Air China Eyes Greater Share in Cathay Pacific, Stirring OneWorld Alliance Speculation

In a move that could reshape the landscape of global aviation alliances, Air China is reportedly considering an increase in its stake in Cathay Pacific. This strategic interest, as detailed by Bloomberg, suggests a potential shift in control towards the Beijing-based flag carrier, which currently owns nearly 30% of the Hong Kong airline. Such a development casts uncertainty over Cathay Pacific’s affiliation with the oneworld Alliance, especially given Air China’s membership in the competing Star Alliance.

This exploration comes as Cathay Pacific begins to recover from the financial turbulence induced by the COVID-19 pandemic. Although discussions are at a nascent stage and far from concluding in any formal agreement, the implications of such a move are significant. It highlights China’s growing influence in Hong Kong’s critical sectors, reinforcing the city’s role as a pivotal financial center and gateway to the mainland.

The potential for Air China to assume a more dominant position in Cathay Pacific raises intriguing questions about the future direction of the airline and its strategic alliances. This development is keenly watched by industry observers and could herald a significant realignment in the competitive dynamics of international air travel.

Sources: AirGuide Business airguide.info, bing.com, chinatravelnews.com