Air China Agrees To Buy Out Cargo Unit

Air China said Friday it has agreed to buy all the shares it does not already own in its cargo venture with the parent of Beijing Capital International Airport for CNY718 million yuan (USD$105 million).

Under the agreement, Air China will acquire the Beijing airport group's 24 percent stake in Air China Cargo, increasing its stake in the unit to 100 percent, it said in a statement.

Air China Cargo booked an unaudited net profit of CNY410,000 on sales of CNY7.07 billion in 2008, it said. It gave no comparative figures.

In January 2008, Air China signed a deal to buy a 25 percent stake in the cargo venture for CNY857 million from CITIC Pacific, boosting its stake to 76 percent as part of an effort to strengthen its core business.