacific, 2021 19
Figure 9: Factors influencing the threat of substitutes in the air freight sector in Asia-Pacific, 2021 21
Figure 10: Drivers of degree of rivalry in the air freight sector in Asia-Pacific, 2021 22

Industry Profiles
2. Market Overview
2.1. Market definition

The air freight sector is defined as consisting of revenues generated from freight transportation by air.
Units of volumes are measured in freight ton-kilometers (FTK). Air freight volumes, consisting of freight, express,
and diplomatic bags, include both domestic and international freight which for the purposes of this report are
counted at each flight stage.
Value represents the revenue obtained by airline companies from freight transportation. All market data and
forecasts are represented in nominal terms (i.e., without adjustment for inflation) and all currency conversions
used in the creation of this report have been calculated using constant 2021 annual average exchange rates.
For the purposes of this report, the global market consists of North America, South America, Europe, Asia-Pacific,
Middle East, South Africa and Nigeria.
North America consists of Canada, Mexico, and the United States.
South America comprises Argentina, Brazil, Chile, Colombia, and Peru.
Europe comprises Austria, Belgium, the Czech Republic, Denmark, Finland, France, Germany, Greece, Ireland, Italy,
Netherlands, Norway, Poland, Portugal, Russia, Spain, Sweden, Switzerland, Turkey, and the United Kingdom.
Scandinavia comprises Denmark, Finland, Norway, and Sweden.
Asia-Pacific comprises Australia, China, Hong Kong, India, Indonesia, Kazakhstan, Japan, Malaysia, New Zealand,
Pakistan, Philippines, Singapore, South Korea, Taiwan, Thailand, and Vietnam.
Middle East comprises Egypt, Israel, Saudi Arabia, and United Arab Emirates.
2.2. Market analysis

The sector recorded strong growth of 23.9% in 2021 after declining in 2020 by 25%. The sector is forecast for
moderate growth in 2022 before slowing thereafter over the forecast period.
The Asia-Pacific air freight sector had total revenues of $51.1 billion in 2021, representing a compound annual
growth rate (CAGR) of 1.9% between 2016 and 2021. In comparison, the Chinese and Japanese sectors grew with
CAGRs of 3.8% and 4% respectively, over the same period, to reach respective values of $16.1 billion and $6.5
billion in 2021.
The sector recorded steep decline in 2020 of 25% largely due to the COVID-19 pandemic. The leading players in
the region were forced to follow government restrictions in order to curtail the spread of the virus. Goods that
were transported were required to be COVID-free and this meant greater delays and costs to market players.
Additionally, air freight firms had to deal with employee contractions of the virus which will have meant further
delays to air freight services, slowing business.
Store closures in the year alongside disruptions in global supply chains due to COVID-19 damaged the value and
volume of the air freight sector in 2020 as decreased consumer demand reduced the volume of imports and
exports.
In 2021, the market rebounded swiftly from its decline in 2020. The return of consumer demand led to significant
increases in import and export volume. This greatly improved demand in the air freight sector. Additionally, the
swift uptake of the COVID-19 virus boosted population immunity across the Asia-Pacific and lower infection rates
led to increased labor participation which greatly boosted productivity in the sector.

Industry Profiles
Sector production volumes declined with a CAGR of -0.1% between 2016 and 2021, to reach a total of 79.6 billion
freight ton-kilometers (FTK) in 2021. The sector's volume is expected to rise to 89.3 billion freight ton-kilometers
(FTK) by the end of 2026, representing a CAGR of 2.3% for the 2021–26 period.
The International segment was the sector's most lucrative in 2021, with total revenues of $75.3 billion, equivalent
to 94.5% of the sector's overall value. The Domestic segment contributed revenues of $4.3 billion in 2021,
equating to 5.5% of the sector's aggregate value.
The performance of the sector is forecast to accelerate, with an anticipated CAGR of 5.3% for the five-year period
2021–26, which is expected to drive the sector to a value of $66.3 billion by the end of 2026. Comparatively, the
Chinese and Japanese sectors will grow with CAGRs of 6.5% and 6.2% respectively, over the same period, to reach
respective values of $22.1 billion and $8.9 billion in 2026.
The market is forecast for continued growth, however at a much slower rate than experienced in 2021.
Inflationary concerns may slow investment and government spending in adjacent markets which may undermine
demand somewhat. However, the greatest cause of the slowdown will be maturation of the market which will
reduce growth possibility in the sector. Increased interest rates may further reduce investment levels while
consumer demand could also fall from 2021 levels. Despite this, the market is forecast for continued growth over
the forecast period.

Industry Profiles
3. Market Data
3.1. Market value

The Asia-Pacific air freight sector grew by 23.9% in 2021 to reach a value of $51.1 billion.
The compound annual growth rate of the sector in the period 2016–21 was 1.9%.
Table 1: Asia-Pacific air freight sector value: $ billion, 2016–21
Year $ billion € billion % Growth

2016 46.5 39.3
2017 52.2 44.1 12.3%
2018 56.1 47.4 7.5%
2019 55.0 46.5 (2.0%)
2020 41.3 34.9 (25.0%)
2021 51.1 43.2 23.9%
CAGR: 2016–21 1.9%

SOURCE: MARKETLINE MARKETLINE
Figure 1: Asia-Pacific air freight sector value: $ billion, 2016–21

Industry Profiles
4. Market Segmentation
4.1. Category segmentation

International is the largest segment of the air freight sector in Asia-Pacific, accounting for 88.4% of the sector's
total volume.
The Domestic segment accounts for the remaining 11.6% of the sector.
Table 2: Asia–Pacific air freight sector category segmentation: % share, by volume, 2016–2021
Category 2016 2017 2018 2019 2020 2021

International 82.5% 83.8% 85.2% 86.2% 89.6% 88.4%
Domestic 17.5% 16.2% 14.8% 13.8% 10.4% 11.6%
Total 100% 100% 100% 100% 100% 100%

Table 3: Asia-Pacific air freight sector category segmentation: $ Asia-Pacific, 2016-2021
Category 2016 2017 2018 2019 2020 2021 2016-21

CAGR(%)
International 66,165.1 72,841.1 76,380.3 74,372.0 59,642.7 70,345.2 1.2%
Domestic 14,027.8 14,039.7 13,277.0 11,856.9 6,915.1 9,265.3 -8.0%
Total 80,192.9 86,880.8 89,657.3 86,228.9 66,557.8 79,610.5 (.1%)


Industry Profiles
Figure 2: Asia-Pacific air freight sector category segmentation: $ Asia-Pacific, 2016-2021

Industry Profiles
4.2. Geography segmentation

China accounts for 31.5% of the Asia-Pacific air freight sector value.
Japan accounts for a further 12.8% of the Asia-Pacific sector.
Table 4: Asia–Pacific air freight sector geography segmentation: $ billion, 2021
Geography 2021 %
China 16.1 31.5
Japan 6.5 12.8
South Korea 3.6 7.1
India 1.1 2.1
Rest of Asia-Pacific 23.8 46.6
Total 51.1 100.1%

Figure 3: Asia–Pacific air freight sector geography segmentation: % share, by value, 2021

Industry Profiles
5. Market Outlook
5.1. Market value forecast

In 2026, the Asia-Pacific air freight sector is forecast to have a value of $66.3 billion, an increase of 29.7% since
2021.
The compound annual growth rate of the sector in the period 2021–26 is predicted to be 5.3%.
Table 5: Asia-Pacific air freight sector value forecast: $ billion, 2021–26
Year $ billion € billion % Growth

