China Eastern Airlines expects deal with Taiwan carrier soon.HONG KONG Hong Kong (hŏng kŏng), Mandarin Xianggang, special administrative region of China, formerly a British crown colony (2005 est. pop. 6,899,000), land area 422 sq mi (1,092 sq km), adjacent to Guangdong prov. , Aug. 29 Kyodo China Eastern Airlines China Eastern Airlines Corporation Limited (Simplified Chinese: 中国东方航空股份有限公司) (SSE: B>600115 said Wednesday it expects to sign a deal next month to sell a stake in its cargo unit to Taiwan's China Airlines (CAL). Under the proposal, CAL will take a 25% stake in China Cargo Airlines China Cargo Airlines is a cargo airline based in Shanghai, People's Republic of China. It is China's first all-cargo airline operating dedicated freight services using China Eastern Airlines route structure. , China's only dedicated freight carrier, from Shanghai-based China Eastern Airlines. The interest of China Eastern Airlines in the enlarged share capital of China Cargo will be diluted to 55% from 70% if the agreement is struck. The other shareholder, China Ocean Shipping Co., will reduce its stake to 20% from 30%. The planned teaming up of China Eastern Airlines with CAL sees the two carriers' bid to grab shares in China's growing air cargo air cargo: see aviation. market and their preparation for possible opening of direct cross-strait air links. So far, Taiwan still bans direct transportation links with China. The deal is awaiting approvals from the governments on both sides of the Taiwan Strait Taiwan Strait, Chinese Taiwan haixia, arm of the Pacific Ocean, between China's Fujian coast and Taiwan, linking the East and South China seas. It contains the Pescadores. It is also called the Formosa Strait. , China Eastern Airlines told a press conference in Hong Kong on its half-year results. The partnership, if approved, will also be unprecedented for the air industries on both sides of the strait. Meanwhile, the chairman of China Eastern Airlines, Ye Yigan, said the company plans to run a route from Taipei to Shanghai through Hong Kong to expand its cargo business. ''The group plans to launch a route from Taipei to Shanghai via Hong Kong so as to obtain cargo consignments from Taipei to Shanghai,'' Ye said in a statement of the company's interim results. But Ye did not disclose details of the planned operation, nor when the route can begin running. The carrier also said it will seek to improve its sales network and strengthen Shanghai's position as a cargo hub in eastern China. ''The group plans to collect international cargo from other cities in China China is a geographical area encompassing multiple territories, under two states. You may be looking for:
In the statement, the airline also said its holding company, Eastern Air Group Co., is negotiating with China Yunnan Airlines China Yunnan Airlines (Chinese: 中国云南航空公司; pinyin: Yúnnán Hángkōng Gōngsī) was an airline based in the People's Republic of China. and China Northwest Airlines China Northwest Airlines (中国西北航空公司) was an airline based in the People's Republic of China. It started operations in 1989. In 2002, the airline, along with China Yunnan Airlines merged with China Eastern Airlines. concerning a merger and restructuring proposal. The Hong Kong-listed China Eastern Airlines reported a 65.47% fall in net profit for the first six months of this year to 70.33 million yuan (about US$8.51 million), from the 203.68 million yuan in the same period a year earlier. |
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