Cathay gets EU nod for Air China Cargo JV

Cathay Pacific received EU regulatory approval late last week for its US$474 million cargo joint venture with Air China to expand into the fast-growing Yangtze River Delta region.

The Hong Kong-based airline said in February it would pay US$124.8 million for a 25 percent stake in Air China Cargo and provide a $119.7 million loan for an additional 24 percent economic interest in the venture, Reuters reported.

The venture would help the two airlines to better compete with China Eastern Airlines, which has about half of the Shanghai market after its merger with Shanghai Air.

"The Commission's market investigation confirmed that competition on this market will remain strong after the transaction, notably due to the presence of many large international airline companies active on the same routes," the European Commission said. 
(Source:www.cargonewsasia.com)