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Air China and Cathay Pacific set up Shanghai cargo JV. Chipping away the Hong Kong hub

Analysis

It may be two years overdue, but cross-equity partners Air China and Cathay Pacific have made good on their 2006 promise to develop a cargo JV carrier in Shanghai. As cargo markets come out of their two-year trough, the timing is good for the 51:49 Air China-Cathay foray into the Yangtze River Delta market. The carriers finalised their JV agreement yesterday, with the new Pudong-based operation to be named Air China Cargo Co Ltd (ACC).

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