Air China, Cathay Pacific and Shanghai International Airport have launched a ground handling service joint venture.

The new venture, which has a registered capital of CNY360 million ($57.3 million), is 41% owned by Shanghai International Airport Co. and 10% by Shanghai Airport Authority. Air China holds a 24% stake and Cathay Pacific’s wholly owned subsidiary Hong Kong Airport Services holds the remaining 25% stake.

Shanghai Airport Authority and Shanghai International Airport Co. have transferred their existing airport ground handling services contracts—including for Cathay Pacific and its subsidiary Dragonair—to the JV. Air China will transfer ground handling services to the JV from April 1.

The new entity provides ground handling services for 30 carriers, comprising 11 domestic carriers and 19 foreign carriers, accounting for one-third of Shanghai Airports’ market share.

Shanghai Airport Authority and Shanghai International Airport Co’s ground handling staff have also been transferred to the new joint venture company to ensure the continuity of operations at both Pudong and Hongqiao airports.