Extracts from an article in today's SCMP.
Air China yesterday confirmed that it was in talks with China Cargo Airlines (CCA) about the potential for future ''business co-operation'' with it's freight division, Air China Cargo.
''The two companies are in contact in regards to the potential for future business co-operation'' said Rao Xinyu, head of investor relations for Air China. ''On whether or not a merger will be the result, we have no comment''.
Xinhua, citing a weekend report in the Economic Observer, said the company created by the merger of Air China Cargo and CCA would also envelop by the end of the year the cargo division of Hong Kong Dragon Airlines (Dragonair).
Dragonair's chief executive Stanley Hui Hon-chung was not aware of the supposed merger yesterday, according to an official for the company. Air China officials too, were suprised by the report.
''It's true there are discussions (with CCA) but I see no reason why Dragonair has been inclued'' Ms Rao said. Asked if Dragonair is in anyway involved, she said ''No''.