2021 51.1 43.2 23.9%
2022 54.7 46.2 7.0%
2023 58.0 49.0 6.0%
2024 60.8 51.4 4.9%
2025 63.7 53.8 4.8%
2026 66.3 56.1 4.2%
CAGR: 2021–26 5.3%

Figure 4: Asia-Pacific air freight sector value forecast: $ billion, 2021–26

Industry Profiles
6. Five Forces Analysis

The air freight market will be analyzed taking air freight providers as players. The key buyers will be taken as
individuals and companies requiring air freight, and specialist equipment, airport infrastructure and fuel suppliers
as the key suppliers.
6.1. Summary
Figure 5: Forces driving competition in the air freight sector in Asia-Pacific, 2021
High fixed costs, consolidated sector structure and the similarity of players to each other contribute to a highly
competitive environment in the Asia-Pacific air freight sector.
Most buyers in this sector are corporate, which strengthens buyer power as larger companies are able to make
considerable purchases and therefore make their business important to sector players. Buyer power is weakened by
the levels of differentiation between players, which occurs in terms of the type of cargo they transport or the
geographical areas they serve, although many players operate in similar geographical sectors.
The size of suppliers in this sector is large. Aircraft fuel is sold by major oil companies and airlines will usually enter into
long-term agreements with them. Most major cities have, at most, a small number of airports which are run either by
large corporations or the local government. The vast majority of players in this sector must either buy or lease aircraft.
Aircraft manufacturers form an oligopoly. Supplier power is moderate in this sector.
Economies of scale are key to the success of an air freight company; profit margins are often thin and it can be hard to
turn a profit, especially for those companies that are reliant on a single market. Thus, it is extremely difficult for new
players to enter, considering the amount of capital required and the low level of profitability.
There are various substitutes to air freight transportation, with the viability of each being dependent on numerous
factors. Two major substitutes are road and rail transportation. These alternatives are usually more cost effective,
especially for shorter distance journeys. However, dependent on the distance, the use of road or rail freight is hindered
somewhat if time is of importance to a buyer.

Industry Profiles
There are high exit costs in this sector, requiring the divestment of specific assets, which can prove costly. In the current
economic climate, airport expenses continue to raise the cost of operations and potential fluctuations in crude oil
prices can lower profit margins in the future. This all contributes to a moderate degree of rivalry.

Industry Profiles
6.2. Buyer power
Figure 6: Drivers of buyer power in the air freight sector in Asia-Pacific, 2021
Most buyers are corporate, which strengthens buyer power as larger companies are able to make considerable
purchases and therefore make their business important to sector players. Brand loyalty is reduced due to low switching
costs in this sector, with many buyers able to switch easily to players who offer the best freight rates. Nevertheless,
only a few companies offer the freight of outsize, oversize, unique and heavy air cargo, which weakens buyer power to
some extent.
Some companies may also distribute their products via road or rail transportation, which is often more cost effective
than air transportation, especially where short distances are involved, meaning that substitutes are viable for buyers in
this sector. However, for transportation further afield, to say North America or Europe, maritime and air transport need
to be used, with air transport clearly standing out as the faster means of transportation between the two.
Many countries in the Asia-Pacific region, such as China, have an extensive rail network, increasing the viability of this
mode of transportation as an alternative to air. Additionally, China is undergoing a huge upgrade to its transportation
infrastructure, which will open up alternatives to air freight transportation for buyers. International freight
transportation can only be carried out through air or shipping. The availability of substitutes makes the customer base
smaller for the air freight sector, which serves to increase buyer power. Backwards integration is unlikely as buyers
would require the capital to acquire aircraft and considerable expertise.
Buyer power is weakened by the levels of differentiation between players, which occurs in terms of the type of cargo
they transport or the geographical areas they serve, although many players operate in similar geographical sectors. In
Australia, for instance, Tasman Cargo Airlines specializes in transporting animal livestock and a wide range of dangerous
goods which cannot be accepted by commercial airlines carrying out freight activities.
As a relatively costly form of goods transportation, air freight is only likely to be chosen if it offers significant advantages
over other modes, such as speed of delivery.
Overall, buyer power is assessed as moderate.

Industry Profiles
6.3. Supplier power
Figure 7: Drivers of supplier power in the air freight sector in Asia-Pacific, 2021
Suppliers in this sector are typically large in scale. Aircraft fuel is sold by major oil companies and airlines will usually
enter into long-term agreements with them. Most major cities have, at most, a small number of airports which are run
either by large corporations or the local government.
Most players in this sector must either buy or lease aircraft. Aircraft manufacturers form an oligopoly. Aircraft
manufacturing is highly capital intensive; as such, there are very few players in the market. For large (wide-body)
aircraft, there are only two suppliers worldwide, Boeing and Airbus. Both are huge corporations, creating a duopoly.
Other manufacturers such as Embraer, Bombardier and United Aircraft Corporation (parent company of Ilyushin,
Tupolev and Sukhoi) have limited supply. However, state-owned Comac (Commercial Aircraft Corporation of China) has
recently tested its new aircraft, the Comac C919, which intends to compete with Airbus and Boeing in terms of short-
haul aircraft, plausibly posing a threat to Western manufacturers. In this way, competition among aircraft suppliers
could increase in the future. For instance, approximately half of China Southern Airlines and Air China's aircraft have
been manufactured by Airbus, while almost all of the rest of them are from Boeing.
These aircraft manufacturers do have other business interests such as defense contracts, especially Bombardier and
United Aircraft Corporation, but the majority of their revenue comes from the manufacture of airliners. Because of the
oligopoly in aircraft manufacturing, the business of a single air freight company is not as important for these
manufacturers. The purchasing of aircraft is reliant on a quality product and suppliers in the market trade on
reputations earnt over decades.
Some air freight companies lease aircraft, but due to the capital investment an aircraft requires, leasing companies are
large and not numerous.
Aviation fuel is expensive and can only be purchased from a small number of suppliers. Jet fuel is commoditized, which
weakens supplier power, as individual companies cannot retain an airline's custom on the basis of superior product
quality. However, fuel cannot be substituted for anything else and prices are at the mercy of global oil prices shaped by
OPEC and other large oil producers. Oil prices declined during 2019-2020. Due to the COVID-19 outbreak in late 2019
and 2020, petrol consumption fell dramatically as many major cities around the world imposed strict lockdowns
forbidding any unnecessary movement. In addition to low petrol consumption, an oil price war between Saudi Arabia
and Russia took place during 2020 in regards to oil production levels, which decreased oil prices significantly. Many air
freight companies 'hedge' prices by pre-agreeing a set price with major oil companies for a given period to mitigate

Industry Profiles
against spikes in the oil price. Jet fuel is a large market but is a small percentage of oil revenues overall. This strengthens
supplier power.
Other important suppliers in this sector include companies operating in airport infrastructure. In peak traffic times,
operational slots available to air freight carriers may be limited. China is currently in the process of building many new
airports, with 74 new airports to be constructed between 2017 and 2020, according to the Chinese government. This
will increase options for players so far as selecting an airport is concerned, weakening supplier power somewhat.
Furthermore, air freight companies are unlikely to integrate backwards. This all serves to strengthen supplier power.
However, the lack of raw material differentiation in this sector serves to weaken supplier power. Suppliers are also
unlikely to integrate forward into the air freight business.
Overall, supplier power in the Asia-Pacific sector is assessed as moderate.

