In January 2019, the company and Henan Civil Aviation Development & Investment Co., Ltd. (“Henan Civil Aviation”) co-founded a joint venture in Luxembourg, with CTS International holding a 35% share and Henan Civil Aviation holding 65%. The joint venture will engage in cross-border logistics, airline operations, supportive storage and logistics, and other business.

As a state-owned enterprise under the administration of the Henan provincial government, Henan Civil Aviation is an important investment platform for the province to develop its aviation industry. In early 2014, Henan Civil Aviation purchased a 35% share of Cargolux Airlines International to become an air carrier. Since then, the two partners have ushered in a new chapter in overall strategic cooperation. With this joint venture as a key vehicle for cooperation, they will make an overall plan for transport capacity, complement each other in resources, and join hands to explore the potential and opportunities of overseas markets.

Since the beginning of 2018, the company has been committed to the strategic goal of network internationalization by following the strategic implementation paths of “focusing on the three areas” and the “two drivers.” With capital as a link, the Luxembourg joint venture will solidify the advantages of airlines in transport capacity, and it will work to enhance the overall competitiveness of the logistics industry. It will fully tap into the airline resources of Cargolux Airlines International and the opportunities of existing market resources in overseas expansion, and it will work to expand air freight forwarding, storage logistics, customs clearance and delivery, as well as other services in Europe and China, seeking to secure a central position for CTS International as an airline cargo collection hub port in Europe. The establishment of the Luxembourg joint venture will exert major and far-reaching impacts on the company’s overseas network layout and strategic structural transformation.

During the new year, the company will work to carry out its overseas development strategy and seek to realize the coordinated development of both domestic and foreign markets. It will embrace a client-centered service concept to improve service network and channel resource building. Information about the business contact person and collaboration window for the Luxembourg joint venture will soon be released online. All business units are expected to engage in the business coordination of offices in Luxembourg and other parts of Europe, making full use of their strategic development and transformation period to realize quality leapfrog development.