China Eastern Airlines has completed the disposal of its entire stake in Eastern Logistics.

The Shanghai-based carrier said in a disclosure to the Hong Kong Stock Exchange that it transferred 100% equity interest in Eastern Air Logistics to Eastern Airlines Industry Investment, valued at 2.433 billion yuan. Eastern Logistics has ceased to be a subsidiary to the company since February 8, 2017.

The SkyTeam carrier explained Eastern Logistics had endeavored to change its business model in recent years but its share of the freight market has been shrinking, and its prospects unclear due to the relatively low competitiveness and risk resistance. Subsidiary China Cargo also suffered "large losses" from 2011 to 2015.

The disposal is hence "a specific measure and reasonable option" for the airline to cope with "poor conditions of the air freight market", it added.

After completion of the disposal, China Eastern will focus on air passenger transportation business, further foster its reform and transformation, improve the operating and management ability in respect of air passenger transportation business and strive to create better investment returns for shareholders.

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