China Southern Air Cargo (CZ, Guangzhou) is set to be granted an operator's licence by the Civil Aviation Administration of China (CAAC) almost six months after it applied.

According to a regulatory notice announced last week, the regulator said it had now completed its initial review and was now planning to formally award it a public air transport business license. Public comments on the proposed move are due by June 3, 2021.

The wholly-owned subsidiary of China Southern Airlines (CZ, Guangzhou) has a registered capital of CNY1 billion yuan (USD149.39 million) of which 40% is cash with the remainder to come as investments. According to CAAC, China Southern Air Cargo will have three B777-Fs of which one will be leased and the two others owned.

China Southern Air Cargo will also use Guangzhou as its main hub as well as its parent's CZ code, its logo and livery, its aircraft, and its take-off and landing slots. However, once fully operational, the cargo carrier will apply for its own route authorities and slots.