China Eastern unveils cargo consolidation plan

China Eastern A330-300. Photo: By Rob Finlayson.

China Eastern Airlines revealed its plan to consolidate its cargo subsidiaries as the merger process with Shanghai Airlines accelerates (ATW Daily News, Sept. 30).

CEA’s three cargo subsidiaries—China Cargo Airlines, Shanghai Airlines Cargo and Great Wall Airlines—will be consolidated into one cargo venture. CEA, with a 51% share, will be the controlling stakeholder. The other stakeholders include China Ocean Shipping (Group) Co., Eva Air and Singapore Airlines Cargo.

Eva noted it would invest CNY328 million ($49.1 million) to purchase a 16% stake in the new cargo venture. An industry insider told ATW that China Ocean Shipping (Group) Co. may hold a 17% stake and SIA Cargo would hold the remaining 16%.