SIA Cargo fuels China Cargo Airlines with RMB 328mln investment

The local cargo carrier's acquisition of a 16% stake in China Cargo Airlines is projected to increase the latter's registered capital to RMB3bln.

In a statement, Singapore Airlines Cargo said the airlines will seek approvals for China Cargo Airlines to be re-organised into a limited liability Chinese-foreign equity joint venture company following an investment agreement signed in Shanghai.

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

Tan Kai Ping, SIA Cargo’s President, 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.