Air China Ltd.’s parent is seeking private money for an air-cargo and logistics venture with planned total investment of 10 billion yuan ($1.5 billion) as part of Beijing’s mandate for state-owned firms to diversify their ownership.
China National Aviation Holding Co., the state-owned controlling shareholder of Beijing-based Air China, is among companies looking for private partners under the nation’s so-called mixed-ownership reform, according to a list of aviation-related projects published Thursday on the website of the Civil Aviation Administration of China.
Air China, which owns a stake in Cathay Pacific Airways Ltd., has a cargo joint venture with the Hong Kong-based company. The two airlines are in talks regarding attracting private investors for Air China and its parent’s cargo operations, Cathay Pacific’s China general manager Titus Diu said in March.
Last year, the parent of Shanghai-based China Eastern sold 45 percent of its cargo and logistics units for 2.26 billion yuan to four investors including Global Logistic Properties. Guangzhou-based China Southern Airlines Co. sold a minority stake to American Airlines Group Inc. for $200 million.