Air China and Cathay joint venture to set up freight airlines approved

Air China (601111) sh;00753.　　HK December 2 with Cathay Airlines (00293.HK) joint venture to establish a freight company, has officially received the National Development and Reform Commission, SASAC and other State departments approved, will likely be officially listed early next year, the new company's headquarters will be located in Beijing. Air China will have a 51% per cent stake in the new joint venture, Cathay will have a 25% per cent stake in the company and indirectly hold 24% of the new company's economic interests through loan returns. Air China's or will be fully loaded into the new joint venture.　　The total investment and registered capital of the new joint venture are not yet disclosed. Thus, the domestic freight market will form China International Air Cargo Holdings Limited (hereinafter referred to as "Chinese airlines"), Eastern Airlines (600115. sh;00670. HK) Holding of China Cargo Airlines, HNA (600221.　　SH) holding the Yangtze River freight, and other major freight giants competing. An insider to the "First financial daily" revealed that "after more than three years of ' love, marriage," Air China and Cathay Aviation joint venture to establish a freight company, finally will be officially listed. Cathay will send more than 10 senior executives to its new joint venture. The headquarters of the new joint venture will be in Beijing and Shanghai will become an important cargo base. "Air China has always adhered to the ' passenger and freight ' strategy," the person said. Through the strategic alliance with Cathay Airlines, 2006 implementation of the ' Star Project ', the establishment of a joint venture freight company. At present, Cathay Aviation in the freight business has been stationed in the relevant management personnel. As a result, China Airlines also experienced the process from joint venture to sole proprietorship and then to joint venture. December 12, 2003, China Airlines was listed in Beijing, was the largest freight forwarding company. Air China holding 51%, to the aircraft, engines, warehouses, freight yards and ground handling equipment, such as capital contributions. Citic Pacific, capital Airport Holdings 25% and 24% respectively, are funded by cash.