According to Bloomberg News on Friday, which cited people familiar with the situation, Air China Ltd. has spoken with advisors in recent months on the potential benefits of increasing its almost 30% ownership in Cathay Pacific Airways Ltd.
Although it has previously explored the possibility—even before Covid—Air China’s drive to increase profitability has given the idea new impetus, the article noted that nothing is expected to materialize very soon.
According to the article, Air China has consulted with lenders to see whether funding would be available should it ultimately choose to move forward with a purchase, but it should be noted that discussions are still very early on.
Requests for comment from Reuters were not immediately answered by Air China or Cathay Pacific.
The main stakeholder in Cathay is China’s flag carrier, with a 45% interest, followed by management Swire Pacific Ltd.
(Gnaneshwar Rajan reported from Bengaluru; Janane Venkatraman handled editing.)