DHL launched a domestic air service in China, noting it is the first international forwarder to obtain a China Air Transport Association (CATA) license.
DHL Global Forwarding Domestic Air Freight will be the first international logistics company to offer both domestic express and domestic airfreight services in China, the company says. The move is part of DHL Global Forwarding's $20 million investment plan that includes network infrastructure, human resources development and products and services.

The license DHL obtained will permit operations within 17 Chinese cities previously served only by Chinese state-owned and local companies.

Quoting aircraft maker Boeing's World Air Cargo Forecast, DHL noted China's domestic air cargo market has become the second largest in the world with an annual growth rate forecast of 10.8% over the next two decades. The domestic airfreight market in China is expected to double by 2010 after recording 20% growth per year since 1990.