Cathay Pacific and Air China renew agreement controlling partnerships between them

Air China and Cathay Pacific announced (28-Aug-2019) they renewed their existing framework agreement for a three year term. The renewed agreement will be formally entered into on 01-Oct-2019 and run from 01-Jan-2020 to 31-Dec-2022. Cathay Pacific is an 18.13% shareholder in Air China, while Air China owns 29.99% of Cathay Pacific. The agreement provides the framework under which agreements between members of Air China Group and Cathay Pacific Group are entered into, renewed and extended. These cover interlining, codesharing, joint operating arrangements, aircraft leasing, frequent flyer programmes, the provision of airline catering, ground support and engineering services and certain other services. Under the renewed agreement, a cap of HKD900 million (USD114.7 million) p/a has been put in place for transactions between the groups from 2019 to 2022. [more - original PR]