Air China and its Hong Kong partner, Cathay Pacific Airways, plan to set up a cargo joint venture this year, according to Chinese aviation executives.

The sources said the cargo venture was likely to be a 50-50 tie-up but there was a chance Air China would hold a controlling stake.

Cathay Pacific Airways is a fascinating story with its connections to both Scotland (the Swire Group) and China. It was founded in Shanghai in 1946.

The story is the idea was thought up by two pilots and a group of journalists in the bar of the Manila Hotel. This is at least possible if not probable.

The new airline was named Cathay for that was an ancient name for China, and Pacific because the intent was to one day fly across the Pacific to the United States.

On Cathay Pacific’s maiden voyage, Roy Farrell and Sydney de Kantzow flew from Hong Kong to Manila, and later on to Shanghai in a single Douglas C-47. In 1948 Butterfield & Swire bought 45% of Cathay Pacific and it took off from there.