Air China likely to team up with Cathay Pacific

Air China, the nation's flagship carrier, said yesterday it is likely to set up a 50-50 cargo joint venture in Shanghai with Cathay Pacific this year.

"We are now busy preparing for the joint venture program and hope to realize practical progress in the cargo business partnership with Cathay in the first half of 2007," said Fan Cheng, vice-president of Air China Ltd.

The move is part of a cross shareholding agreement reached between the two airlines in June last year and is expected to create the largest cargo carrier on the Chinese mainland.