CHINA: Green light for Cathay/ Air China cargo JV

China’s Ministry of Commerce has given the green light for the joint venture air cargo firm by Air China and Cathay Pacific Airways, with operations to begin by 1 January 2011. The existing airfreight carrier Air China Cargo Co Ltd (ACC), previously a wholly owned subsidiary of Air China, has been split between the two […]


China’s Ministry of Commerce has given the green light for the joint venture air cargo firm by Air China and Cathay Pacific Airways, with operations to begin by 1 January 2011. The existing airfreight carrier Air China Cargo Co Ltd (ACC), previously a wholly owned subsidiary of Air China, has been split between the two companies with Cathay investing around US$260 million for their share which amounts to 25 per cent and Air China will have 51 per cent, with the remaining 24 per cent held by an overseas trust company. The two carriers already have close links with Air China holding nearly a 30 per cent stake in Cathay which in turn holds a 19 per cent stake in the mainland carrier. ACC currently operates seven B747 freighters to fourteen global destinations and Cathay Pacific is to transfer four of its B747Fs and two spare engines to ACC. ACC also acts as sales agents for the considerable cargo space available on Air China’s domestic and international passenger flights.