Cathay Pacific buys 9.9% of Air China

21 October 2004

Cathay Pacific agreed to take a 9.9% stake in Air China, a move signaling closer cooperation in areas such as developing their respective hubs, Chek Lap Kok Airport and Beijing Capital International Airport. Air China, which according to Dow Jones report has scrapped planes to list in New York in favor of London, plans an initial public offering in Hong Kong later this year or early next. No details on the stake sale were disclosed. Industry experts said the deal points to joint marketing efforts, tighter schedule coordination and codesharing.