China Postal Airlines (CF, Nanjing) has received CNY2billion (USD321.1million) in funding from parents Air China (CA, Beijing Capital) and Cathay Pacific (CX, Hong Kong International) a Hong Kong Stock Exchange filing has revealed. The funds will allow the loss-making venture to proceed with a critical restructuring of its business.
"The objective of the Capital Injection is to support Air China Cargo in achieving its fleet adjustment, reduction of its operating costs and performance improvement in its main cargo business. In addition, the Capital Injection would assist the carrier in developing its cooperation with China Postal Airlines (CF, Nanjing) in respect of cargo charter flight programme and establishing a foundation for its strategic framework in the whole logistics value chain, thereby achieving Air China Cargo's sustainable and sound development."
Air China will contribute CNY1billion, Cathay Pacific China Cargo Holdings CNY500million and subsidiary Fine Star CNY480million.
"The respective shareholding of the Company, Cathay Pacific China Cargo Holdings and Fine Star in the then enlarged registered capital of Air China Cargo will remain unchanged at 51%, 25% and 24%, respectively."
