DRAGONAIR is negotiating with Cathay Pacific and the Jardine group to take over the International Aviation Services (Hong Kong) at an estimated cost of $20 million. Henry Fan Hung-ling, managing director of CITIC Pacific, which controls Dragonair, said the acquisition would place Dragonair in a good position to undertake handling services at the new airport. He said Dragonair currently owned 30 per cent of International Aviation Services, while Cathay Pacific owned 50 per cent and Jardine owned 20 per cent. But no formal agreement had been signed for the acquisition yet, he said. CITIC Pacific recently took a 10 per cent stake in Hong Kong Air Cargo Terminals, as part of its strategy to gear up for its participation in the new airport project. Besides the new airport, Mr Fan said CITIC (Hong Kong) and CITIC Pacific were still looking at the Route 3 project. He said they might bring in more companies as shareholders in the consortium bidding for the Route 3 scheme. Meanwhile, Mr Fan said CITIC (Hong Kong) had recently taken advantage of the bull market to sell its remaining interest, about one per cent, in Hong Kong Telecom.