Air China to buy out cargo unit

China - Air China said it will buy all the shares it does not already own in its cargo venture in preparation of expected growth in the country's air cargo business.

In a statement, the carrier said it will acquire the remaining 24% stake in Air China Cargo from Beijing airport group for RMB105 million. It currently owns 76% of the cargo company together with its indirect interest through China National Aviation.

Air China Cargo reportedly booked unaudited net profit of RMB 410,000 on sales of 7.07 billion in 2008, but did not give comparative figures.

Air China said it plans to increase its investment in the cargo sector as a strategic move to strengthen Air China Cargo's aviation industry experience and resources.

Cargo volume in the domestic market rebounded for the first time in February since July last year, rising 7.4% to 195,195 tons, local media said.