Cathay Pacific to fully acquire Air Hong Kong

The Hong Kong-based air carrier will acquire the remaining shares in its cargo airline subsidiary in a deal that will see Cathay Pacific sell eight freighters to the minority stake holder, DHL International, and then lease them back.    Hong Kong-based Cathay Pacific Airways has inked an agreement to gain full control of cargo airline Air Hong Kong by selling eight freighters to DHL International and leasing them back, the company announced on Monday. 
   Under the agreement, five of the A300-600F freighters will be sold to DHL by Dec. 31, with the remaining three sold by the end of 2018. Cathay will sell the freighters to DHL International for HK$2.199 billion (U.S. $281.89 million) as part of an agreement originally announced in July and will operate on an agreed network of overnight freight routs, Cathay said.
   Cathay currently owns 60 percent of Air Hong Kong, while DHL International holding the remaining 40 percent – worth an estimated HK$36.2 million plus retained earnings attributable to the minority interest. The joint venture agreement is expected to expire at the end of 2018, at which point its stake in Air Hong Kong will rise to 100 percent. The funds from the freighter sales will be applied to the general working capital requirements of Air Hong Kong, Cathay said.