China Airlines (CAL) has secured approval to become the first Taiwanese airline to buy into a Chinese carrier.

Taiwan’s Investment Commission has approved CAL’s planned purchase of 25% of cargo carrier Yangtze River Express for $40 million and the deal is now conditional in part upon Chinese authorities giving their support.

Two other non-airline companies from Taiwan are also seeking to buy into Yangtze River Express, which is majority owned by the Hainan Airlines group. Hainan will retain a 51% majority stake.

Yangtze River Express operates domestic cargo services using Boeing 737Fs and has limited international operations. ■

Source: Airline Business