Taiwanese firms slated to buy stake in Yangtze Air

China Airlines (華航), Taiwan's largest carrier, is leading three companies in paying US$57 million for stakes in Yangtze River Express Airlines Co (揚子江快運航空), in the fifth investment by overseas companies in China's airfreight industry.

China Airlines said it will pay 312.5 million yuan (US$39 million) for 25 percent of Yangtze River Express, while Yang Ming Marine Transport Corp (陽明海運) and Wan Hai Lines Ltd (萬海航運) will each invest 75 million yuan for 6 percent of the freight company, according to filings yesterday to the Taiwan Stock Exchange.

The investments are part of the preparation by Taiwan's companies for direct transportation links with China. Airlines based in Taiwan are currently barred from flying scheduled passenger or cargo services to Chinese cities.