EVA Airways Corp (長榮航空), the nation’s No. 2 carrier, yesterday said it planned to acquire a 16 percent share of Chinese air cargo company China Cargo Airlines Ltd (中國貨運) for 328 million yuan (US$49.3 million) to boost its cargo business in China.
EVA Airways’ announcement comes after China Cargo said it would be integrating with another Chinese cargo company, Shanghai Airlines Cargo International Co Ltd (上海貨運航空), of which EVA Airways owns a 25 percent stake.
The investment aims to boost profits and to increase EVA Airways’ cargo network deployment in China, the firm said in a filing to the Taiwan Stock Exchange yesterday after its board approved the purchase.
“We are bullish about China’s cargo market. China Cargo Airlines is a large-scale cargo service provider in China and will provide us an edge [that will benefit our growth in China],” a company official said.
EVA Airways expects its revenue from the cargo business to grow 70 percent this year from last year, the official said, citing help from the global economic recovery.
Such growth would increase contribution of the cargo business to the firm’s total yearly revenue to about 40 percent this year, up from 33 percent last year, the company said.
The company’s revenue grew about 49 percent to NT$85.46 billion (US$2.87 billion) in the first three quarters from NT$57.41 billion last year.
The company’s board yesterday also agreed to promote president James Jeng (鄭光遠) to vice chairman and name vice president Chang Kuo-wei (張國煒) as president.
Chang, the youngest son of Evergreen Group (長榮集團) founder Chang Yung-fa (張榮發), returned to the airline company in September after stepping down as the carrier’s president four years ago.
Shares of EVA Airways rose 0.58 percent to NT$34.9 yesterday, while rival China Airlines Ltd (華航) increased 0.41 percent to NT$24.25. The benchmark TAIEX edged up 0.19 percent.
To many, Tatu City on the outskirts of Nairobi looks like a success. The first city entirely built by a private company to be operational in east Africa, with about 25,000 people living and working there, it accounts for about two-thirds of all foreign investment in Kenya. Its low-tax status has attracted more than 100 businesses including Heineken, coffee brand Dormans, and the biggest call-center and cold-chain transport firms in the region. However, to some local politicians, Tatu City has looked more like a target for extortion. A parade of governors have demanded land worth millions of dollars in exchange
Hong Kong authorities ramped up sales of the local dollar as the greenback’s slide threatened the foreign-exchange peg. The Hong Kong Monetary Authority (HKMA) sold a record HK$60.5 billion (US$7.8 billion) of the city’s currency, according to an alert sent on its Bloomberg page yesterday in Asia, after it tested the upper end of its trading band. That added to the HK$56.1 billion of sales versus the greenback since Friday. The rapid intervention signals efforts from the city’s authorities to limit the local currency’s moves within its HK$7.75 to HK$7.85 per US dollar trading band. Heavy sales of the local dollar by
Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) revenue jumped 48 percent last month, underscoring how electronics firms scrambled to acquire essential components before global tariffs took effect. The main chipmaker for Apple Inc and Nvidia Corp reported monthly sales of NT$349.6 billion (US$11.6 billion). That compares with the average analysts’ estimate for a 38 percent rise in second-quarter revenue. US President Donald Trump’s trade war is prompting economists to retool GDP forecasts worldwide, casting doubt over the outlook for everything from iPhone demand to computing and datacenter construction. However, TSMC — a barometer for global tech spending given its central role in the
An Indonesian animated movie is smashing regional box office records and could be set for wider success as it prepares to open beyond the Southeast Asian archipelago’s silver screens. Jumbo — a film based on the adventures of main character, Don, a large orphaned Indonesian boy facing bullying at school — last month became the highest-grossing Southeast Asian animated film, raking in more than US$8 million. Released at the end of March to coincide with the Eid holidays after the Islamic fasting month of Ramadan, the movie has hit 8 million ticket sales, the third-highest in Indonesian cinema history, Film
RSS