SIA Cargo buys stake in China Cargo Airlines
Singapore Airlines Cargo (SIA Cargo) said Monday it has acquired a 16 percent stake in China Cargo Airlines Co., joining China Eastern Airlines, the COSCO Group and Concord Pacific as shareholders in the joint venture.
SIA Cargo, a subsidiary of Singapore Airlines, confirmed the deal in a note to the Singapore Stock Exchange, adding that it is awaiting regulatory approvals.
Channelnews Asia reported Monday that SIA Cargo will inject roughly $50 million into the joint venture. Shanghai-based China Eastern is the majority shareholder, with 51 percent.
“We are excited about the joint venture,” said SIA Cargo President Tan Kai Ping. “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 – three Airbus A300 freighters, two Boeing 747-400 freighters, three Boeing 777 freighters and five MD-11 freighters.