China Eastern Airlines will receive its parent’s stake in a cargo venture with Singapore Airlines as part of a plan to consolidate the carrier’s air-freight operations.
First know that Great Wall Air is 51% owned by China Eastern Air, 25% by Singapore Air’s cargo unit and 24% by Temasek, the Singapore state-owned investment company.
Chairman Liu Shaoyong said China Eastern has already taken over management of Great Wall Airlines. The carrier eventually plans to combine Great Wall’s operations with those of its own cargo business and those of its unit Shanghai Airlines.
BusinessWeek reports the carrier has begun to reorganize operations after buying Shanghai Air to boost its market share in its home city. China Eastern also faces increasing competition in the freight market from a planned Air China-Cathay Pacific venture.