From the International Herald Tribune:

Swire Pacific, the owner of Hong Kong-based Cathay Pacific Airways, on Wednesday ruled out relinquishing control of the airline after media reports that the mainland's flagship carrier, Air China could be preparing a takeover bid....

...Swire Pacific, which holds 46.5 percent in Cathay Pacific "is committed to being the principal shareholder of Cathay Pacific for the long term," the company said. "In addition, Swire Pacific does not intend to become the principal shareholder of Air China," the company said.

The article goes on to make these assertions:

A deal would have created the world's biggest airline group by market value and established China as a power in the international airline industry.

Aviation analysts believed that merging these carriers in some form would also have speeded market liberalization because China would have more confidence in allowing foreign airlines increased entry to its domestic aviation sector as it negotiated greater access to international routes.

What are those aviation analysts drinking? How would a monopolostic entity made up of the twin behemoths Cathay and Air China speed up market liberalization?

LINKS:
The IHT: Cathay rules out Air China merger