Dragonair, Air China, and Cathay Pacific are merging together to try to challenge Hong Kong's spot as a top hub in the Asia-Pacific area. Many shareholder changes are going to be made as Dragonair will be entirely owned by Cathay Pacific. Air China is going to be a large shareholder of Cathay Pacific, while Cathay will be increasing its number of shares of Air China. The result of all of these maneuvers will be that Dragonair and Cathay will have the same operating systems and will be able to offer more flights throughout China. This is all due to the increased cooperation between Air China and Cathay. As these airlines merge, both Hong Kong International Airport and Beijing Capital International Airport will be major hubs for travelers coming to mainland China. In addition, this will create a strong airline alliance. This information is based on a joint statement.