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Cathay Pacific to fully acquire Air Hong Kong by end of 2018
Cathay Pacific Airways is to gain full control of Air Hong Kong by buying out DHL International's 40 per cent stake in the cargo airline in a deal that will see Cathay sell eight freighters to the minority stake holder and then lease them back.
Five of the A300-600F freighters will be sold to DHL by December 31, with the remaining three sold by the end of 2018. Cathay will sell the freighters to DHL International for HKD2.199 billion (US$281.89 million) as part of an agreement originally announced in July.
Air Hong Kong and DHL will enter a new block space agreement, under which Air Hong Kong will operate an agreed freighter network to destinations in Asia for DHL and will receive agreed service fees and reimbursement of operating expenses.
Cathay currently owns 60 per cent of Air Hong Kong, while the remaining stake held by DHL International is worth an estimated HKD36.2 million plus retained earnings attributable to the minority interest.
The funds from the freighter sales will be applied to the general working capital requirements of Air Hong Kong, Cathay said, as reported by American Shipper.
Five of the A300-600F freighters will be sold to DHL by December 31, with the remaining three sold by the end of 2018. Cathay will sell the freighters to DHL International for HKD2.199 billion (US$281.89 million) as part of an agreement originally announced in July.
Air Hong Kong and DHL will enter a new block space agreement, under which Air Hong Kong will operate an agreed freighter network to destinations in Asia for DHL and will receive agreed service fees and reimbursement of operating expenses.
Cathay currently owns 60 per cent of Air Hong Kong, while the remaining stake held by DHL International is worth an estimated HKD36.2 million plus retained earnings attributable to the minority interest.
The funds from the freighter sales will be applied to the general working capital requirements of Air Hong Kong, Cathay said, as reported by American Shipper.
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