Air China is reportedly exploring the possibility of increasing its stake in Cathay Pacific to assume control of the Hong Kong-based carrier.
This development has raised questions regarding Cathay Pacific's future within the oneworld Alliance, given that Air China is part of the Star Alliance.
According to a report by Bloomberg, China's flag carrier currently holds nearly a 30% stake in Cathay Pacific but is seeking to increase it as Cathay rebounds from setbacks caused by the COVID-19 pandemic. The considerations are still in a very preliminary stage, and it is unclear whether this would lead to any deal. Nonetheless, the news reflects China's deeper involvement in Hong Kong, a crucial financial hub and a gateway to mainland China.
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