Cathay to buy 9.9 pct of Air China

Hong Kong's largest airline Cathay Pacific has agreed to buy a nearly 10 per cent stake in Chinese mainland carrier Air China as part of a deal that promises a close partnership between them, China Radio International reported on Wednesday.

In a statement issued Wednesday night, the two carriers said they would use the investment as a platform for exploring ways to further develop Hong Kong's Chek Lap Kok airport and Beijing Capital International Airport as gateways for air travel on the mainland.

No sale price for the shares was announced, but the statement listed possible areas of cooperation including joint marketing and sales activities and coordination of operating schedules to feed passenger and cargo between the two carriers.

Cathay Pacific and Air China will also cooperate in engineering, ground cargo and luggage handling, catering, cargo services, IT, purchasing, safety and security.

Beijing-based Air China plans to list its shares on the Hong Kong stock exchange by the end of this year or early next year.

Source: CRI news