CAL to buy 25% of China Cargo

CAL to buy 25% of China Cargo

TAIPEI (AFP): Taiwan's China Airlines (CAL) is expected to buy
a 25 percent stake in Shanghai-based China Cargo Airlines in
September at the earliest, CAL officials said Friday.

"Our target is to finalize the acquisition before the end of
this year, but we don't rule out the possibility of closing the
deal as early as September," said a CAL official who declined to
be named.

"With the acquisition, we hope to turn Taiwan into an air
cargo hub for China and the rest of the world once the island
opens full direct links with Beijing," he said.

The US$64-million deal with China Eastern Airlines, the
largest shareholder of China Cargo Airlines, will have to be
approved by both Chinese and Taiwanese authorities before it can
go ahead.

China Cargo Airlines currently operates 12 international
routes between China and major countries and areas including the
United States, Europe, Japan and Hong Kong.

CAL has recently joined two other Taiwanese airlines, EVA
Airways and Far Eastern Air Transport Corp, and Taiwan Airport
Service Co. to form a 221.45 million yuan ($27 million) cargo
terminal joint venture with Xiamen city in southern China.