CHINA: Air China raises Air China Cargo stake

Air China has bought a 25 per cent stake of Air China Cargo for nearly US$116 million from Gold Leaf Enterprise Holdings and raised its shareholdingin the company to 76 per cent. Air China Cargo is China’s biggest air cargo airline by capacity and operates mail and express delivery services with its fleet of four […]


Air China has bought a 25 per cent stake of Air China Cargo for nearly US$116 million from Gold Leaf Enterprise Holdings and raised its shareholdingin the company to 76 per cent.

Air China Cargo is China’s biggest air cargo airline by capacity and operates mail and express delivery services with its fleet of four 747-200 freighters and eight 747-400 combis. It also markets the belly space on 60 Air China passenger aircraft. It posted a net loss of RMB300 million ($41.1 million) in the first six months of 2007 but began to make a turnaround in August. It is expected to earn a profit in 2008.

Air China expects a further growth in the Chinese air cargo business. The company plans to increase investment in the cargo sector as a strategic move by bringing into Air China Cargo more aviation industry-related expertise.

The cargo airline is also 24 per cent owned by Beijing Capital Airports Holding, which operates Beijing’s internationalairport.