China Eastern Airlines said its board members have agreed to increase investment and introduce new investors to China Cargo Airlines.
The capital injection will allow Concord Pacific Ltd, Eva Air's cargo unit, and Singapore Airlines Cargo to become shareholders of the cargo carrier, the company said in a filing to the Shanghai Stock Exchange yesterday.
China Cargo Airlines will then take over assets of Shanghai Airlines Cargo International Co and Great Wall Airlines.
Shanghai Airlines Cargo will be liquidated as a result.
China Cargo Airlines was founded in 1998 as a joint venture between China Eastern and China Ocean Shipping. China Eastern holds a 70 percent stake and China Ocean has the remainder.
