Officials from China Airlines (CAL, 中華航空) and Shanghai-based China Eastern Airlines (CEA, 中國東方航空公司) yesterday denied reports that CAL is planning to purchase a 20 percent stake in CEA to develop its cargo market in China.
Hong Kong media quoted Lo Chu-ping (
Speaking to the Taipei Times, Lo denied the reports, saying that no deal has yet been reached with CAL. "We are still in the negotiation process, and no specific amount of money has been finalized at this stage," said Lo. "Even if both sides had agreed upon the deal, we would still have to seek approval from the government before the news is released," Lo said.
According to Lo, CEA, of which the Chinese government owns about 60 percent, holds a 70 percent stake in China Cargo Airlines (
Declining to comment on how much CAL might invest in CCA, Lo said that the ceiling for foreign investment in CCA would be 25 percent of the company's total shares. Denying any investment details have been finalized, Scott Shih (石炳煌), CAL spokesman, said that the cooperation deal will provide benefits for both sides.
"We can provide our large cargo fleet and management expertise ... our counterpart has the strength to access the Chinese market. That remains full of potential in terms of capacity," said Shih.
CAL, which now has 13 cargo aircraft that operate to 27 destinations worldwide, was the world's 10th largest airline in terms of global cargo capacity in 1997, and is expected to maintain the position this year, Shih said.
CEA, along with Air China (
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