Air China will hold 51 percent of a cargo venture with Cathay Pacific which it hopes to finalize in the first half of next year, a Chinese airline executive said on Monday.

An industry newsletter sent to Reuters said the two carriers will provide 10 Boeing 747-400 freighters to their Shanghai-based venture which will take off before the Shanghai world expo in May 2010. It did not say where it got the information.

Air China in August bought a further 12.5 percent stake in Cathay, lifting its interest in the Hong Kong-based carrier to 29.99 percent.

The venture could give Air China and Cathay a foothold in Shanghai, a major air hub in the country, and help them better compete with China Eastern Airlines, which will have rough half of the Shanghai market after its planned merger with Shanghai Air.