Chinese airlines create key hub

Cathay Pacific, Air China and Dragon Air are to realign their shareholding structures to create one of the world's strongest airline groupings, it was announced today.

This move will see Beijing and Hong Kong's positions as key hubs in the region strengthened.

As a result of the restructuring Cathay Pacific, will increase its strategic investment in Air China, while Air China will become a substantial shareholder in Cathay Pacific.

Hong Kong airline, Dragonair is also set to become a wholly-owned subsidiary of Cathay Pacific.

Cathay Pacific's chief executive, Philip Chen, commented: "Cathay Pacific taking full control of Dragonair and strengthening its partnership with Air China will reinforce Hong Kong's role as the premiere aviation hub in the Asia Pacific region and create one of the world's strongest airline groupings, here in Hong Kong."

Mr Chen also predicted that the restructuring will lead to improvements in connectivity and route management as well as increasing travel options for passengers, providing more destinations.

Cathay Pacific Airways was founded in 1946 by Roy C Farrell and Sydney H de Kantzow, who began by opreating passenger flights to Manila, Bangkok, Singapore and Shanghai.

Posted by Kate, 07 June 2006 18:13

News tags

• Cathay Pacific
• Air China