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Cathay Pacific in Merger Talks with Air China

Hong Kong carrier Cathay Pacific is in merger talks with Air China, hoping to strike a deal that will give the combined airlines unrivalled coverage of China, one of the world's fastest growing aviation markets.

 

The multi-billion dollar deal would see the newly listed Air China take over Cathay Pacific in return for the Hong Kong airline's British parent Swire Pacific taking a large stake in the mainland carrier.

 

A senior official from Swire Pacific says the deal is very close to being complete.

 

The deal would also see Hong Kong's second airline, Dragonair being folded into the new company.

 

(CRI.com March 16, 2005)

 

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