Eva buys 21pc stake in Makung

PUBLISHED : Monday, 24 April, 1995, 12:00am
UPDATED : Monday, 24 April, 1995, 12:00am

EVA Airways Corp confirmed that it had acquired 25.212 million shares of Makung Airlines at NT$302.54 million (about HK$90.76 million), giving the airline a 21 per cent stake in the domestic airline.

Makung Airlines is based in Kaohsiung and provides service mainly between Taiwan and the offshore islands.

Eva, the second-largest international carrier in Taiwan, has been aggressively expanding on the domestic market. It hopes that the closer co-operation with local airlines will help upgrade the service standards on the domestic market.

But other domestic carriers are not cheering the deal. They are taking various precautions to counter the price-cutting tactic they fear Eva might adopt.