Air China Chairman, Kong Dong, stated the carrier has no immediate plans to further increase its stake in Cathay Pacific, after agreeing to raise its holding to 29.99%, stating (Bloomberg/The Standard, 27-Aug-09). Mr Kong added the carriers plan to increase cooperation in purchasing and other areas to reduce costs. The airlines have also announced plans to establish an air cargo JV venture in Shanghai by the end of 2010 to enable the carriers to better compete with the merged China Eastern/Shanghai Airlines, with asset valuation work nearly complete and the two parties currently discussing the future business structure.
Air China: "We are happy with the new shareholding structure and will maintain our stake at the 29.99% level. We are going to strictly follow an agreement made between Cathay, Swire Pacific and us in 2006, and stick to our promise not to increase the stake over the 30% level… We believe credibility remains the key to the conduct of any business in the long run. We have given our word and we intend to keep it," Kong Dong, Chairman. Source: The Standard, 27-Aug-09.