Great Wall Airlines has suspended operations after the United States imposed sanctions on its parent company, China Great Wall Industry Corporation (CGWIC).

CGWIC has denied the U.S. charges that it sold equipment to Iran that could be used in weaponry.

The sanctions imposed by the United States apply to CGWIC and its subsidiaries.

China Great Wall airline, a Sino-Singaporean air cargo carrier has grounded its two planes after just two months in operation.

Headquartered in Shanghai, Great Wall Airlines, is jointly owned by CGWIC, Singapore Airlines Cargo and Dahlia Investments, a wholly owned subsidiary of the Singapore government's investment firm Temasek.

The partners had invested 1.2 billion yuan (US$150 million) in the short-lived air cargo carrier.

Singapore Airlines Cargo, owns 25 percent of Great Wall Airlines the maximum allowable for a foreign airline in China, state-owned China Great Wall Industry Corp. has a 51-percent stake in the airline, while Dahlia Investments owned 24 percent.

The air cargo carrier operated an air route from Shanghai to Amsterdam, Singapore and Mumbai/Chennai.

Great Wall Airlines has promised its customers their packages will be delivered by other air companies. Airline officials are also trying to negotiate with the American administration to have Great Wall Airlines exempted from the sanctions.

(Xinhua News Agency August 23, 2006)