Industry Profiles
6.4. New entrants
Figure 8: Factors influencing the likelihood of new entrants in the air freight sector in Asia-Pacific, 2021
Economies of scale are key to the success of an air freight company; profit margins are often thin and it can be hard to
turn a profit, especially for those companies that are reliant on a single market. Thus, it is extremely difficult for new
players to enter, considering the amount of capital required and the low level of profitability.
Fixed costs are high in this sector. Buying or leasing planes is a large cost and the purchasing and maintenance of 'slots'
is also costly. Staff costs are also large; companies often have difficulty turning a profit if market conditions are not
completely favorable. This sector is vulnerable to macroeconomic changes; a major factor influencing the air freight
sector is the national and international economy. Demand for this service is largely dependent on the buyer and can be
strongly influenced by changes in income. In times of economic difficulty, buyers are likely to utilize cheaper
alternatives to air freight, namely road, rail or maritime transportation. Such susceptibility to economic changes acts as
a huge barrier to sector entry.
Air freight companies are highly regulated; governments regulate on safety, security, staff training and aircraft
procedures. Because of the international nature of this sector, certain globally agreed standards are upheld. Green
taxes also apply, referring to the emissions of aircraft. Stringent regulation may prove to be off-putting to potential new
entrants.
Landing slots and routes are strictly controlled by airports and governments; large investment is required from a new
player to establish profitable routes. This is particularly difficult at the major airports around the world, such as Beijing
Capital Airport, London Heathrow Airport and Los Angeles International Airport. However, the planned opening of new
airports across China will open up new avenues for growth for players in this sector. The opening of new routes may be
easier but can be risky compared to competing on established routes; this depends on the operating environment
individual to a chosen country. Any air carrier needs an Air Operator's Certificate granted by the country's authority,
ensuring compliance with safety and financial regulations.
There is little IP required to start an air freight company, patents will be held by aircraft manufacturers and only brands
themselves represent significant IP value. Most large companies are well known in their native countries and have some
customer loyalty.
Despite the factors mentioned previously, the likelihood of any new players entering the sector in the foreseeable
future is extremely unlikely, due to the uncertainty brought about by the COVID-19 pandemic. Players in the sector are
currently dealing with major supply chain disruptions and issues surrounding capacity, therefore any potential new
entrants are likely to wait until stability returns to the sector.

Industry Profiles
Overall, the threat of new entrants in the air freight sector is assessed as weak.

Industry Profiles
6.5. Threat of substitutes
Figure 9: Factors influencing the threat of substitutes in the air freight sector in Asia-Pacific, 2021
There are various substitutes to air freight transportation, with the viability of each being dependent on numerous
factors. Two major substitutes are road and rail transportation.
These alternatives are usually more cost effective, especially for shorter distance journeys. However, dependent on the
distance, the use of road or rail freight is hindered somewhat if time is of importance to a buyer. Several major Asia-
Pacific air freight sectors, such as those in Japan, Indonesia and Australia, operate in countries which are island nations.
Road and rail freight in such countries only really pose as substitute threats where domestic transportation is
concerned, weakening the overall threat of substitutes.
However, in China, despite being the third largest country in the world in terms of land mass, the domestic segment is
marginal. This is because the bulk of the Chinese population resides in the eastern coastal areas of the country. The
imaginary Heihe–Tengchong Line divides the country into two parts, with the eastern areas accounting for 94% of the
population, despite this area only equaling 43% of the country's total land mass. With a well-developed road and rail
network, air freight therefore faces tough competition from other substitute methods of transportation in China.
Marine transportation is a cost effective alternative for long distance transportation. The cost of Asia-Europe rail freight
has often been estimated to be around half that of air freight, while transit times are around 45–50% shorter than
marine freight transport. However, air transportation possesses the advantage of being able to deliver goods over
longer distances significantly quicker than road, rail and marine transportation. This weakens the power of substitutes,
especially in the case of those buyers who require their goods to be transported and received on an urgent basis.
Electronic substitutes such as email and fax do provide an alternative to air mail. Air mail, however, is only a small
contributor to total air freight revenues, and as such does not affect the operations of players significantly.
Overall, the threat of substitutes in this sector is assessed as moderate.

Industry Profiles
6.6. Degree of rivalry
Figure 10: Drivers of degree of rivalry in the air freight sector in Asia-Pacific, 2021
Several players of various sizes dominate the Asia-Pacific air freight sector; they range from large multinationals to
smaller companies with localized, dedicated services. Players in this sector include multimodal transportation
companies such as FedEx, dedicated cargo carriers such as Nippon Cargo Airlines and China Cargo Airlines, and
passenger airlines that have diversified into freight services such as Air China.
The multimodal companies may act as buyers of freight services from various air carriers or, alternatively, multimodal
companies may also acquire carriers. Many competitors offer little differentiation and serve a similar geographical area,
which adds to the degree of rivalry in this sector. Competition may be eased by the fact that many large companies
differentiate their business by offering passenger services to more destinations; thus they are not reliant on freight
revenue alone, unlike companies offering sole cargo services.
However, other airlines offer overnight courier services, freight services or logistics solutions, easing rivalry to an extent
by service and geographical diversification. Nevertheless, the similarity of players is problematic, as changes in sector
conditions affect competitors in a similar fashion, increasing rivalry further. The cost of freight limits the customer base
to some extent, increasing the level of rivalry. Furthermore, relatively low switching costs for buyers means they can
use different players according to value for money, and brand loyalty is subsequently low.
Some players within the sector also operate within other segments of the transportation services market, such as in
road or rail freight, which can provide them with an edge over competitors. Through its FedEx Express segment, the
company offers various services such as express transportation, air and ocean freight forwarding, customs brokerage
and cross-border enablement technology and solutions. It provides logistics services through FedEx Supply Chain
Systems.
There are high exit costs in this sector, requiring the divestment of specific assets, which can prove costly. In the current
economic climate, oil prices fluctuate and airport expenses continue to raise the cost of operations.
Declining growth due to COVID-19 restrictions all around the world have intensified rivalry in the sector. 2020 has been
a bad year for all kinds of markets and industries around the world; however, the COVID-19 outbreak had a big negative
impact on the air freight sector, due to new travel restrictions and health regulations the leading players had to follow.
In addition to that, the disruption on the supply chain has inflicted a huge blow onto the air freight sector, slowing
down their services significantly. This has increased rivalry in the sector as leading players are struggling to make
profits.

Industry Profiles
Overall, there is a strong degree of rivalry.

Industry Profiles
7. Competitive Landscape
The Asia-Pacific air freight sector is highly competitive due to the presence of a significant number of large players.
Large regional firms such as All Nippon Airways, China Southern Airlines, and Asiana have a strong presence in the
sector, benefiting from their strong operational networks and aircraft fleets, through which they are able to
transport a significant amount of cargo.
7.1. Who are the leading players?

All Nippon Airways (ANA) is a Japanese passenger, cargo, and airmail transportation services provider and a
leading player in the air freight sector. The company offers air transportation services, which include airport
ground support, aircraft maintenance, buying, selling, and leasing aircraft and aircraft parts, cargo, and logistics,
and full service and low cost carriers.
China Southern Airlines is a provider of air passenger and cargo transportation services. It offers air transportation
services for passengers, baggage, cargo, and mail at the regional, domestic, and international levels. The company
manages 16 branch offices, six civil aviation subsidiaries, 22 domestic offices in China, and 69 overseas offices. It
operates over 3,000 flights to more than 40 countries and regions.
Asiana Airlines (Asiana), a member of Star Alliance, is a provider of airline services. The company offers domestic
and international air transportation services, aircraft repair and maintenance services, ground operation services,
IT services, and computer reservation brokerage services. It offers airport services such as check-in, baggage, and
special services, along with assistance. Asiana operates 11 routes in South Korea, 72 international passenger
routes to 62 destinations in 21 countries, and 29 cargo routes to 30 cities in 11 countries.
Cathay Pacific Airways (Cathay Pacific) is an international airline company and a leading player in the region. It
provides scheduled air passenger and cargo services to several countries and territories. As of December 2021, it
operated 212 aircraft, including 154 aircraft operated by Cathay Pacific, 48 aircraft by Cathay Dragon, and 10
aircraft by Air Hong Kong.
7.2. What are the strengths/weaknesses of leading players?

