The shareholders of Air China, Cathay Pacific Airways, China National Aviation Company (CNAC) and CITIC Pacific have approved the proposed shareholding realignment which will establish cross shareholdings between Air China and Cathay Pacific.

The four most significant results of the restructuring are:
- Air China will acquire a strategic stake in Cathay Pacific;
- Cathay Pacific will increase its strategic investment in Air China;
- Dragonair will become a wholly owned subsidiary of Cathay Pacific; and
- Air China and Cathay Pacific will enter into an operating agreement that will include implementing reciprocal sales representation where Air China will be exclusively responsible for Cathay Pacific's passenger sales in Mainland China and Cathay Pacific will be exclusively responsible for Air China's passenger sales in Hong Kong, Macau and Taiwan; the extension of code share arrangements between Hong Kong and Mainland China; the implementation of joint venture routes, that will operate under profit sharing arrangements, between Hong Kong and key cities in China; a proposed cargo joint venture in Shanghai; maintaining Dragonair as a principal airline for at least six years; and the strengthening of business cooperation in a number of other areas.

Air China's chairman Li Jiaxiang said: today's shareholder approvals pave the way for Air China and Cathay Pacific, our passengers and broader stakeholders to realise the exciting benefits of this important transaction. The shareholding realignment and Operating Agreement will combine to create a potent new force in the airline industry and help the Chinese aviation industry, as well as the Beijing and Hong Kong hubs, develop to their full potential.

According to an official release, Swire Pacific will remain the principal shareholder in the enlarged Cathay Pacific group. Dragonair will continue to operate under its own brand, but under Cathay Pacific management.

The stronger shareholding ties between Air China and Cathay Pacific and the Operating Agreement will bring significant benefits to both companies and offer opportunities for a closer operational partnership, added the release.