Air China is planning to spin off its freighter operation through the establishment of a new all-cargo airline jointly owned by Hong Kong-based conglomerate CITIC Pacific and the parent company of Beijing Capital International Airport.
Talks are under way and could lead to a deal by the end of this year. The new airline would be based in Beijing and would take over the operation of flag carrier Air China's four Boeing 747-200 freighters.
CITIC managing director Henry Fan confirms it is in discussions "on the possibility of setting up a cargo airline based on the mainland" with Beijing Airport and China National Aviation (CNAC), which is being merged with Air China.
"There is, however, no agreement yet and it is therefore premature to make any reference to terms and conditions of the joint venture, including amount of investment," he says.
Air China will not comment, while Hong Kong-listed Beijing Capital International Airport says the talks involve its parent, Beijing Capital Airport Group, which also will not comment.
CITIC Pacific is a major Hong Kong-based conglomerate controlled by mainland Chinese interests. It controls more than a quarter of Hong Kong's aviation industry through stakes in Cathay Pacific Airways, Dragonair and Hong Kong Air Cargo Terminals.
CNAC is the commercial arm of the regulatory Civil Aviation Administration of China. Its Hong Kong-listed unit of the same name has the biggest single stake in Dragonair, with 43% ownership.
Both CNAC and CITIC have sought to expand their involvement in mainland China's aviation sector, which is undergoing a major consolidation exercise overseen by the government.
Source: Flight International