ANA offers a wide range of services, which increases its appeal amongst customers and strengthens its offerings in
the sector. Nippon Express operates through three business segments, including distribution and transportation,
good sales, and others. The company's distribution and transportation segment's business includes combined
business, security transportation, heavy haulage and construction, air freight forwarding, and marine and harbor
transportation reportable divisions. The combined business division is engaged in providing railway forwarding,
motor cargo transportation services, and warehousing operations. Furthermore, the heavy haulage and
construction division handles the transportation and installation of heavy cargo and pursues related businesses
throughout Japan. Through its air freight forwarding business division, the company offers air freight forwarding,
travel, and other related services. The goods sales segment is engaged in the sale and leasing of distribution
equipment, sale of wrapping and packaging materials, sale and leasing of vehicles, sale of petroleum and liquefied
petroleum gas (LPG), vehicle maintenance, and insurance sales. Thus, a comprehensive service portfolio assists the
company in delivering sustainable business growth in the long-term. For customers seeking a comprehensive
range of services, ANA is therefore an attractive player.
7.3. What strategies do leading players follow?

Industry Profiles
Strong business partnerships help China Southern Airlines to benefit from the synergies. The company carries out
bilateral and multilateral cooperation agreements with other airlines to serve a large route network around the
world. China Southern Airlines collaborates with existing partners, such as France Airlines and KLM Royal Dutch
Airlines. In FY2020, it had a code-sharing and frequent passenger cooperation with Qatar Airlines. The company
also entered into strategic cooperation agreements with British Airways and Emirates to provide passengers with
more convenient and quality travel options. The company has been strengthening the China Southern Alliance by
gradually integrating with Xiamen Airlines and Sichuan Airlines through capacity layout, route cooperation,
resource sharing, and customer collaboration. As of December 2020, China Southern Airlines had shared codes
with 28 international and domestic airlines, which include British Airlines, KLM Royal Dutch Airlines, American
Airlines, and Qantas Airways. The code-sharing agreements have increased the company’s sales channels and flight
route network.
Asiana is undertaking various strategic initiatives to drive its business growth. In November 2020, the company
announced its plans to offer a new route to Vietnam from December 2020. Airbus A320 aircraft will operate daily
on this route. In September 2020, the company announced its plans to offer a new scheduled charter service to
Bangladesh. The airline planned to operate a Seoul Incheon – Dhaka route with its Airbus A330-300. This route will
be operated on a weekly basis. This initiative helps the company to expand its business operations and client base.
As a significant amount of cargo is transported via the belly of commercial flights, the company’s expansion within
this segment through new flight routes will help to strengthen its position in the air freight sector.
Strong market recognition opens new growth avenues for Cathay Pacific. The company has a strong brand image,
which is reflected through the various awards it has received for its strong and high quality operations. In FY2020,
Cathay Pacific was awarded the Best in Environmental, Social and Governance (ESG) and Best in Reporting in the
large market capitalisation category at the BDO ESG Awards. The company has been on the FTSE4Good Index and
Hang Seng Corporate Sustainability Index consistently since 2011. In December 2020, Cathay Pacific was awarded
the Best Airline in Asia award at the Best in Business Travel Awards by Business Traveler (US) magazine. In
November 2020, Cathay Pacific was ranked in the top five of the World’s Top 20 Airlines by AirlineRatings.com.
Cathay Dragon was also awarded as the Best Airline Economy Class at the Business Traveller China Awards during
the same month. In September 2020, Cathay Pacific was recognized as the Best Airport Lounge for The Pier First
Class Lounge in Hong Kong at the 2020 Business Traveller Asia-Pacific Awards and was also featured in the World’s
Top 10 Airlines of 2020 category at the Skytrax World Airline Awards in June 2020. In April 2020, the company
became the first airline to be awarded CEIV Fresh, IATA’s accreditation for perishable cargo handling.
7.4. What impact is COVID-19 having on the sector?

The COVID-19 outbreak grounded almost the entire global air cargo industry. In early March 2020, the World
Health Organization (WHO) announced the outbreak of COVID-19 as a global pandemic. As the outbreak became
rampant, governments imposed travel restrictions and stopped passenger flight operations globally. According to
the International Air Transport Association’s (IATA) report on March 4, 2020, the global air freight market recorded
a 3.3% decline in cargo ton kilometers (CTKs) in January 2020, compared to January 2019. This was the 10th
consecutive month of annual declines in cargo volumes, due to disruptions in global supply chains, indicating
weaknesses in the industry prior to the pandemic. Major markets such as China, Australia, Japan, Malaysia,
Singapore, South Korea, Thailand, and Vietnam could face a combined loss of $49.7 billion in passenger revenues
in 2020.

Industry Profiles
8. Company Profiles
8.1. Air China Ltd
8.1.1. Company Overview
Air China Ltd (Air China) is a provider of air passenger transport services. It serves several domestic,
international, and regional destinations. The company provides aircraft repair, overhaul, and maintenance
services through various domestic and international service centers. The company also provides ground
services, VIP services, aircraft load balancing services, loading and unloading services, cabin cleaning services,
special equipment maintenance services, special passenger services and training services. It operates hubs in
Beijing, Chengdu and Shanghai. The company is a member of the Star Alliance, the largest airline network
alliance. The company has an operational network in several countries in North America, Asia Pacific, and
Europe. Air China is headquartered in Beijing, China.
The company reported revenues of (Renminbi) CNY74,531.7 million for the fiscal year ended December 2021
(FY2021), an increase of 7.2% over FY2020. The operating loss of the company was CNY16,862.2 million in
FY2021, compared to an operating loss of CNY11,168.8 million in FY2020. The net loss of the company was
CNY16,635.2 million in FY2021, compared to a net loss of CNY14,403.3 million in FY2020.
8.1.2. Key Facts
Table 6: Air China Ltd: key facts
Head office: No.30 Tianzhu Road Tianzhu Airport Ecnmc Dvlpmnt Zn, Beijing, Beijing, China
Telephone: 861061461049
Fax: 861061462805
Number of Employees: 88395
Website: www.airchina.com.cn
Financial year-end: December
Ticker: 753
Stock exchange: Hong Kong Stock Exchange
SOURCE: COMPANY WEBSITE MARKETLINE
8.1.3. Business Description
Air China Ltd (Air China) is a provider of air passenger transportation, cargo transportation, ground services. At the
end of FY2020, the company had a fleet of 707 aircraft, of which 293 are owned, 212 are finance leased, and 202
are operating leased. At the end of FY2020, the company operated 674 passenger routes, including 620 domestic
routes, 48 international routes and six regional routes.
The company operates through two reportable business segments: Airline Operations and Other Operations.
In FY2020, the company carried 68.7 million passengers and carried 1,113.7 million tonnes of cargo and mail. The
company operated 551,373 flights and flown 973 million kilometers in FY2020.

