China Eastern, its partner China Ocean Shipping Group (COSCO), Singapore Air's cargo unit and a unit of Taiwan-based EVA Airways will support the takeover of two other freight carriers in a deal worth 2.05 billion yuan ($307 million).
China Eastern, which will hold a 51% stake in the venture, is merging freight operations after taking over Shanghai Airlines to bolster its presence in Shanghai, the country's busiest freight centre.
Great Wall Airlines and the key assets of Shanghai Cargo Airlines would be acquired in the venture, China Eastern said.
The move will help to compete with a joint venture by Cathay Pacific Airways and Air China that is due to begin offering services on 31 December.
China Cargo has which has a fleet of 13 planes operating across Asia, Europe and the U.S.
COSCO will hold a 17 percent stake, while Shanghai Cargo Airlines and Concord Pacific, a unit of EVA Airlines, will each hold a 16 percent stake.
Continued growth in the freight market in China has led FedEx to add two new services between China and the US, which will begin in 2011. |
