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Air China News

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Air China eyes partner, overseas listing in 2002 Beijing Ð Air China, the national carrier, may seek a strategic investor and start selling shares abroad next year after completing mergers with China Southwest Airlines, and China National Aviation. Air China is now in contact with many companies interested in buying a stake in the company, said Wei Zhengzhong, director of the company's corporate affairs office. Wei declined to name the possible partners. "Next year is very important for the company," Wei said. "We may choose strategic investors and list in overseas markets." Air China may try to attract investment from one of its international rivals to help bolster confidence in any share offering. Airlines worldwide are facing falling sales and profit as passengers delay or scrap travel plans in the wake of the Sept 11 terrorist attacks in the US. Beijing-based Air China is one of three airlines slated by the government to take over seven other state-owned carriers. The other two, China Southern Airlines and China Eastern Airlines, already sell shares abroad. Air China's merger plan with two smaller airlines is likely to be approved by China's State Council, or cabinet, in the first quarter of next year, Wei said. The airline would then begin choosing investors and separating aviation businesses from the group as it prepares for a listing on a foreign stock market. The Asian Wall Street Journal on Monday named Lufthansa, Singapore Airlines, Northwest Airlines and Cathay Pacific Airways as possible partners. Air China already has several joint ventures with Lufthansa. Air China started selecting advisers for the share sale after a government-ordered industry restructure in April this year. The airline shortlisted HSBC Holdings, UBS Warburg and Merrill Lynch & Co in June. China now caps foreign ownership in its airlines at 35 percent. This is likely to be raised to 49 percent next year, Wei said. Ð Bloomberg.