Industry Profiles
Table 7: Air China Ltd: Annual Financial Ratios

Key Ratios 2016 2017 2018 2019 2020
Growth Ratios
Sales Growth % 4.62 7.71 10.28 -0.43 -48.96
Operating Income Growth % 12.74 -32.95 22.04 2.06 -176.28
EBITDA Growth % 8.60 -18.32 13.84 24.88 -74.33
Net Income Growth % -3.60 6.39 1.47 -12.66 -324.34
EPS Growth % -4.19 -2.90 -11.04 -3.63 -323.36
Working Capital Growth % 45.68 16.24 -4.98 8.90 14.50
Equity Ratios
EPS (Earnings per Share) CNY 0.56 0.54 0.48 0.46 -1.03
Dividend per Share CNY 0.11 0.12 0.10 0.04
Dividend Cover Absolute 5.42 5.09 4.57 4.66 10.67
Book Value per Share CNY 5.26 5.92 6.41 6.43 5.34
Profitability Ratios
Gross Margin % 55.26 50.28 46.15 48.05 45.39
Operating Margin % 15.23 9.48 10.49 10.75 -16.07
Net Profit Margin % 5.91 5.84 5.37 4.71 -20.72
Profit Markup % 123.53 101.11 85.69 92.50 83.12
PBT Margin (Profit Before Tax) % 8.87 9.26 7.29 6.70 -26.57
Return on Equity % 9.90 8.42 7.89 6.87 -18.58
Return on Capital Employed % 10.97 7.19 8.38 6.77 -5.49
Return on Assets % 3.11 3.15 3.07 2.39 -4.98
Return on Working Capital % -39.67 -22.88 -29.39 -27.55 18.35
Operating Costs (% of Sales) % 84.77 90.52 89.51 89.25 116.07
Administration Costs (% of Sales) % 28.34 29.84 28.25 24.62 37.87
Liquidity Ratios
Current Ratio Absolute 0.31 0.29 0.33 0.32 0.24
Quick Ratio Absolute 0.29 0.27 0.30 0.29 0.22
Cash Ratio Absolute 0.11 0.08 0.09 0.11 0.07
Leverage Ratios
Debt to Equity Ratio Absolute 1.54 1.10 1.03 1.50 2.08
Net Debt to Equity Absolute 1.44 1.04 0.96 1.40 2.00
Debt to Capital Ratio Absolute 0.61 0.52 0.51 0.60 0.67
Efficiency Ratios
Asset Turnover Absolute 0.53 0.54 0.57 0.51 0.24
Fixed Asset Turnover Absolute 0.73 0.76 0.80 0.69 0.32
Inventory Turnover Absolute 30.20 38.35 43.16 35.58 19.20
Current Asset Turnover Absolute 5.73 6.09 6.15 5.61 3.12
Capital Employed Turnover Absolute 0.72 0.76 0.80 0.63 0.34
Working Capital Turnover Absolute -2.61 -2.41 -2.80 -2.56 -1.14
SOURCE: COMPANY FILINGS MARKETLINE

Industry Profiles
Table 8: Air China Ltd: Key Employees
Name Job Title Board

Chai Weixi Vice President Senior Management
Chen Zhiyong Vice President Senior Management
Duan Hongyi Director Non Executive Board
Feng Gang Director Non Executive Board
Li Dajin Director Non Executive Board
Ma Chongxian Vice President Senior Management
Ni Jiliang Chief Engineer Senior Management
Patrick Healy Director Non Executive Board
Shao Bin Assistant to the President Senior Management
Shao Bin Vice President Shenzhen Airlines Senior Management
Song Zhiyong Chairman Executive Board
Stanley Hui Hon-chung Director Non Executive Board
Tan Huanmin Vice President Senior Management
Wang Mingyuan Vice President Senior Management
Wang Yingnian Vice President Senior Management
Xiao Feng Chief Accountant Senior Management
Xu Chuanyu Chief Safety Officer Senior Management
Xue Yasong Director Non Executive Board
Zhang Hua General Counsel Senior Management
Zhang Sheng Vice President Senior Management
Zhao Xiaohang Vice President Senior Management
Zhao Yang Assistant to the President Senior Management
Zhou Feng Joint Secretary Senior Management

Industry Profiles
8.2. Air Incheon Co Ltd
Air Incheon Co Ltd (Air Incheon) is an airline service provider that offers air transportation services. The
company operates domestic and international scheduled and charter flights. It also provides special cargo
services for perishables, machinery and dangerous goods. Air Incheon’s fleet includes Boeing 737-400SF, Boeing
737-800BDSF and Boeing 767-300BCF. The company offers its services to various destinations including
Vietnam, Russia and China. Air Incheon is headquartered in Incheon, Seoul, South Korea.
8.2.2. Key Facts
Table 9: Air Incheon Co Ltd: key facts
Head office: 220 Icheon International Airport Freight Terminal Road 295.124 Gonghang-dong,
Incheon, Seoul , Republic of Korea (South Korea)
Website: www.air-incheon.com
Financial year-end: April

Industry Profiles
Table 10: Air Incheon Co Ltd: Key Employees

YK Park President Senior Management

Industry Profiles
8.3. Asiana Airlines Inc
Asiana Airlines Inc (Asiana), a member of Star Alliance, is a provider of airline services. The company offers
domestic and international air transportation services, aircraft repair and maintenance services, ground
operation services, IT services, and computer reservation brokerage services. It offers airport services such as
check-in, baggage, special services along with assistance, online seat assignment, and in-flight services including
in-flight entertainment, in-flight lost and found, in-flight duty-free shop, and food and drinks. Asiana also offers
hotel and resort services. The company operates in South Korea, Northeast Asia, Southeast Asia, Central Asia
and Mongolia, Central and South America, the US, Canada, Europe, and Oceania. Asiana is headquartered in
Seoul, South Korea.
The company reported revenues of (Won) KRW4,339,706.4 million for the fiscal year ended December 2021
(FY2021), an increase of 11.9% over FY2020. The operating profit of the company was KRW71,318.4 million in
FY2021, compared to an operating loss of KRW291,082.7 million in FY2020. The net loss of the company was
KRW362,476.4 million in FY2021, compared to a net loss of KRW399,817.5 million in FY2020. The company
reported revenues of KRW1,246,250.1 million for the first quarter ended March 2022, a decrease of 13.7% over
the previous quarter.
8.3.2. Key Facts
Table 11: Asiana Airlines Inc: key facts
Head office: 443-83 Ojeong-Ro, Gangseo-Gu, , Seoul, Republic of Korea (South Korea)
Telephone: 82226693114
Fax: 82221278260
Website: www.flyasiana.com
Ticker: 020560
Stock exchange: Korea Stock Exchange
Asiana Airlines Inc (Asiana) offers air transportation services in domestic and international routes from South
Korea. Asiana Airline operates 11 routes in 10 cities in South Korea and 74 international passenger routes to 64
destinations in 21 countries and 26 cargo routes to 27 cities in 12 countries. Its aircraft fleet includes six A380-800,
one A321-100, one B747-Pax, 11 A350-900, nine B777-200ER, 15 A330-300, five B767-300, two A321-neo, 14
A321-200, two A350F, one B767-Frt, 11 B747-Frt and four A320-200. It offers passenger and freight transportation
services, in-flight services, aircraft repair and maintenance services, ground operation services, check-in, pre-
purchase baggage allowance, special services along with assistance, inflight wifi and roaming services, and online
seat assignment.
Asiana also offers a car rental service through its rentalcars.com portal. Asiana Club is the Frequent Flyer Program
offered by Asiana Airlines and is based on miles earned. Customers availing of membership can get discounts on
hotels, flights, shopping, currency exchange, car booking, and travel insurance. The company is a member of the
Star Alliance, which comprises 26 member airlines. Its airline partners include Myanmar airways, Air Canada, Air
India, Eva Air, Air Bhusan, Copa airline, Etihad airways, Ethiopian airline, Hongkong airline, Lot Polish airline, All
nippon airways, Austrian airline, Gantas airways, Air New Zealand, Croatia airline, Air China, Singapore Airlines, Air
Canada, United Airlines, Thai Airways, Aegean, Avianca, and Air New Zealand. The company operates in South

Industry Profiles
Korea, Northeast Asia, Southeast Asia, Central Asia and Mongolia, Central and South America, the US, Canada,
Europe and Oceania.

