BEIJING, China – Air China and Cathay Pacific Airways announced the completion of their air cargo joint venture at a launch ceremony in Beijing for the new company, Air China Cargo.
Air China will hold 51 percent of the new company’s shares. Cathay Pacific will hold 25 percent of the remaining shares, as well as a 24 percent economic interest in Air China Cargo. Air China Cargo’s Board of Directors has four Air China members and three Cathay Pacific members. After the consolidation, Air China Cargo’s fleet will include 12 B747-400 aircraft. The airline’s operation center will be based in Shanghai.
The air cargo joint venture between Air China and Cathay Pacific is part of the two airlines’ long-term cooperation strategy. This latest collaboration will increase fleet development and strengthen the market position of both airlines. The operation center in Shanghai will satisfy market demand in the Yangtze River Delta, which makes up two-thirds of Air China’s service area. Moreover, the joint venture will also help Air China Cargo achieve more balanced global growth.
