KATHMANDU, June 12: Turkish Airlines, ZTO Express and PAL Air limited signed a Memorandum of Understanding to build a Joint Venture company to operate as a Global Express/ Courier company.
The company will focus on Global e-commerce market to make strategic move into Global Express business together with the strong partnership of ZTO, the best and largest Express company from China and cross border forwarding partner PAL Air Ltd. from Hong Kong.
The Joint Venture is perceived to generate 2 billion USD of revenue in five years and growth is expected to continue gradually parallel to the e-commerce demand.
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The Istanbul New Airport will be opened by 29th of October this year and it will function as Turkish Airlines main operating hub. This mega hub, will gradually provide Turkish Cargo up to 4 million tons of cargo handling capacity, becoming one of the top five air cargo brands of the world.
“The flow of e-commerce products globally with this Joint Venture and via Istanbul Mega Hub; will provide maximum value to our customers worldwide.” said M. İlker Aycı, Chairman of the Board and the Executive Committee, Turkish Airlines.
The services of the new global express joint venture company which will be based in Hong Kong, will include all door to door logistics activities; trucking, collection & distribution, freight transportation, cross docking and final mile delivery. It will also include warehouse management, order and supply chain management when necessary.
ZTO is the world’s largest parcel distributer, by daily 28 million parcels and additionally having the widest express delivery coverage in whole China. PAL Air Ltd. on the other hand, has launched a B to C Wholesales Postal Express Service including last mile fulfillment to the Retail Express Services Providers in Hong Kong, China, Thailand, Vietnam, India and the USA.
Turkish Airlines, operating the largest global airline network in terms of reached international destinations and countries as flying over 300 destinations in 121 countries, with this step, will expand its business scope and provide a seamless service to its customers from pickup to line-haul to door-to-door delivery. At the same time ZTO, and Pal Air Ltd. will broaden their market focus from domestic China to global markets by using Turkish Airlines’ world-wide exposure and network capability.
