EVA Airways eyes piece of Shanghai pie

EVA AIRWAYS plans to spend US$2.7 million acquiring 25 per cent of Shanghai Air Cargo International, in a bid to gain a foothold in the eastern China market, reports the UK's Aircargo News.

In June last year, Eva Airways' shareholder Evergreen purchased a 20 per cent stake in the mainland cargo carrier, after EVA was granted approval from the Investment Commission under the Ministry of Economic Affairs to invest in Shanghai Air Cargo.

This means that Shanghai Airlines now holds a 55 per cent interest in Shanghai Air Cargo, while the remaining 45 per cent is held by the Evergreen Group.

Shanghai Air Cargo operates flights to Frankfurt, Macao, Hong Kong, Osaka, Bangkok and Ho Chi Minh City.

The development comes despite EVA Airways last month posting a larger than expected loss in the second quarter owing to a drop in airfreight demand.

The carrier's net loss amounted to TWD1.37 billion (US$41.46 million) in the three months ended June 30, compared with $1.07 billion a year earlier.

Taiwan's airports handled 7.2 per cent less cargo in the first half of the year - the decline was attributed to a shift in production to the mainland.