CHINA CARGO AIRLINES GET CASH INJECTION

Dino D'Amore
By Dino D'Amore December 21, 2010 10:36

CHINA CARGO AIRLINES GET CASH INJECTION

China Eastern Airlines and China Ocean Shipping have stated they will inject funds into their joint venture China Cargo Airlines. It is hoped the CNY2.05 billion ($308 million) cash injection will be used to acquire cargo transportation businesses and related assets from two other airlines following rising competition from Beijing-based Air China.

Hong Kong- and Shanghai-listed China Eastern said Singapore Airlines Cargo, a unit of Singapore Airlines, and Concord Pacific, a wholly owned unit of Taiwan-based EVA Airways, will each invest CNY328 million to take a 16% stake in China Cargo Airlines. China Eastern will invest CNY1.05 billion in the cargo carrier and its stake will fall to 51% from 70%, while Cosco will invest CNY348.5 million and its stake will fall to 17% from 30%.

China Cargo Airlines will acquire core air cargo transportation businesses and related assets from Shanghai Cargo Airlines International and Great Wall Airlines for a preliminary combined price of CNY416.2 million.

Dino D'Amore
By Dino D'Amore December 21, 2010 10:36
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