Air China to Set Up Cargo Venture with Cathay Pacific

Air China Limited (SHSE: 601111 and SEHK: 0753) Board Secretary Huang Bin discloses that his company is talking with Cathay Pacific Airways Limited (SEHK: 0293) over the setup of a cargo joint venture in Shanghai before June 30, 2010.

Air China Cargo Co., Ltd. takes on the talk on the Air China side. The negotiation lasts three years and has entered the phase of asset assessment. Although both sides have not nailed down specific details, they agree that ten Boeing 747-400 wide-body commercial airliners will be provided for the venture.

Air China is the second largest shareholder of Cathay Pacific Airways with a 29.99% stake. Meanwhile, the latter holds a 17.49% stake in the former.

Currently, China's cargo airways include Air China Cargo, China Cargo Airlines Limited under China Eastern Airlines Corporation Limited (NYSE: CEA, SEHK: 0670 and SHSE: 600115), China Southern Airlines Co., Ltd. (SEHK: 1055 and SHSE: 600029), Yangtze River Express Co., Ltd. under Hainan Airlines Group (HNA), and Jade Cargo International Airlines Co., Ltd. under Shenzhen Airlines Limited.

Source: www.cnstock.com (November 04, 2009)

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