Industry Profiles
Table 12: Asiana Airlines Inc: Annual Financial Ratios

Key Ratios 2016 2017 2018 2019 2020
Growth Ratios
EBITDA Growth % 28.55 -42.18 16.69 33.46
Net Income Growth % 411.25 -178.56 -296.84 49.09
EPS Growth % 833.69 -196.25
Working Capital Growth % 16.68 -23.43 61.54 -4.56
Equity Ratios
EPS (Earnings per Share) KRW 804.67 7513.11 -7231.39 -10138.27 -14479.44
Book Value per Share KRW 13038.67 16748.34 13728.54 10655.84 41650.27
Gross Margin % 14.82 13.41 10.16 3.98 1.99
Operating Margin % 4.89 5.48 -0.37 -6.85 -7.64
Net Profit Margin % 0.85 3.82 -2.75 -11.27 -10.26
Profit Markup % 17.40 15.48 11.31 4.14 2.03
PBT Margin (Profit Before Tax) % 1.22 5.68 -3.47 -15.51 -11.74
Return on Equity % 5.52 21.98 -21.07 -99.04 -38.77
Return on Capital Employed % 5.68 7.20 -0.55 -5.34 -3.46
Return on Assets % 1.20 2.98 -2.35 -7.24 -2.92
Return on Working Capital % -13.56 -14.90 1.44 15.92 10.40
Liquidity Ratios
Leverage Ratios
Efficiency Ratios

Industry Profiles
Table 13: Asiana Airlines Inc: Key Employees

Chang Yeong Jung Director Non Executive Board
Gwang Hui Ryu Managing Director Senior Management
Jung Sung-Kwon Chief Executive Officer Senior Management
Ralph Myers General Manager Senior Management
Sudama Prasad Gupta Chief Security Officer Senior Management

Industry Profiles
8.4. Cathay Pacific Airways Ltd
Cathay Pacific Airways Ltd (Cathay Pacific) is an international airline company. It provides scheduled air
passenger and cargo services to several countries and territories. The company operates through the wide-
body aircraft fleet. It also offers airline catering, ramp and passenger handling, ground-handling, cargo,
commercial laundry and aircraft maintenance services. The company’s wholly owned subsidiary, Cathay Dragon
offers scheduled services to Mainland China and other Asian countries. It has operational presence in North
Asia, the Middle East, South East Asia, Southwest Pacific, Europe, Africa, and the Americas. Cathay Pacific is a
member of one-world global alliance. The company is headquartered in Hong Kong City, Hong Kong.
The company reported revenues of (Hong Kong Dollars) HKD45,587 million for the fiscal year ended December
2021 (FY2021), a decrease of 2.9% over FY2020. The operating loss of the company was HKD1,443 million in
FY2021, compared to an operating loss of HKD18,144 million in FY2020. The net loss of the company was
HKD5,527 million in FY2021, compared to a net loss of HKD21,648 million in FY2020.
8.4.2. Key Facts
Table 14: Cathay Pacific Airways Ltd: key facts
Head office: 33rd Floor One Pacific Place, 88 Queensway, Hong Kong, Hong Kong Special
Administrative Region of China
Telephone: 85227473333
Fax: 85228106563
Website: www.cathaypacific.com
Ticker: 293
Cathay Pacific Airways Ltd (Cathay Pacific) is a provider of international airline services. It offers passenger and
cargo transportation services. As of December 31, 2020, it offered services to about 255 destinations in 54
countries.
The company reports through four reportable business segments: Cathay Pacific and Cathay Dragon, HK Express,
Air Hong Kong, and Airline Services.
The company operates across Asia-Pacific, Middle East and Africa, Europe, and the Americas.

Industry Profiles
Table 15: Cathay Pacific Airways Ltd: Annual Financial Ratios

Key Ratios 2017 2018 2019 2020 2021
Growth Ratios
Sales Growth % 4.89 14.16 -3.68 -56.13 -2.87
EBITDA Growth % -1.50 69.48 31.84 -121.08
Net Income Growth % -118.96 286.26 -27.89 -1380.19 74.47
EPS Growth % -36.86 -1009.93
Working Capital Growth % -33.52 121.81 57.94 -35.23 -25.68
Equity Ratios
EPS (Earnings per Share) HKD -0.29 0.52 0.33 -2.96 -0.78
Dividend per Share HKD 0.04 0.26 0.16
Book Value per Share HKD 13.53 14.16 13.90 11.38 11.22
Gross Margin % 57.16 59.55 57.99 45.41 52.39
Operating Margin % -1.49 3.24 3.22 -38.66 -3.17
Net Profit Margin % -1.29 2.11 1.58 -46.12 -12.12
Profit Markup % 133.45 147.23 138.01 83.19 110.03
PBT Margin (Profit Before Tax) % -0.60 2.92 2.01 -47.56 -13.29
Return on Equity % -2.06 3.67 2.69 -29.55 -7.65
Return on Capital Employed % -0.99 2.53 2.18 -11.49 -0.94
Return on Assets % -0.69 1.24 0.84 -10.33 -2.76
Return on Working Capital % 17.16 -19.20 -11.63 94.71 10.13
Liquidity Ratios
Leverage Ratios
Efficiency Ratios

Industry Profiles
Table 16: Cathay Pacific Airways Ltd: Key Employees

Alex McGowan Director Service Delivery Senior Management
Augustus Tang Chief Executive Officer Executive Board
Augustus Tang Director Executive Board
Bradley, Guy Martin Coutts Director Non Executive Board
Captain Chris Kempis Director Flight Operations Senior Management
Chan, Bernard Charnwut Director Non Executive Board
Greg Hughes Chief Operations and Service Delivery Officer Executive Board
Greg Hughes Director Executive Board
Harrison, John Barrie Director Non Executive Board
Joanna Lai General Counsel Senior Management
Joanna Lai Secretary Senior Management
Lavinia Lau Director Commercial Senior Management
Lawrence Fong Director Digital and Information Technology Senior Management
Ma, Chongxian Director Non Executive Board
Mandy Ng Chief Executive Officer HK Express Senior Management
Milton, Robert Aaron Director Non Executive Board
Neil Glenn Director Engineering Senior Management
Patricia Hwang Director People Senior Management
Patrick Healy Chairman Executive Board
Paul Smitton Director Customer Lifestyle Senior Management
General Manager South Asia, Middle East and
Rakesh Raicar Senior Management
Africa
Rebecca Sharpe Chief Financial Officer Executive Board
Rebecca Sharpe Director Executive Board
Ronald Lam Chief Customer and Commercial Officer Executive Board
Ronald Lam Director Executive Board
Song, Zhiyong Director Non Executive Board
Swire, Merlin Bingham Director Non Executive Board
Swire, Samuel Compton Director Non Executive Board
Tom Owen Director Cargo Senior Management
Tung, Lieh Cheung Andrew Director Non Executive Board

