CATHAY PACIFIC, DHL FORM EXPRESS CARGO JOINT VENTURE

CATHAY PACIFIC, DHL FORM EXPRESS CARGO JOINT VENTURE

   Cathay Pacific Airways and DHL Worldwide Express said Wednesday have signed a joint venture agreement to provide expanded air service.

   DHL has now acquired a 30-percent stake in Air Hong Kong, Cathay Pacific’s subsidiary that was formerly wholly owned by CP.

   Under the agreement, Air Hong Kong will purchase a fleet of mid-range, widebody aircraft to operate and augment DHL’s network to major Asian cities.

   Air Hong Kong plans to buy five freighter aircraft by 2004, and to have a fleet of eight planes by 2010. An investment of $300 million will be committed to the venture by 2004, and an additional $100 million by 2010.

   Central to the agreement was DHL’s intent, previously announced, to develop and operate the Express Cargo Terminal at Hong Kong International Airport, which will serve as DHL’s hub for central Asia.