Air China’s plan to form an airfreight joint venture with Cathay Pacific has obtained the approval of China’s National Development and Reform Commission. One strep further still to go — confirmation from the Chinese Ministry of Commerce that it meets anti-trust requirements. But it can probably be taken as a given a Shanghai-based joint venture, 51% owned by Air China and 49% by Cathay Pacific through direct equity and an offshore trust, will be up and running before the end of the year. Air Cargo World understands Cathay will
eventually pass its four B747-400 freighters over to the new airline. Air China, one of the top three carriers in mainland China, owns 30% of Hong Kong-based Cathay. Acquisition of additional Hong Kong-traded shares in Air China earlier this year took Cathay’s stake in Air China to 18.75%.
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