Transport firms to benefit from new routes

This article was published by the Taiwan Headlines on March 20, 2006. It reports that Taiwan's three major transport firms - China Airlines Ltd., Yang Ming Marine Transport Corp., and Wan Hai Lines Ltd. - will benefit from the recent inauguration of China-based Yangtze River Express. The Yangtze River Express will soon kick off long-haul cargo routes that link to the United States and Europe.

The Yangtze River Express is a joint venture between the aforementioned three Taiwanese transport firms and China's Hainan Airlines. Because Taiwan's China Airlines has acquired a controlling stake in the venture, its high-ranking officials will assume the leading position of the Yangtze River Express.

The Yangtze River Express gained approval from China's Civil Aviation Administration in September 2005 to operate the Shanghai-Los Angeles and Shanghai-Frankfurt long-haul cargo routes, using Boeing 747-400 all-cargo aircraft. In order to avoid commercial conflicts, Taiwan's China Airlines has transferred its own Boeing 747 cargo flight transport capacities to Luxemburg Airlines.

Currently, China Airlines in Taiwan owns the world's largest Boeing 747-400 all-cargo fleet. By the end of 2006, the company will have 20 Boeing 747-400 cargo aircraft in its fleet. In view of the decline in Taiwan's cargo shipments, the company recently decided to transfer some cargo-transport capacities to the Yangtze River Express on a lease base.