China Eastern expects air cargo deal with SIA, EVA Air soon

China Eastern Airlines (CEA.NYSE, 600115.SH, 0670.HK) said it expects to reach an agreement on how to combine its air cargo ventures this month following its acquisition of Shanghai Airlines last year, Bloomberg reported. China Eastern plans to combine its main freight business with two other cargo carriers in which Singapore Airlines (C6L.SIN) and Taiwan-based EVA Airways (2618.TPE) hold stakes to improve capacity utilization. The airline hopes the consolidation will help it compete against Air China-Cathay Pacific Airways’ cargo service joint venture. China Eastern is due to receive its parent company’s 51% stake in Great Wall Airlines this year. Singapore Airlines owns 25% of Great Wall Airlines and Temasek owns another 24%. EVA Air owns 25% of a cargo venture with Shanghai Airlines.