Cathay Pacific group that includes Dragon Airlines has received approval from mainland China authorities to establish an air freight joint venture with Air China, but the timing of the launch is still unknown. "So far the process is well-managed," John Slosar, Cathay's chief operating officer, China Daily reported, adding that he hopes the launch will be "imminent." Air China subsidiary, Air China Cargo, will be the platform for the venture, in which Cathay will have a 49 per cent. The Hong Kong airline is expected to sell four Boeing 747-400BCF freighters and two spare engines to the joint venture. One has already been sold to Air China Cargo and the other three are due to be delivered between 2011 and 2012. Analysts said Shanghai-based Air China Cargo was in a good position to tap into air cargo opportunities in the Yangtze River Delta, a traditional manufacturing base. It said with new base in Shanghai, Cathay will be able to transport cargo from the Yangtze River Delta to its hub at Hong Kong's international airport and onwards to global destinations. The report noted that for 2010 the Cathay Pacific group's cargo revenue rose by 50.1 per cent to HK$25.9 billion (US$3.3 billion). Freight volume amounted to 1.8 million tons, an increase of 18.1 per cent year on year, on cargo capacity growth of 15.2 per cent. The group forecasts cargo volumes will rise by 12 per cent this year, according to the carrier's annual report filed at the Hong Kong stock exchange. The group's net profit grew 199.3 per cent year on year to HK$14.04 billion, on turnover HK$85.924 billion, up 33.7 per cent compared to the previous year. Said Cathay chairman Christopher Pratt: "We also benefited from the strong profits earned by our associated company, Air China, which contributed HK$2.42 billion to the 2010 result." (schednet)