An air-cargo venture expected to increase Cathay Pacific Airways' presence on the mainland could take off as early as next month, chairman Christopher Pratt said yesterday.
The venture between Cathay and Air China finally won approval from the Beijing government after months of delay, Pratt confirmed yesterday while attending Haeco's 60th anniversary celebration. Operations could start on January 1, if not next month.
Pratt stopped short of predicting the deal's impact on the earnings of Hong Kong's largest carrier - expected to hit a record HK$12.5 billion this year - but said he was optimistic about both cargo and passenger growth in the first quarter of next year.
Cathay Pacific sealed an agreement with its subsidiary Air China back in February to invest 1.7 billion yuan (HK$1.98 billion) in the latter's cargo unit.
Cathay will control 49 per cent of Air China Cargo, including a stake to be held by an offshore trust. It will inject four Boeing 747-400 freighters and two spare engines into the unit to pay for the transaction.
The airline said the joint venture would help it gain cargo traffic in the Yangtze River Delta, where cargo throughput has grown neck and neck with that in the Pearl River Delta.
