EVA Air acquires 16% share in China Cargo

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Taiwan's EVA Air has acquired a 16% stake in Shanghai-based China Cargo Airlines for 328 million yuan ($49.2 million), and has divested its 25% stake in Shanghai Airlines Cargo International.

The move comes as China Eastern Airlines, which owns a majority stake of China Cargo, seeks to streamline its cargo operations.

China Eastern, which has acquired Shanghai Airlines, plans to merge its freight business with its other cargo ventures. The airline's parent already owns a 51% stake in cargo carrier Great Wall Airlines, and will reportedly transfer this to the carrier.

China Eastern faces competition in the cargo market from a new joint venture between Air China and Cathay Pacific Airways, which will be based in Shanghai.