NDRC okays Air China's Cathay cargo JV, but Commerce nod needed

CHINA's powerful National Development and Reform Commission (NDRC) has approved Air China's plan to set up an air cargo joint venture with Hong Kong's Cathay Pacific, which paves the way for a start up later this year, reports Dow Jones.

But Air China said it still needs to secure the approval of the Ministry of Commerce. Cathay Pacific, of which Air China owns a 30 per cent, has been working on the cargo deal for more than three years.

The plan is to use Air China's air cargo unit as core of the operation, of which Air China will own 51 per cent, and Cathay, the remaining 49 per cent.

Air China chairman Kong Dong said he expects strong growth in China's civil aviation market next year because of increased demand for domestic air travel and rising consumer incomes.
(Source:www.schednet.com)