Air China Ltd, the nation's flag carrier, inched a step closer to its goal of finalizing an air cargo joint venture with Cathay Pacific Airways by the end of June after the government approved a 1.5 billion-yuan capital injection into the airline.

The Beijing-based airline, also the nation's largest international carrier, will receive the funds from its controlling shareholder China National Aviation Holding Co.

Air China will use the capital to acquire a minority interest in its cargo unit, Air China Cargo, the airline said in a statement on Saturday. This makes it the third mainland carrier to receive a capital injection from the government.