Air China mulls cargo venture

Air China Ltd, the nation's flag carrier, and Cathay Pacific Airways Ltd intend to sign an agreement to form an air-cargo venture before the end of the week, said three people familiar with the negotiations.

The deal will likely be confirmed during talks in Beijing over the next few days, the three said, while declining to be identified, as the discussions are private. Air China will inject seven freighters into the venture, one person said. Cathay will put in five or six planes, two people said.

The carriers plan to form the Shanghai-based venture as Chinese exports rebound amid improving consumer confidence in the United States and Europe. They first began talks in 2006 alongside a larger deal centered on Cathay's acquisition of Hong Kong Dragon Airlines Ltd.