SIA partners with China Eastern in cargo industry

by Alister POOLE on December 22, 2010

Singapore Airlines, China Eastern and others have partnered to boost services in Shanghai.

SIA and China Eastern Airlines, a subsidiary of China Ocean Shipping Group and Eva Airways, announced that they will join hands to invest over $2 billion in their China Cargo Airlines. The move will also see the acquisition of two other freight companies and help to boost both airlines’ presence in China’s large air cargo sector.

China Eastern Airlines, which is based in Shanghai, joins the bid following its acquisition of Shanghai Airlines; a move that has also increased local presence. The carrier will begin competing with rival cargo carriers such as Air China and Cathay Pacific Airlines on 31 December.

Kelvin Lau of Daiwa said that both firms are going to save on expenses by merging into a single company, as opposed to continuing to operate as three separate entities. He also said that as China’s economy and exports continue to grow, imports have also increased.

Forecasters have said that China’s foreign trade could reach as high as $2.9 trillion towards the close of 2010. This would make it the world’s largest exporter and second biggest importer.

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