Taiwan's China Airlines has won approval from the island's economics ministry to invest US$47m for a 25 per cent stake in China Cargo. China Cargo is 30 per cent owned by China Eastern Airlines and 30 per cent owned by China Ocean Shipping (Group) Co. The approval was given more than a year after the two airlines decided to go ahead with the deal.
China Airlines said that it would help China Cargo expand its overseas marketing network and would also consider becoming involved in the venture's management. For its part, the tie-up should give the Taiwanbased company access to the mainland cargo market. It is currently unable to fly to mainland destinations because of a Taipei government ban on direct transport links.
China Airlines' stake will be in the form of new shares in China Cargo.