Air China, Cathay Pacific to Set Up Largest Cargo JV in Shanghai

October 29, 2009 Posted by China Briefing Reading Time: < 1 minute

Photo by Thomas.fanghaenel/Creative Commons License SHANGHAI, Oct. 29 – Hong Kong’s Cathay Pacific Airways and Air China have agreed to partner to form the country’s biggest cargo joint venture in Shanghai in anticipation of rising demand.

“The venture is expected to be launched ahead of the 2010 Shanghai World Expo but still requires regulatory approval,” Kong Dong, chairman of Beijing-based Air China, told Shanghai Daily yesterday. “We are confident that the JV will benefit from Shanghai’s growing cargo demand. The city handled 3 million tons of cargo last year, exceeding Hong Kong to become the biggest cargo market in China.”

Air China is the country’s largest flagship international carrier while Cathay Pacific’s is Hong Kong’s flag carrier with 63 years of experience and manages a fleet of 24 freighters to 38 destinations around the world. Air China will have majority stake in the venture at 51 percent and Cathay Pacific will hold the rest. Financial details of the venture are yet to be made public.

The two carriers combined will allot 10 Boeing 747-400 jets to the cargo venture. In August, Air China increased its stake in Cathay Pacific from 17.49 percent to 29.99 percent.