Singapore's first private cargo carrier is aiming to grab a share of the lucrative Indian and Chinese markets from established rivals.
The Civil Aviation Authority of Singapore (CAAS) confirmed it has received an application from Jett Airlines Cargo for an air operator's certificate. Investors behind Jett, which was registered in March 2005, include former Singapore Airlines (SIA) and CAAS staff, the sources told The Straits Times.
Upon receiving a green light from authorities, Jett hopes to go head-to-head in a highly competitive market with such global cargo giants as Federal Express, DHL and commercial airlines.
SIA, Korean Airlines and Lufthansa have their own freight aircraft. Many passenger airlines also carry cargo in their planes.
"It is premature to discuss details at this time," the newspaper quoted a Jett spokesman as saying.
Industry watchers estimated that the company would need as much as 100 million Singapore dollars ($62 million) in start-up funding.
The International Air Transport Association expects freight traffic to grow by five to six percent this year.
At least one other Singapore company, MyJet Asia, is also considering a cargo airline. It mainly operates chartered flights out of Seletar Airport.