The Hong Kong’s dominant carrier, Cathay Pacific Airways
announced the acquisition of 5.48 million shares in Air China. While filing its papers to the Hong Kong stock exchange, Cathay Pacific announced a total investment of USD 5.15 million in the added number of shares.
A Cathay spokeswoman while confirming the acquisition announced that the airline holding in the Air China has now risen to 18.77 percent from 18.43 percent. The airline also expressed its interest of increase it’s holding in the Chinese national carrier.
Air China also has significant number of shares in Cathay Pacific. In 2010 the Chinese national carrier acquired 30 percent of shares in Cathay that makes it the second airline after Swire Pacific to have stakes in Cathay Pacific. Swire Pacific holds nearly 43 percent shares of Cathay Pacific.
Although, there was a fall of 10 percent in Cathay share value, but was better than that of Air Canada whose value dropped to 16 percent during the same period.