China Airlines divests stake in Yangtze River Express Airlines
China Airlines, Yang Ming Marine Transport Corp and Wan Hai Lines terminated their respective investments in Yangtze River Express Airlines, with China Airlines selling its 25% stake in the cargo airline and the other two companies selling their respective 12% and 6% stakes back to HNA Group (AFP/Dow Jones/Cargonewsasia/Shanghai Daily, 24-Aug-2010). The investment was previously Taiwan's sole holding in a mainland carrier. China Airlines, which acquired its stake in 2006 for approximately USD46 million (the same value as the current transaction), reportedly commented that the sale was due to "lacklustre performance" by the carrier. China Airlines had acquired the stake in Yangtze River Express to secure revenue from China's rapidly expanding air cargo market, with spokesman, Hamilton Lieu, commenting: "We wanted to enter the Chinese market via Yangtze River Express before the direct air links between Taiwan and China." He added that the acquisition had helped China Airlines complete its strategic goal.