Air China gets government cash infusion

The Chinese government has approved a 1.5 billion yuan capital injection into Air China, which will give a push to the air cargo joint venture with Cathay Pacific Airways. The Beijing-based carrier - China's largest international carrier - will receive the funds from its controlling shareholder China National Aviation Holding Co.

Air China will use the capital to acquire a minority interest in its cargo unit, Air China Cargo, the airline said in a statement. Launched in 2003, Air China Cargo initially had three shareholders, including Air China with a 51 per cent stake, CITIC Pacific Ltd with a 25 per cent stake and Capital Airports Holding Co with a 24 per cent share.