NEW FREIGHT JV AIRLINE FOR CATHAY PACIFIC AND AIR CHINA
- Latest News
- Monday, 24 July 2006
Details emerged when the Hong Kong-based Cathay Pacific signed a new multi-layered share deal with Swire Pacific, Air China, CNAC and CITIC Pacific.
The agreement will see a change in the shareholder structure of Cathay Pacific, Dragonair and Air China and elevates Cathay Pacific into the big league of airline players.
Under the agreement, which is subject to shareholder approvals, Dragonair will be wholly owned by Cathay Pacific. Air China will acquire a 17.5 per cent stake in Cathay Pacific, and Cathay Pacific will double its shareholding in Air China to 20 per cent.
Swire will remain the principal, long-term shareholder in Cathay Pacific. Dragonair will continue to operate under its own brand, but under Cathay Pacific management.
Swire Pacific will remain the principal shareholder in the enlarged Cathay Pacific group.
Dragonair will continue to operate under its own brand, but under Cathay Pacific management.
Commentating on the ramifications of the new agreement Cathay Pacific chief executive Philip Chen said: “Cathay Pacific taking full control of Dragonair and strengthening its partnership with Air China will reinforce Hong Kong’s role as the premier aviation hub in the Asia-Pacific region and create one of the world’s strongest airline groupings, here in Hong Kong. It will improve flight connectivity and route management, mean more destinations and greater travel choices for passengers and strengthen both Hong Kong and Beijing as major aviation hubs.”
