(Yicai Global) Sept. 2 -- JD.com's freight airline has received its operating license from China’s aviation authorities, a move that will give the Chinese e-commerce giant better control over deliveries and enhance its competitiveness amid intense rivalry in the logistics sector.

Jiangsu Jingdong Cargo Airlines was granted its air operator certificate by the General Administration of Civil Aviation of China's East China Regional Administration on Aug. 31, Yicai Global has learned.

The carrier, which will operate out of Nantong Xingdong International Airport in eastern Jiangsu province, will handle both domestic and international air freight.

It will first focus on the economic hubs of the Yangtze River Delta, which encompasses Shanghai and the surrounding area, the Circum-Bohai Sea Region in northeastern China and the Pearl River Delta, which includes Guangdong and Shenzhen, before expanding to cover all major Chinese cities by the end of 2025, according to a previously released plan.

As for overseas services, the firm will start with flights to Southeast Asia, Japan and South Korea before adding more long-distance routes to Europe and North America. It aims to have established a global network of cargo routes by the end of 2025.

Previously, JD.com’s logistics arm JD Logistics had to charter flights or share bellyholds with other courier companies. Rivals SF Express, China Postal Express & Logistics and YTO Express already have their own air cargo fleets.

Jingdong Cargo is a joint venture between Suqiang Jingdong Zhenyue Enterprise, which is owned by JD.com’s founder Richard Liu and two executives Li Yayun and Zhang Pang, and Nantong Airport Group. The former invested CNY450 million (USD65.2 million) for a 75 percent share and the latter contributed CNY150 million for the remainder of the equity. Beijing-based JD.com does not have a stake in the firm.

JD.com’s share price [NASDAQ:JD] closed down 0.6 percent at USD63.11 yesterday.

Editor: Kim Taylor