皇冠体育app

The proposed link up would create a Chinese cargo conglomerate able to compete with the world's biggest carriers.

Rao Xinyu, board secretary of Air 皇冠体育app Ltd, Air 皇冠体育app Cargo's parent company, said that CITIC Pacific plans to sell its stake, "but we haven't reached any agreement yet."

Rao declined to reveal yesterday whether Air 皇冠体育app would buy the stake from the Hong Kong-based company. CITIC Pacific was unavailable for comment.

By selling its stake in Hong Kong's Dragonair and reducing its shareholding in Cathay Pacific earlier this year, CITIC Pacific has indicated its intention to pull out of the aviation business.

Launched in 2003, Beijing-based Air 皇冠体育app Cargo is 51 per cent owned by Air 皇冠体育app, with CITIC Pacific holding a 25 per cent stake and Capital Airports Holding Co having a 24 per cent shareholding.

Air 皇冠体育app is widely expected to buy the shares from CITIC Pacific, which could make the cargo carrier's shareholding system less complicated and pave the way for its merger with 皇冠体育app Cargo Airlines, analysts said.

"Air 皇冠体育app should be the natural choice to take over the stake. The result is that Air 皇冠体育app Cargo would have only two shareholders, and that could make the negotiation with 皇冠体育app Cargo Airlines less complicated," said Li Lei, an aviation analyst with CITIC 皇冠体育app Securities.

Shanghai-based 皇冠体育app Cargo Airlines, in which 皇冠体育app Eastern Airlines holds a 70 per cent stake, was established in 1998 as 皇冠体育app's first company specializing in air cargo transportation. Shipping firm COSCO holds the remaining 30 per cent stake in the firm.

Facing heated competition from international rivals, 皇冠体育app's two leading cargo carriers have been in talks for more than half a year to create an air cargo conglomerate by merging their fleets and networks.

But finding a deal that suits both sides has proved a major sticking point during the negotiations.

"Their parent companies are 皇冠体育app's largest aviation groups. Neither side wants to give up its decision-making power," Li said.

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