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Eva Airways, the Taiwanese airline owned by the Evergreen Group, is to invest US$2.64 million to acquire 25 percent of the increased capital issued by Shanghai Air Cargo International.
Eva sees its investments in Shanghai Air Cargo as a springboard to help it jump into mainland China¨s fledgling air cargo market, especially in the eastern China region.
In June last year, Eva Airway obtained approval from the Investment Commission under the Ministry of Economic Affairs to invest $3.88 million to acquire a 25 percent stake in Shanghai Air Cargo. At the same time, the Evergreen Group acquired a 20 percent stake.
At present, Shanghai Airlines has a 55 percent stake in Shanghai Air Cargo with the remaining 45 percent going to Evergreen Group.
Shanghai Air Cargo provides air-cargo transportation services to such cities as Frankfurt, Macau, Hong Kong, Osaka, Bangkok and Ho Chi Minh City.
To fend off price competition, since the beginning of this year Shanghai Air Cargo has changed its operating strategy to concentrate on the European routes, especially increasing services to Frankfurt.
Eva Airways posted a net loss for the six months ended June 30 of US$51.2 million, wider than the $25.61 million loss in the year-earlier period. Revenue fell 1.4 percent to $1.34 billion. |
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