CITIC Pacific Ltd said Air China Ltd may buy out its 25 percent stake in their joint cargo venture as the Chinese mainland's largest international carrier seeks to take over the unit.

Citic Pacific, a state-backed investment company, has been talking to Beijing-based Air China about selling all its shares in Air China Cargo, Managing Director Henry Fan's office told Bloomberg News in a telephone interview, without providing details.

Air China plans to set up a cargo venture later this year with Cathay Pacific Airways Ltd to meet the mainland's rising freight demand. China mainland's air cargo volume will average 13 percent yearly growth through 2010, according to the aviation regulator.

Air China owns 51 percent of Air China Cargo, which is 25 percent held by Hong Kong-based Citic Pacific and 24 percent by Beijing Capital Airport Group Co.