SIA Cargo buys 16pc in China Cargo Airlines

SINGAPORE Airlines Cargo has signed an agreement to acquire 16 per cent of China Cargo Airlines Co Ltd, subject to regulatory and other approvals at an investment value of CNY328 million (US$49.1 million).

China Cargo Airlines is a Shanghai-based company with an initial registered capital of CNY950 million with a view to being reorganised into a limited liability Chinese-foreign equity joint venture company with a capital increase of CNY3 billion.

Following restructuring from its original equity split of China Eastern Airlines holding 70 per cent stake and 30 per cent owned by COSCO. The new structure will now stand as China Eastern at 51 per cent, COSCO 17 per cent, SIA Cargo and EVA Airways' affiliate Concord Pacific Ltd holding 16 per cent each.

SIA Cargo's president Tan Kai Ping, said: "We are excited about the joint venture. It affords SIA Cargo greater participation in the booming cargo transportation sector in China and we look forward to working closely with our new partners."

China Cargo Airlines operates a fleet of 13 aircraft comprising three Airbus A300 freighters, two Boeing 747-400 freighters, three Boeing 777 freighters and five McDonnell Douglas MD-11 freighters.

Its global route network extends to 26 destinations outside Shanghai, covering major cargo ports in China, Asia, Europe and the United States.
(Source:www.schednet.com)