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SIA Cargo to Acquire Stake in China Cargo Airlines

Travel News Asia Latest Travel News Podcasts Videos Tuesday, 21 December 2010

Singapore Airlines Cargo has signed an agreement to acquire 16% of the equity interest in China Cargo Airlines, subject to regulatory and other approvals.

China Cargo Airlines is a Shanghai-based company incorporated in the Peoples Republic of China, with an initial registered capital of RMB950 million. It was 70% owned by China Eastern Airlines and 30% owned by China Ocean Shipping (Group) Company (COSCO).

Following an investment agreement signed in Shanghai, the parties will seek approvals for China Cargo Airlines to be re-organised into a limited liability Chinese-foreign equity joint venture company. Its registered capital will increase to RMB3 billion.

SIA Cargos investment in the re-organised company will amount to RMB328 million. The new shareholding structure of China Cargo Airlines will be as follows:

China Eastern Airlines: 51%
COSCO: 17%
Concord Pacific Limited (EVA Airways Affiliate Company): 16%
SIA Cargo: 16%

SIA Cargos President, Mr 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.

See recent travel news from: Travel News Asia, SIA, Singapore Airlines, Cargo, China Cargo

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