Cathay, Air China get green light to joint venture

EUROPE has cleared Cathay Pacific and Air China to jointly own the joint venture Air China Cargo, a subsidiary of Air China.

The joint venture was announced four years ago but the global recession forced the plans to be put on hold.

Air China will own 51 per cent of the all-cargo airline, while Cathay Pacific will own 25 per cent directly and the remaining 24 per cent through its subsidiary Fine Star.

The ruling will give Cathay Pacific access to the Yangtze River Delta region, China’s manufacturing heartland.