Taiwan’s EVA Airways plans to acquire a 16% stake in Chinese air cargo company China Cargo Airlines for RMB328 million (US$49.3 million) to boost its cargo business in China.
EVA Airways’ announcement comes after China Cargo said it would be integrating with another Chinese cargo company, Shanghai Airlines Cargo, of which EVA Airways owns a 25% stake.
EVA Airways expects its revenue from the cargo business to grow 70% this year from last year mainly because of the global economic recovery. Such growth would increase the contribution of its cargo business to total yearly revenue to about 40% this year, up from 33% last year.
Taipei Times reports that the company’s revenue grew about 49% in the first three quarters of the year.