Singapore Airlines Cargo, a wholly-owned subsidiary of Singapore Airlines, is today signing an agreement to form a joint venture cargo airline with China Great Wall Industry Corporation (CGWIC) and Dahlia Investments, a wholly-owned subsidiary of Temasek Holdings.

The new cargo airline, named "Great Wall Airlines Company", will be incorporated in Shanghai, China.

CGWIC will own 51 per cent of the joint venture, Singapore Airlines Cargo will own 25 percent, and Dahlia Investments will own 24 percent. Singapore Airlines Cargo's stake of 25 percent is the maximum that a foreign airline investor is allowed.

Singapore Airlines Cargo's investment in the joint venture over the next three years is projected at 250 million yuan (USD$30 million).

Great Wall Airlines plans to begin operations in the first half of 2006. Besides destinations within China, it plans to operate wide body freighters to the major cargo markets in the USA, Europe, North East Asia and South West Asia.