Cathay Pacific to buy DHL stake in Air Hong Kong

The official flag carrier of Hong Kong will purchase the remaining 40 percent of shares in Air Hong Kong, held by DHL, who in turn will acquire eight freighter aircraft from Air Hong Kong.    Hong Kong-based airline Cathay Pacific will purchase the remaining 40 percent stake in freighter carrier Air Hong Kong (AHK) – currently held by joint venture partner DHL, a German logistics and express parcels operator. AHK is indirectly owned by Cathay Pacific (60 percent) and DHL (40 percent).
   According to a Hong Kong Stock Exchange filing, eight Airbus A300-600F freighter aircraft and associated equipment will be sold by AHK to DHL, which would then lease the aircraft back to the carrier, via the non-binding agreement.
   Furthermore, AHK and DHL will enter into a block space agreement, presumably on Dec. 21, 2018, when the old block space agreement expires. Under the old block space agreement, AHK sells space to DHL on an agreed network of overnight freight routes.
   The Hong Kong Stock Exchange filing states that, “Under the block space agreement, it is contemplated that AHK will operate an agreed freighter network to destinations in Asia for DHL, and will receive agreed service fees and reimbursement of operating expenses.”   
   The filing also notes that DHL owned 36,268,000 shares, but no financial details on the sale or value of the deal have been disclosed.