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Zhengzhou aims to be an aviation hub in China, complete with Cargolux and two startup airlines

Analysis

Zhengzhou is being propelled from a sleepy backwater to one of China's new aviation hubs. Located in central China's Henan province, Zhengzhou boasts reasonably quick transfers - passengers on high-speed rail or cargo on roads - to all major parts of the country. In the first eight months of 2014, Zhengzhou was the eighth largest cargo airport in China and 17th largest for passenger traffic.

Henan Civil Aviation Development and Investment Co, HNCA, has bought 35% of Luxembourg's Cargolux, which has commenced flights to Zhengzhou. The two will also establish a Chinese JV freight carrier, initially operating to North America, but there are concerns if the two will overlap and Cargolux will lose out to its Chinese sister. On the passenger side, HNCA has supported a larger presence from China Southern Airlines, but Zhengzhou city is partnering with Hong Kong's First Eastern (which owns Japanese LCC Peach Aviation) to establish a LCC. That carrier and China Southern may also clash. There could also be conflict between China Southern's cargo operations, which link China and North America, with the JV cargo carrier. The incredible speed with which Zhengzhou and Henan are moving will undoubtedly create some casualties along the way.

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