Industry Profiles
Table 17: Cathay Pacific Airways Ltd: Key Employees Continued

Vishnu Rajendran Area Manager-Middle East Senior Management
Xiao, Feng Director Non Executive Board
Zhang, Zhuoping Director Non Executive Board
Zhao, Xiaohang Director Non Executive Board

Industry Profiles
8.5. China Southern Airlines Co Ltd
China Southern Airlines Co Ltd (China Southern Airlines) is a provider of air passenger and cargo transportation
services. China Southern Airlines offers air transportation services for passengers, baggage, cargo, and mail at
regional, domestic, and international levels. The company operates through a network of flight routes covering
China and the rest of Asia and also connects with Europe, Africa, Australia, and the Americas. China Southern
Airlines also provides hotel and tour operations, aircraft maintenance services, cargo handling services, air
catering services, and ground services, and other related services. It carries out several bilateral and multilateral
cooperation agreements with other airlines across the world. The company is headquartered in Guangzhou,
China.
The company reported revenues of (Renminbi) CNY101,644 million for the fiscal year ended December 2021
(FY2021), an increase of 9.8% over FY2020. The operating loss of the company was CNY10,238 million in
FY2021, compared to an operating loss of CNY11,819 million in FY2020. The net loss of the company was
CNY12,106 million in FY2021, compared to a net loss of CNY10,847 million in FY2020.
8.5.2. Key Facts
Table 18: China Southern Airlines Co Ltd: key facts
Head office: China Southern Airlines Mansion No. 68 Qixin Road, Baiyun District, Guangzhou,
Guangdong, China
Telephone: 862086112480
Fax: 862086659040
Website: www.csair.com/cn/index.shtml
Ticker: 1055
China Southern Airlines Co Ltd (China Southern Airlines) offers passenger, freight, and mail transport services
internationally. It provides ground services, cargo handling, hotel and tour operations, air catering and other
related services.
The company manages 20 branch offices, eight civil aviation subsidiaries, 23 domestic offices in China and 55
overseas offices. It operates more than 3,000 flights to more than 40 countries and regions.
The company also serves 224 destinations with more than 500,000 seats. In FY2021, China Southern Airlines
carried 98.5 million passengers. The company operates through two reportable business segments: Airlines
Transportation Operations and Others.

Industry Profiles
Table 19: China Southern Airlines Co Ltd: Annual Financial Ratios

Key Ratios 2016 2017 2018 2019 2020
Growth Ratios
Sales Growth % 2.98 11.15 12.38 7.45 -40.02
Operating Income Growth % -5.48 -27.56 -4.02 25.87 -206.32
EBITDA Growth % 0.08 -11.50 3.03 53.99 -64.26
Net Income Growth % 35.01 18.18 -51.43 -8.81 -510.87
EPS Growth % 29.19 16.32 -58.55 -15.72 -411.54
Working Capital Growth % 5.34 -4.57 15.33 32.10 -28.01
Equity Ratios
EPS (Earnings per Share) CNY 0.47 0.55 0.23 0.19 -0.59
Dividend per Share CNY 0.10 0.10 0.05
Book Value per Share CNY 4.43 4.95 5.32 5.23 4.54
Gross Margin % 37.12 32.85 30.19 34.07 31.26
Operating Margin % 11.05 7.20 6.15 7.20 -12.77
Net Profit Margin % 4.39 4.66 2.02 1.71 -11.72
Profit Markup % 59.04 48.92 43.25 51.67 45.48
PBT Margin (Profit Before Tax) % 6.66 6.94 3.04 2.63 -16.42
Return on Equity % 11.61 11.94 4.44 4.12 -15.59
Return on Capital Employed % 9.59 6.17 5.41 5.26 -5.12
Return on Assets % 2.61 2.84 1.24 0.95 -3.43
Return on Working Capital % -23.45 -17.80 -14.81 -14.12 20.85
Liquidity Ratios
Leverage Ratios
Efficiency Ratios

Industry Profiles
Table 20: China Southern Airlines Co Ltd: Key Employees

Chen Wei Hua Chief Legal Adviser Senior Management
Chen Wei Hua General Counsel Senior Management
Chen Wei Hua General Manager Legal Department Senior Management
Cheng Yong Executive Vice President Senior Management
Feng Hua Nan Chief Operating Officer Flight Safety Senior Management
Gu Hui Zhong Director Non Executive Board
Han Wen Sheng Director Executive Board
Han Wen Sheng Executive Vice President Executive Board
Jiao Shu Ge Director Non Executive Board
Li Shao Bin Chief Training Officer Senior Management
Li Tong Bin Chief Engineer Senior Management
Li Tong Bin Executive Vice President Senior Management
Luo Lai Jun Executive Vice President Senior Management
Luo Ming Hao Chief Pilot Senior Management
Ma Xu Lun Chairman Executive Board
Ma Xu Lun President Executive Board
Ren Ji Dong Executive Vice President Senior Management
Su Liang Chief Economist Senior Management
Tan Jin Song Director Non Executive Board
Wang Zhi Xue Executive Vice President Senior Management
Wu Rongxin Chief Engineer Senior Management
Wu Ying Xiang Executive Vice President Senior Management
Xie Bing Secretary Senior Management
Yao Yong Chief Accounting Officer Senior Management
Yao Yong Chief Financial Officer Senior Management
Yao Yong Executive Vice President Senior Management
Zhang Zheng Rong Executive Vice President Senior Management
Zheng Fan Director Non Executive Board
Zhu Hai Long Chief Operating Officer Senior Management

Industry Profiles
8.6. All Nippon Airways Co Ltd
All Nippon Airways Co Ltd (ANA) is a Japanese passenger, cargo and airmail transportation services provider.
The company offers air transportation services, which include airport ground support, aircraft maintenance,
buying, selling and leasing of aircraft and aircraft parts, cargo and logistics and in-flight catering and operates
full service and low cost carriers. It also offers travel packages which include ticketing and accommodation
services. ANA conducts aircraft trading under its subsidiary, All Nippon Airways Trading Co Ltd, which operates
duty-free airport shops in Japan. The company operates service routes across Europe, North America and Asian
regions. ANA is headquartered in Tokyo, Japan
8.6.2. Key Facts
Table 21: All Nippon Airways Co Ltd: key facts
Head office: 1-5-2 Higashi-Shinbashi Minato-ku, Tokyo, Tokyo, Japan

Website: www.ana.co.jp
Financial year-end: April

Industry Profiles
Table 22: All Nippon Airways Co Ltd: Key Employees

Ado Yamamoto Director Non Executive Board
Hiroyuki Kunibu Director Public Relations Senior Management
Ichiro Fukuzawa Director Executive Board
Ichiro Fukuzawa Executive Vice President Executive Board
Izumi Kobayashi Director Non Executive Board
Katsuji Kitazawa Deputy Director, Marketing & Sales Planning Management
Naoto Takada Director Executive Board
Naoto Takada Executive Vice President Executive Board
Nozomu Kano Director Non Executive Board
Shinichiro Ito Chairman Executive Board
Shinya Katanozaka Chief Executive Officer Executive Board
Shinya Katanozaka Director Executive Board
Shinya Katanozaka President Executive Board
Shosuke Mori I Director Non Executive Board
Shuichi Fujimura Director Alliances and International Affairs Senior Management
Chief Promotion Officer - Tokyo Olympic and
Takashi Shiki Senior Management
Paralympic Games
Toyoyuki Nagamine Director Executive Board
Toyoyuki Nagamine Senior Vice President Executive Board
Yuji Hirako Director Executive Board
Yuji Hirako Executive Vice President Executive Board
Yutaka Ito Director Executive Board
Yutaka Ito Executive Vice President Executive Board

