SWIRE Pacific wants closer ties with China's airlines and will even consider an equity swap deal between them and its subsidiary Cathay Pacific Airways - representing a departure from previous policy.
''Cathay does not see much merit, if any, in entering into equity swaps with other carriers,'' said Swire chairman Peter Sutch.
''But bearing in mind what is happening in Hong Kong, and the way in which Cathay is becoming part of the Chinese aviation industry, it would be unwise of us not to look at doing that type of deal.'' He implied that Cathay would prefer to forge increasingly closer commercial links with airlines such as China Southern and China Eastern, saying: ''We would like to be closer; it doesn't have to be through shares.'' Mr Sutch said that if it appeared a US or European carrier was about to merge with a Chinese airline, Cathay would view it as a ''potential threat''.
He said: ''We would prefer it if relations with European or US airlines were not unduly strong. We would hope that the closest commercial ties will be with ourselves.'' Swire already has substantial Chinese investment in its aviation interests - CITIC Pacific holds a 12.5 per cent stake in Cathay, while China National Aviation Corp (CNAC) owns five per cent, as does China Travel Service (Holdings).
Hong Kong Dragon Airlines, which flies to 14 cities in China, is 46 per cent owned by CITIC Pacific.
Hong Kong Air Cargo Terminals, in which Swire has a 20 per cent stake, is owned 10 per cent by CNAC and 10 per cent by CITIC Pacific, while Jardines, Wharf (Holdings) and Hutchison Whampoa also own large chunks.