EVA Air to invest USD49m in China Eastern's cargo unit
EVA Airways Corp stated it would invest CNY328 million (USD49.3 million) in a 16% stake in China Eastern Airlines Corp’s cargo unit, China Cargo Airlines, as China Eastern restructures freight operations following its takeover of Shanghai Airlines (Taipei Times/Bloomberg/Shanghai Daily, 15-Dec-2010). EVA Airways’ announcement comes after China Cargo stated it would be integrating with Shanghai Airlines Cargo International Co Ltd, of which EVA Airways owns a 25% stake. EVA will withdraw from a venture with Shanghai Airlines as part of the agreement. The agreements pave the way for China Eastern to combine three cargo carriers following its takeover of Shanghai Airlines in Jan-2010. The carrier, earlier this month, stated it expected to reach agreements with other venture partners, including China Cargo, Shanghai Airlines Cargo International and Great Wall Airlines. EVA Airways stated expects its revenue from the cargo business to grow 70% in 2010 with cargo revenues to increase from 33% to approximately 40% of total revenue.