Beijing wants 'Big 3' carriers to merge cargo units

China is pushing the country's three major airlines - Air China, China Eastern and China Southern - to merge their cargo operations in a bid to claw back business in a market dominated by foreign carriers.

An official from China Southern said a preparation team had been formed to work out details of the consolidation while some sources said the proposed merger would be based in Shanghai, according to the South China Morning Post.

Another source said a task force formed by State-owned Assets Supervision and Administration Commission (Sasac) officials and airline executives was working out the form and share holding structure of the new cargo airline.

However, the plan may put a cargo venture between Cathay Pacific and Air China at risk, according to a source familiar with the cargo talks.

A Cathay spokesperson said the target of having the joint venture carrier coming into operation in late July or August remained unchanged.

Cathay had in February agreed to take a 49 percent stake in Air China Cargo and the venture is still subject to final approval by the central government.

About 70 percent of the international air cargo in China is carried by foreign carriers including Air France, Lufthansa and Cargolux, while the major three mainland carriers accounted for 30 percent. 

(Source: Cargo News ASia)