Cartoons

Changes ahead in the Cathay cockpit?

"Air China you are cleared to increase your stake."

Newspaper headlines cried ‘Red skies ahead’ as Air China increased its stake in Hong Kong airline Cathay Pacific to 29.99% this week. The deal saw China’s leading carrier up its shareholding in Cathay from just over 17%.

The British-based Swire family still controls 41.97% of Cathay through Swire Pacific, which has 10 board seats out of 18 (Air China will now have four).

But speculation is growing that Air China will eventually take control. As the South China Morning Post commented: “Noodles or cucumber sandwiches? If Air China’s ambition to take control of Cathay Pacific is ultimately successful, it will create Asia’s largest carrier and help the state-owned airline lift its game.”


© ChinTell Ltd. All rights reserved.

Exclusively sponsored by HSBC.

The Week in China website and the weekly magazine publications are owned and maintained by ChinTell Limited, Hong Kong. Neither HSBC nor any member of the HSBC group of companies ("HSBC") endorses the contents and/or is involved in selecting, creating or editing the contents of the Week in China website or the Week in China magazine. The views expressed in these publications are solely the views of ChinTell Limited and do not necessarily reflect the views or investment ideas of HSBC. No responsibility will therefore be assumed by HSBC for the contents of these publications or for the errors or omissions therein.