Taiwan carrier to sell stake in Yangtze Express

Taiwan's China Airlines is to sell its 25 percent stake in China's regional air cargo carrier Yangtze River Express back to the HNA Group, China's fourth-largest airline group, reported Dow Jones Newswires.

China Airlines, Taiwan's largest airline by revenue, said the transaction is valued at US$46 million, unchanged from the price China Airlines paid when it acquired the stake in 2006.

The Taiwanese airline said HNA sought to buy back the stake in July, but didn't provide a reason for its decision. HNA Group is the parent of Shanghai-listed Hainan Airlines.

Two Taiwan shipping companies, Yang Ming Marine Transport Corp and Wan Hai Lines, which joined China Airlines in buying stakes in Yangtze River Express in 2006, will also sell their stakes back to HNA Group.

China Airlines said it had acquired the stake in Yangtze River Express to secure revenue from China's rapidly expanding air cargo market.

"We wanted to enter the Chinese market via Yangtze River Express before the direct air links between Taiwan and China," China Airlines spokesman Hamilton Lieu said, adding the acquisition has helped China Airlines complete its strategic goal.

Taiwan and China allowed direct cross-strait flights in 2008.
(Source:www.cargonewsasia.com)