EVA Airways Corp., a leading air carrier in Taiwan, recently announced its increased investment of 65 million renminbi (US$9.29 million) in mainland China's Shanghai Airlines Cargo International Co., of which EVA has a 25% share.

Shanghai Airlines Cargo increased capital by 80 million renminbi (US$11.44 million) in August last year, with such increased capital having been depleted due to soaring fuel costs. To enhance its operations, Shanghai Airlines Cargo recently announced a capital increase of 260 million renminbi (US$37.19 million).

Skyrocketing crude oil prices internationally drove almost all the mainland's cargo air carriers into the red last year and in the first quarter of this year. Estimates are that Shanghai Airlines Cargo lost more than 200 million renminbi last year; while EVA said it had lost NT$183 million (US$26.18 million) from investing in Shanghai Airlines Cargo last year.

EVA said it had first invested US$3.88 million in Shanghai Airlines Cargo in June 2006, with the air freighter having launched with an initial operating capital of 120 million renminbi, and since has increased capital twice to total 464 million renminbi currently.

Based at the Shanghai Pudong International Airport, Shanghai Airlines Cargo flies to Frankfurt, Macao, Hong Kong, Osaka, Bangkok, and Ho Chih Minh City.