Air China to hike stake in Cathay

Air China, the country's flag carrier, will increase its stake in Cathay Pacific Airways to nearly 30 percent by buying shares from CITIC Pacific at HK$6.335 billion.

The Beijing-based airline will buy 491.9 million shares of Cathay at HK$12.88 apiece from CITIC Pacific, according to a statement posted on the Hong Kong Stock Exchange.

The deal will make Air China the Hong Kong carrier's second largest shareholder after British conglomerate Swire Pacific.