The CAAC (Civil Aviation Administration of China) Central and Southern Regional Administration has checked and issued an initial approval to establish China Air Cargo, a cargo carrier founded jointly by China's Joy Air Holding Co., Ltd., Guangzhou Donlinks Group Ltd. and Beijing Fuda Asset Management Co., Ltd., according to a notice released on CAAC's official website on December 8.

According to the notice, the start-up carrier has a registered capital of 500 million yuan, in which Joy Air Holding Co., Ltd. will hold a 45% stake with a 225 million yuan investment.

China Air Cargo will be a limited company with Mr. Wu Wei, Vice-President of Joy Air (JR) in charge of its establishment.

Based at Guangzhou Baiyun International Airport (CAN), the new cargo airline will be licensed for domestic (including Hong Kong/Macao/Taiwan) and international cargo & mail air transportation business, using Boeing 757 aircraft and MA600 freighters.

In the initial stage, pilots, dispatchers, maintenance staff and other professionals will be introduced from Joy Air.

CAAC has begun soliciting submissions on China Air Cargo and said that the approval would be granted unless it was informed of reasonable grounds to reconsider the plan before December 21, 2015.