Cathay, Air China inject funds in Air China Cargo
Cathay Pacific Airways, Air China and Fine Star agreed to increase the capital of Air China Cargo by 2 billion yuan (US$321.6 million).
Cathay Pacific owns 49 percent of Air China Cargo, while Air China owns the remaining 51 percent.
Investment holder Fine Star holds a 24 percent equity interest in the capital of Air China Cargo.
“The objective of the capital injection is to provide funds to assist Air China Cargo to adjust its fleet, to reduce its operating costs and to improve the performance of its main cargo business,” Cathay Pacific said in its announcement. “In addition, the capital injection will assist Air China Cargo to develop its cargo charter flight business with China Postal Airlines and to establish a sound and sustainable basis for the development of its overall business.”