Air China, the largest freight airline in China, will get a $220 million government subsidy to expand its stake in cargo operations.
Air China said the funding is to go toward a larger share of the Air China Cargo joint venture. Air China, which ranked as the world’s 15th largest cargo airline in 2008, already owns 76% of the air cargo business.
The new funding will probably go towards a complete buyout.
The Journal of Commerce reports that Air China has been looking to expand its stake in the international freight business and has been in talks with Cathay Pacific about a joint venture operation based in Shanghai.