The parent of Air China, the largest freight airline in China, will get a $220 million government subsidy to expand its stake in cargo operations, the airline said Monday.
Air China said the funding is to go toward a larger share of the Air China Cargo joint venture with the Beijing Capital International Airport, although “the detailed capital injection scheme has not been confirmed yet,” the airline said.
The carrier, which ranked as the world’s 15th largest cargo airline in 2008, already owns 76 percent of the Air China Cargo business. The new funding would likely go toward a complete buyout.
Air China has been looking to expand its stake in international freight business and has been in talks with Cathay Pacific about a joint venture operation based in Shanghai.