China’s first private cargo airline is beyond redemption

China's first private cargo airline is beyond redemption

Last Tuesday, the desperate “Saul Express” was officially declared bankrupt. This also means that “Youhe Daotong” is hopeless.

Speedy Express was established in Shenzhen in 2006, the most employees claimed to be more than 80,000 people, more than 2,000 counties and cities in the country has an operational network.

In 2011, “Speedy Express” was taken over by “Youhe DaoTong Group”. In 2009, Youhe DaoTong, a larger logistics company in Shenzhen, introduced three Boeing 747-200 cargo planes to Wuhan before Shunfeng did.

Uni-Top, the airline of the Youhe DaoTong Group, claimed to have a maximum of 13 large cargo planes, which once rivaled Shunfeng. And it first flew in June 2009, half a year earlier than SF. So if we go by the “first flight date”, it is the first private all-cargo airline in China.

But Youhe’s strategy didn’t seem to be right, as international cargo was not that prosperous at that time, and “Jade Air”, “Great Wall Air” and “Galaxy Air” all ended up in failure during the same period. It did not grasp the market of “e-commerce”, but wasted money on large aircraft, which almost doomed it to failure.

Shenzhen’s economy has continued to develop at a rapid pace over the years, giving birth to many successful logistics enterprises. Good at “customs clearance” Yiya Tong has long been listed, good at “delivery of small pieces” of Shunfeng is soaring, but bought a large cargo aircraft Youhe Daotong, but gradually came to a dead end – No money, can not turn.

Youhe DaoTong has since embarked on the road of “looking for money”. Since 2016, it has continued to obtain funds from various sources with the ambition of “surpassing Shunfeng”, and almost successfully listed in 2018. In operation, it relies on “corporate cargo” and “LTL express” to really avoid the Shunfeng front, but its airline is not easy to find work – many flyers know that Its planes are often on the ground.

China's first private cargo airline is beyond redemption

Photo: Three 747-200s lying in total in Wuhan Photo: Draw the curtains

Youhe DaoTong clearly does not know how to run an airline. In the beginning, it introduced three Boeing 747-200s, which were too old and hard to find parts for, and in 2014, it started to switch to Airbus A300-600s, which required retraining from pilots to mechanics, and in 2018, it inexplicably announced the introduction of three 747-400 freighters (the last two appear to have been undelivered), doing whatever it wanted.

Youhe Daotong is clearly not well versed in air logistics either. Wuhan is in the center of China’s map, and SF has long wanted to set up a “sorting center” here, but this is for domestic business. Youhe’s cargo plane is too big for domestic operation, so it should put the big plane in Guangzhou or even in its hometown Shenzhen – however, at this time, Shenzhen is firmly held by SF.

China's first private cargo airline is beyond redemption

Photo: SF seizes e-commerce opportunity Photo: Draw the curtains

In 2017, Youhe DaoTong finally established a base in Kunming, hoping to avoid SF’s sphere of influence and use the A300 freighter to explore the South and Southeast Asian market. At that time, many foreign-owned factories in China relocated to Vietnam, India and Myanmar, and its large freighters were more suitable in moving large sets of equipment.

But it seems to be too late, because of the lack of money, in November 2019, all the cargo planes of Youhedao were grounded.

Not that fate didn’t leave a chance for Tomohawk Access. the global economy was hit hard by the outbreak of the epidemic at the end of 2019. However, the epidemic prevention supplies brought fire to air cargo, and the families counted their money until they were weak. In this case, in the spring of 2020, there was news that “Youhe Channel was going to resume flying” – in fact, there was hope that it could be “revived” if only good people would lend some money and let it fly its planes. “.

China's first private cargo airline is beyond redemption

Photo: Blurred figure of Kunming Photo: Draw the curtains

But the miracle did not happen. Youhe’s planes were either impounded by debtors or mortgaged for spare parts, and only one of Kunming’s A300s was still in the air. Because of the serious salary arrears, Youhe finally failed to borrow money after years of shortage. Its “All One Express” was closed down last year, and now the only “Sul Express” has also gone cold ……

This is basically the same as announcing the end of the road for “Youhe DaoTong”. If no one is willing to save the airline, I believe no one will be willing to save the courier network. So pull the total that China’s “first private cargo airline”, has been hopeless.

This article is from WeChat public number: pull up the curtain (ID: LaCurtain2019), author: techery

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/chinas-first-private-cargo-airline-is-beyond-redemption/
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