Shareholders parachute-out of Chinese cargo airline
China Airlines, Yang Ming and Wan Hai set to sell shares in Yangtze River Express
China Airlines, Yang Ming Marine Transport and Wan Hai Lines are to sell their stakes in air cargo carrier Yangtze River Express Airlines.
Taiwan-based China Airlines will sell its 25% share, Yang Ming its 12% and Wan Hai its 6% stake to Hainan Air Group, also currently a major shareholder in the company.
China Airlines said its divestment would be carried out in phases over the next two or three years and all three companies are expected to recoup the original amount that they invested in the cargo carrier.
The carrier is understood to be selling because it had bought into the venture in 2005 hoping to capitalise on the fact there were no direct air links across the Taiwan Strait.
A spokesman said: “But now things have changed, as cross-Taiwan Strait business ties are getting closer than ever with direct flights having been launched.”
Yangtze River Express has been incurring losses over the last three years because of increasing fuel prices and the economic crisis of 2009, reported local media sources.
However, the China Airlines spokesman said Yangtze River Express had recently improved its financial performance.
Yangtze River Express was founded in 2002 and operates a fleet of 12 cargo aircraft in Asia, Europe and the US.
China Airlines leases two aircraft to Yangtze River Express and also carries out pilot training programmes.
Taiwan-based China Airlines will sell its 25% share, Yang Ming its 12% and Wan Hai its 6% stake to Hainan Air Group, also currently a major shareholder in the company.
China Airlines said its divestment would be carried out in phases over the next two or three years and all three companies are expected to recoup the original amount that they invested in the cargo carrier.
The carrier is understood to be selling because it had bought into the venture in 2005 hoping to capitalise on the fact there were no direct air links across the Taiwan Strait.
A spokesman said: “But now things have changed, as cross-Taiwan Strait business ties are getting closer than ever with direct flights having been launched.”
Yangtze River Express has been incurring losses over the last three years because of increasing fuel prices and the economic crisis of 2009, reported local media sources.
However, the China Airlines spokesman said Yangtze River Express had recently improved its financial performance.
Yangtze River Express was founded in 2002 and operates a fleet of 12 cargo aircraft in Asia, Europe and the US.
China Airlines leases two aircraft to Yangtze River Express and also carries out pilot training programmes.
Click here to email the editor and comment on this story
Receive our FREE news email bulletin click here
- 13 − 15 March 2012
- 22 − 23rd March 2012
- 25th April 2012 for 12 weeks.
- 12 − 14 June 2012
