Air China plans to sell majority share in its cargo business

Air China is looking to sell a 51% stake in its Air China Cargo business. According to a report in Reuters, a “sister unit” of the Shanghai-based carrier will be making the acquisition, parting with roughly $354m in the process. The flag carrier said the decision had been made – despite improving profitability – because of “intensifying competition”, uncertainties in international trade and exchange rate fluctuations. While other shareholders, including Cathay Pacific, have priority when it comes to purchasing or selling shares, it appears they do not intend to.