Hainan Airlines transfer shares to Taiwan companies

Four Taiwan based companies headed by China Airlines entered into agreement with Hainan Airlines on Sept 12, according to which the four Taiwan carriers will acquire 49 percent of stakes of the Yangtze River Express, a subsidiary company of Hainan Airlines.

The China Airlines, YES Logistics Corp, Yang Ming Marine Transport Corp, and Wan Hai Lines Ltd., will get 25 percent, 12 percent, 6 percent and 6 percent of stakes respectively.

China Airlines had attempted to enter Chinese mainland's aviation market early in 2002, and it even signed an intention agreement with an Eastern Airlines' subsidiary to hold 25 percent of shares. But China Airlines air crash, reshuffle of its senior management and change of Eastern Airlines' strategies have turned the agreement to a mere scrap of paper. Under such situation China Airlines switched to Hainan Airlines for negotiation and subsequently became its ally.

Yangtze River Express owns four Boeing 737-300 cargo planes, one Boeing 737-300F and now operates more than 50 airlines. China Airlines is one of the seven leading cargo carriers in the world. Its turnover of cargo transportation accounts for 40 percent of its gross turnover. Wei Xingxiong, general manger of China Airlines said the company is optimistic about Yangtze River Express's market and network. In addition China Airlines' rich experience in freight service and complete storage equipment will add muscle to the cooperation. The future of the cooperation between China Airlines and Hainan Airlines is bright, since air cargo transportation has huge potential in Chinese mainland.

By People's Daily Online