News
Air China sells cargo unit for US$358 million
September 7th 2018
Air China, has announced plans to sell its 51% shareholding in Air China Cargo to sister unit, Capital Holding, for US$358 million amid uncertainties in international trade and cutthroat competition. Read More »
Following the divestment, Cathay Pacific Airways will hold the remaining 49% in the carrier. Capital Holding is a wholly-owned subsidiary of state-owned China National Aviation Holding Corporation, Air China’s largest shareholder at 53.5%.
“Following the disposal of Air China Cargo, the Company will concentrate its resources on the air passenger transport business to increase the competitiveness while mitigating the impact of intensified competition in the cargo transportation market and uncertainty about the international trade situation on the company’s business performance,” said Air China.
The cargo business in China has been affected by substantial exchange rate fluctuations, Sino-U.S. trade conflicts and home grown competition from SF Express and YTO Express.
In 2017, China Eastern Air Holding sold approximately 50% of its freight unit to four firms including Legend Holdings and Global Logistic Properties in.
China Southern Airlines is the only one of the ‘Big Three’ to maintain a dedicated cargo subsidiary, at least for now. Orient Aviation understands the Guangzhou-headquartered airline group is considering the sale of China Southern Airlines Cargo to a dedicated Mainland freight firm.
In separate news, China Southern this week took up 50% of MTU Maintenance Zhuhai, which was previously held by parent company, China Southern Air Holding.
