[photopress:air_china_tail_planes.jpg,full,alignright]Hu Pengbin, an official with Air China’s planning and development department, said the nation’s biggest international carrier plans to form a cargo joint venture with its partner Cathay Pacific Airways in Shanghai in two months.
The group and its related firms are expected to hold 51% of the cargo joint venture to be set up in June. Hong Kong carrier Cathay Pacific and its related concerns will take 49% in the company.
Air China is also in talks with the Shanghai Airport Authority to build a cargo terminal with the capacity to handle 1.2 million tons annually.
Air China is not the major player in the Shanghai market and doing this deal with Cathay Pacific will help it consolidate its presence in Shanghai, where China Eastern Airlines and Shanghai Airlines have dominated the market.
Air China carried 14% more passengers last year as the country’s 10.7% economic growth made travel affordable to more people. It will receive 24 new passenger planes this year and become a Star Alliance member. Which is a bit odd because by going into a JV with Cathay Pacific one would have thought it would automatically become a Star Alliance member.
Source: Shanghai Daily