This just in:-
Cathay Pacific holding merger talks with Air China
Cathay Pacific holding merger talks with Air China
Hong Kong airline Cathay Pacific is reported to be holding talks about a merger with mainland national carrier Air China in a deal which would give the two airlines unrivalled coverage of one of the world's fastest growing aviation markets.
Cathay Pacific would not comment on the report but a company source said it was preparing to make an announcement later in the day, reported RTE Business.
The South China Morning Post said the multi-billion dollar deal would see the newly listed Air China take over Cathay Pacific, and the Hong Kong airline's British parent Swire Pacific would then take a large stake in the mainland carrier.
'A deal is very close to being completed,' the paper quoted a senior Swire executive as saying.
The deal would also see Hong Kong's second airline, Dragonair, being taken over first by Cathay Pacific and in turn folded into the new company.
Cathay Pacific is one of the world's top-ranked airlines but Air China has the network in China, the rapidly developing business and tourism market that the Hong Kong carrier views as the future core of its operations.