China Eastern Airlines has sold its shareholding in loss-making freighter operator China Cargo Airlines.
The carrier has agreed to a deal to sell its 100 per cent shareholding to Eastern Logistics, which owns 83 per cent of China Cargo Airlines.
Eastern Logistics itself has been bought by Eastern Airlines Industry Investment Company, a wholly-owned subsidiary of China’s state-owned CEA Holdings, for RMB2.4 billion ($349 million).
China Eastern explains that the sale will allow it to focus on the passenger segment and as is currently the case, China Cargo Airlines will continue to manage belly space and freight operations on China Eastern’s passenger flights.
