Air China is in talks to buy the 24 per cent outstanding Air China Cargo shares from its joint venture partner, the parent of Beijing Capital International Airport, an Air China executive told Reuters.
If the deal goes through, said the news agency, Air China would increase its stake in Air China Cargo to 100 per cent from its current 76 per cent, the executive said.
In January, Air China signed a deal to buy a 25 per cent stake in the cargo venture for CNY857 million (US$119.9 million) from CITIC Pacific, increasing its stake to 76 per cent as part of an effort to strengthen its core business.
The parent of Beijing Airport intends to sell off its interest in the air cargo venture because the business is non-core, said the executive.
Industry observers say Air China's interest in the cargo venture relates to its intention to form a partnership with China Eastern Airlines. Earlier, Air China's parent China National Aviation Corp (CNAC) proposed a tie up between Air China and China Eastern, after China Eastern's minority shareholders blocked Singapore Airlines' plan to buy a stake in China Eastern for US$920 million.
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