Air China will hold a 51 per cent stake in its air cargo venture with Cathay Pacific that is hoped to be finalised in the first half of next year, a Chinese airline executive was quoted as saying by China Daily.

Reuters reported that the two carriers will provide 10 Boeing 747-400 freighters to their Shanghai-based venture.

In August, Air China bought a further 12.5 per cent stake in Cathay, lifting its stake to 29.99 per cent.

The venture could give both carriers a foothold in Shanghai, where China Eastern Airlines will have a market share of around 50 per cent after its planned merger with Shanghai Air.