Cathay Pacific to gain full control of cargo carrier Air Hong Kong

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The closing the of the deal originally announced in August, under which Cathay is set to take full control of its all-cargo subsidiary Air Hong Kong, which hitherto was 40% owned by DHL. Under the terms of the deal hammered out between the two companies, DHL will buy eight A300-600F converted freighters for US$282m and then lease them back to Cathay. The deal allows Cathay to funnel the initial proceeds back into Air Hong Kong to be used a working capital, reports Reuters.