The agreement signed in February between Air China and Cathay Pacific to establish a jointly owned cargo airline looks set to materialize soon.
The existing airfreight carrier Air China Cargo (ACC), previously a wholly owned subsidiary of Air China, has been split between the two companies, with Cathay investing around US$260 million for its share.
This week a Cathay Pacific spokesman said the new service will commence by January 1 next year in a move which firms up already tight links between the two. Air China owns around 30% of Cathay, with a 19% ownership the other way. The new venture has been officially approved by the Chinese government.
Handy Shipping Guide reports Air China Cargo currently operates seven Boeing 747 freighters to 14 global destinations. Cathay Pacific said it will also sell four freighters and two spare engines to ACC.