China Eastern subsidiary, Eastern Air Logistics transferred to CEA Holdings

China Eastern Airlines completed its divestiture from its freight subsidiary, Eastern Air Logistics, on February 8, 2017, according to a filing by China Eastern Airlines on the Shanghai and Hong Kong Stock Exchanges. 

In January, China Eastern Airlines shareholders gave their approval to separate the airline separation from its air freight and logistics subsidiary, Eastern Air logistics. The deal valued at US$353 million, transfers ownership of Eastern Air Logisitcs (EAL) from China Eastern Airlines, to Eastern Airlines Industry Investment, a wholly-owned subsidiary of China Eastern’s parent group, CEA Holding.

EAL controlled most of China Eastern’s main-deck cargo business through an 83% stake in China Cargo Airlines – a lossmaking venture that has failed to turn a profit in recent years. As is currently the case, China Cargo airlines will continue to manage belly space and freight operations on China Eastern’s passenger flights.

No longer under the auspices of China Eastern Airlines, Eastern Air Logistics is expected to pursue a more open development, and will likely continue its venture into businesses unrelated to airline operations.

Those interested in learning more about air freight in 2017, should join us at Cargo Facts Asia in Shanghai, 25 – 26 April.  To register, or for more information, go to CargoFactsAsia.com