Cathay Pacific to buy out partner DHL's 40% stake in cargo unit

Cathay Pacific agreed to buy out the stake owned by partner DHL International GmbH in a cargo venture as the premium Asian carrier revamps its operations as part of a three-year transformation program. Under the non-binding preliminary agreement, Cathay will purchase the 40% held by the German company in AHK Air Hong Kong, making it a fully-owned subsidiary, the airline said in a filing to the city’s stock exchange Friday. DHL will buy eight Airbus SE A300-600 freighters from AHK and lease them back to Cathay’s unit. With mainland China as its backyard and an ongoing boom in e-commerce in the region, Asia’s biggest international airline has been expanding its air-freight business even as it streamlines the structure by getting rid of the role of cargo director. Cathay, together with its Cathay Dragon unit, carried 11% more freight in the first five months of 2017 than a year ago.<br/>