Air Transport World

Air China: airchina.com.cn.(Asia/Pacific)(financial results)

Riding China's booming economic engine, the country's largest international airline reported a 2005 profit attributable to shareholders of CNY2.41 billion ($299.7 million), a marginal improvement over 2004. This enabled Chairman Li Jiaxiang to claim that Air China was the country's most profitable major carrier. In late May, it signed a long-expected MOU committing to join the Star Alliance.

However, Air China's evolving cooperation with Cathay Pacific, a founding member of oneworld, raises questions regarding its participation in Star. In June it reached agreement to acquire a 10.2% stake in Cathay for HK$5.4 billion under an ownership restructuring among Air China, Cathay and Dragonair that will see Cathay invest HK$4. …

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