AIR CHINA AND CATHAY TO LAUNCH CARGO VENTURE

Air China and Cathay Pacific is close to launching its jointly owned cargo airline agreed upon in February. The existing airfreight carrier Air China Cargo Co Ltd (ACC), previously a wholly owned subsidiary of Air China, has been split between the two companies with Cathay investing around $260 million for their share. The new service will commence by January 1, 2011 as it has already been officially approved by the Chinese government. ACC currently operates seven Boeing 747 freighters to fourteen global destinations and Cathay Pacific say they will also sell four freighters and two spare engines to ACC. ACC