Industry Profiles
9. Macroeconomic Indicators
9.1. Country data
Table 23: Asia-Pacific exchange rate, 2017–21
Year Exchange rate (€/$)

2017 1.1320
2018 1.1810
2019 1.1200
2020 1.1405
2021 1.1832

Industry Profiles
Appendix
Methodology
MarketLine Industry Profiles draw on extensive primary and secondary research, all aggregated, analyzed, cross-
checked and presented in a consistent and accessible style.
Review of in-house databases – Created using 250,000+ industry interviews and consumer surveys and supported by
analysis from industry experts using highly complex modeling & forecasting tools, MarketLine’s in-house databases
provide the foundation for all related industry profiles
Preparatory research – We also maintain extensive in-house databases of news, analyst commentary, company profiles
and macroeconomic & demographic information, which enable our researchers to build an accurate market overview
Definitions – Market definitions are standardized to allow comparison from country to country. The parameters of each
definition are carefully reviewed at the start of the research process to ensure they match the requirements of both the
market and our clients
Extensive secondary research activities ensure we are always fully up-to-date with the latest industry events and trends
MarketLine aggregates and analyzes a number of secondary information sources, including:
- National/Governmental statistics
- International data (official international sources)
- National and International trade associations
- Broker and analyst reports
- Company Annual Reports
- Business information libraries and databases
Modeling & forecasting tools – MarketLine has developed powerful tools that allow quantitative and qualitative data to
be combined with related macroeconomic and demographic drivers to create market models and forecasts, which can
then be refined according to specific competitive, regulatory and demand-related factors
Continuous quality control ensures that our processes and profiles remain focused, accurate and up-to-date

Industry Profiles
9.2. Industry associations
9.2.1. International Air Transport Association
Travel Industry Designator Service, 800 Place Victoria, P.O. Box 113, Montreal, Quebec, H4Z 1M1, CAN
Tel.: 1 514 874 0202
Fax: 1 514 874 1753
www.iata.org
9.2.2. Civil Aviation Administration of China
155 Dongsi Xidajie, Beijing 100710, CHN

Tel.: 86 10 6409 1114
www.caac.gov.cn
9.2.3. Department of Infrastructure & Transport
GPO Box 594, CANBERRA ACT 2601, AUS

Tel.: 61 2 6274 7111
Fax: 61 2 6257 2505
www.infrastructure.gov.au
9.2.4. Directorate General for Civil Aviation
Aurbindo Marg, Opp. Safdarjung Airport, New Delhi 110 003, IND
Tel.: 91 11 2462 2495
Fax: 91 11 2462 9221
dgca.nic.in
9.3. Related MarketLine research
9.3.1. Industry Profile
Global Air Freight

Air Freight in Europe

Industry Profiles
About MarketLine
In an information-rich world, finding facts you can rely upon isn’t always easy. MarketLine is the solution.
We make it our job to sort through the data and deliver accurate, up-to-date information on companies, industries and
countries across the world. No other business information company comes close to matching our sheer breadth of
coverage.
And unlike many of our competitors, we cut the ‘data padding’ and present information in easy-to-digest formats, so
you can absorb key facts in minutes, not hours.
What we do
Profiling all major companies, industries and geographies, MarketLine is one of the most prolific publishers of business
information today.
Our dedicated research professionals aggregate, analyze, and cross-check facts in line with our strict research
methodology, ensuring a constant stream of new and accurate information is added to MarketLine every day.
With stringent checks and controls to capture and validate the accuracy of our data, you can be confident in MarketLine
to deliver quality data in an instant.
For further information about our products and services see more at: http://www.marketline.com/overview/
Disclaimer
All Rights Reserved.
No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means,
electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher,
MarketLine.
The facts of this report are believed to be correct at the time of publication but cannot be guaranteed. Please note that
the findings, conclusions and recommendations that MarketLine delivers will be based on information gathered in good
faith from both primary and secondary sources, whose accuracy we are not always in a position to guarantee. As such
MarketLine can accept no liability whatever for actions taken based on any information that may subsequently prove to
be incorrect.

Asia Pacific Air Freight 155774

Uploaded by

Copyright:

Available Formats

Asia Pacific Air Freight 155774

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Asia Pacific Air Freight 155774

Uploaded by

Copyright:

Available Formats

MarketLine Industry Profile

Air Freight in Asia-Pacific

Reference Code: 0200-2347

Publication Date: July 2022

Primary NAICS: 481112

Secondary NAICS: 481212

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 1

1.1. Market value

1.2. Market value forecast

1.3. Category segmentation

1.4. Geography segmentation

1.5. Market rivalry

1.6. Competitive Landscape

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 2

1.1. Market value ................................................................................................................................................2

1.2. Market value forecast ..................................................................................................................................2

1.3. Category segmentation................................................................................................................................2

1.4. Geography segmentation.............................................................................................................................2

1.5. Market rivalry...............................................................................................................................................2

1.6. Competitive Landscape ................................................................................................................................2

2.1. Market definition .........................................................................................................................................7

2.2. Market analysis ............................................................................................................................................7

3.1. Market value ................................................................................................................................................9

4.1. Category segmentation..............................................................................................................................10

4.2. Geography segmentation...........................................................................................................................12

5.1. Market value forecast ................................................................................................................................13

6. Five Forces Analysis 14

6.1. Summary ....................................................................................................................................................14

6.2. Buyer power...............................................................................................................................................16

6.3. Supplier power ...........................................................................................................................................17

6.4. New entrants .............................................................................................................................................19

6.5. Threat of substitutes ..................................................................................................................................21

6.6. Degree of rivalry.........................................................................................................................................22

7.1. Who are the leading players? ....................................................................................................................24

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 3

7.2. What are the strengths/weaknesses of leading players? ..........................................................................24

7.3. What strategies do leading players follow? ...............................................................................................24

7.4. What impact is COVID-19 having on the sector? .......................................................................................25

8.1. Air China Ltd...............................................................................................................................................26

8.2. Air Incheon Co Ltd......................................................................................................................................29

8.3. Asiana Airlines Inc ......................................................................................................................................31

8.4. Cathay Pacific Airways Ltd..........................................................................................................................35

8.5. China Southern Airlines Co Ltd...................................................................................................................39

8.6. All Nippon Airways Co Ltd ..........................................................................................................................42

9.1. Country data ..............................................................................................................................................44

9.2. Industry associations..................................................................................................................................46

9.3. Related MarketLine research .....................................................................................................................46

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 4

Table 3: Asia-Pacific air freight sector category segmentation: $ Asia-Pacific, 2016-2021 10

Table 4: Asia–Pacific air freight sector geography segmentation: $ billion, 2021 12

Table 5: Asia-Pacific air freight sector value forecast: $ billion, 2021–26 13

Table 6: Air China Ltd: key facts 26

Table 7: Air China Ltd: Annual Financial Ratios 27

Table 8: Air China Ltd: Key Employees 28

Table 9: Air Incheon Co Ltd: key facts 29

Table 10: Air Incheon Co Ltd: Key Employees 30

Table 11: Asiana Airlines Inc: key facts 31

Table 12: Asiana Airlines Inc: Annual Financial Ratios 33