Cathay Pacific, Air China in talks for Shanghai cargo venture

HONG KONG flag carrier Cathay Pacific is poised to announce its Shanghai-based air cargo venture with its second-largest shareholder Air China according to insiders, reports Bloomberg.
Sinopac Securities analyst Jack Xu said the deal could be seen as a direct challenge to the China Eastern-Shanghai Air deal last month which led it to drop from its number two rank surpassing its fleet size. "Shanghai is the most important cargo market among Chinese cities," he added.
The deal which could see Air China present its seven 747 freighters and Cathay to contribute five or six plane, according to separate sources. Cathay Pacific and Dragonair currently hold 26 Boeing 747Fs with one under conversion work from June, and eight Airbus SAS cargo planes through its DHL venture.
The cargo venture would see a 51:49 split in share to Air China which already holds 30 per cent of Cathay Pacific, which in turn holds a 18 per cent share.