Air China – the signing of a framework agreement to establish a jointly owned cargo a
From Tony Tyler,
Today we announced a very significant development in our relationship with Air China – the signing of a framework agreement to establish a jointly owned cargo airline. Our intention to do this was announced when we first forged our strategic partnership with Air China in June 2006, and it is very exciting to see the project launched today.
In joining together with Air China we will use an existing cargo airline, Air China Cargo Co Ltd (ACC), as the platform for the joint venture. ACC is currently a wholly owned subsidiary of Air China but, under the agreement signed today in Beijing, Cathay Pacific will acquire a 25% equity interest directly in ACC and also fund an offshore trust, in the form of a loan, to hold another 24% economic interest in the carrier.
The total value of our investment in the joint venture will be RMB 1,669 million, which will be funded by the sale of four of our Boeing 747-400 BCF freighters and two spare engines to ACC.
The rest of the annoucement is on IntraCX.
This answers a question I had in regard to 30 or 40 Trainers moving to the 777 fleet. I was wondering how that would affect the 747 fleet, but with the "sale" of four aircraft as part of the deal, then they do not need as many crew on the aircraft.