China Airlines to acquire stake in mainland cargo carrier

Airline Industry Information, Sept 6, 2005

AIRLINE INDUSTRY INFORMATION-(C)1997-2005 M2 COMMUNICATIONS LTD

Taiwan's China Airlines Ltd is to acquire part of a combined 37% stake in Yangtze River Express Airlines Co, a mainland Chinese cargo carrier.

China Airlines said it will acquire the stake together with two shipping companies. The deal is reportedly the airline's second attempt to acquire a market share in the cargo market on the mainland. The purchase is subject to approval from the authorities in Taiwan and China.

China Airlines aims to acquire a 25% stake for USD39m, The Associated Press reported, while Yang Ming Marine Transport Corp and Wan Hai Lines Ltd have said they will each pay USD9.4m for 6% of the cargo carrier.

Yangtze River Express is a wholly owned subsidiary of China's Hainan Airlines Group.

((Comments on this story may be sent to aii.feedback@m2.com))