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Old 17th April 2006 | 13:36
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junior_man
 
Joined: Jan 2005
Posts: 254
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From: Hong Kong
Would that be this:


Wednesday April 12, 9:47 AM
HK PRESS: Cathay Pacific Open To Selling Dragonair Stake

HONG KONG (Dow Jones)--Hong Kong's Cathay Pacific Airways Ltd. (0293.HK) prefers to sell its 17.8% stake in Hong Kong Dragon Airlines Ltd. in return for better time slots for its flights to Beijing and Shanghai, the South China Morning Post reported Wednesday, citing company sources.

Cathay may sell its stake to China National Aviation Company Ltd. (1110.HK), which already owns 43.3% of Dragonair, the report said, citing the sources.

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Major shareholders of Cathay and Dragonair are negotiating a "realignment" of their interests in the carriers after conglomerate CITIC Pacific Ltd. (0267.HK) - which owns 28.5% of Dragonair and 26.7% of Cathay - said it plans to cut those stakes.

With Hong Kong and Chinese aviation authorities on the verge of reaching an open-skies agreement, the sources said Cathay doesn't see much strategic value in keeping its stake in the smaller airline, as Dragonair had privileged access to mainland China, flying to more than 15 cities in the country.

By comparison, Cathay flies passenger services to only two Chinese cities.

Conglomerate Swire Pacific Ltd. (0019.HK) is another major stakeholder in both airlines, holding 46.8% of Cathay, and 7.7% of Dragonair.

Newspaper Web site: http://www.scmp.com
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