Air China gets capital injection from Beijing to increase Cathay stake

September 2, 2011

The Chinese government provided Air China with a CNY1 billion ($156.7 million) capital injection to allow the carrier to increase its holding in Cathay Pacific Airways, according to a statement from Air China released by the Shanghai Stock Exchange.

Air China and Cathay Pacific established a cross-shareholding deal in 2006. The most recent investment made by Air China in the Hong Kong-based carrier was CNY6.34 billion in 2009 to expand its stake to 29.99%, making the Beijing-based carrier the second-biggest Cathay Pacific shareholder.

View the full article in Air Transport World here