Air China to Sound Out Advisers on Raising Cathay Stake, Sources Say
- Prestigious airline could become target amid industry recovery
- Air China already has a nearly 30% stake in Hong Kong’s Cathay
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Air China Ltd. has been sounding out advisers in recent months on the possible merits of raising its nearly 30% stake in Cathay Pacific Airways Ltd., according to people familiar with matter, rekindling a long-running idea as the 77-year-old Hong Kong carrier rebounds from the pandemic.
While it has flirted with the possibility in the past, including before Covid, state-run Air China’s need to boost profitability has added fresh momentum, some of the people said, though nothing is likely to happen imminently.