Chinese flag carrier Air China said it plans to buy the 24% stake in its cargo unit — Air China Cargo — that it doesn’t already own for $105.1 million. It is doing this in anticipation of expected growth in the country’s air cargo business.
Upon completion of the deal, Air China will wholly own Air China Cargo, whose operations include general cargo services, mail and express delivery services.
CargoNews Asia stated that Air China, together with its indirect interest through China National Aviation, now holds a 76% stake in Air China Cargo.
Air China said it plans to increase its investment in the cargo sector as a strategic move to strengthen Air China Cargo’s aviation industry experience and resources.