Swire Pacific Limited and Cathay Pacific Airways Limited have announced an agreement to sell their 19.998% and 10% respective interests in Hong Kong Air Cargo Terminals Limited (Hactl) and Hactl Investment Holdings Limited (HIHL). The interests in Hactl and HIHL are being purchased by existing Hactl and HIHL shareholders: Jardine Matheson & Company Limited, The Wharf (Holdings) Limited, Mosgen Limited (a wholly owned subsidiary of Hutchison Whampoa Limited), Hutchison Port Holdings Limited and China National Aviation Corporation (Group) Limited. The sale is valued at HK$1,279,872,000 for Swire Pacific and HK$640 million for Cathay Pacific. Both companies will use the proceeds for general working capital purposes.
The sale of its interests in Hactl by Cathay Pacific fulfils an undertaking made to the Airport Authority Hong Kong in March 2008, when the company was awarded, through its subsidiary Cathay Pacific Services Limited, the franchise to invest in, design, construct and operate a new air cargo terminal at Hong Kong International Airport. Cathay Pacific has already resumed work on the state-of-the-art HK$5.5 billion air cargo terminal, having suspended development in January 2009 as a result of the severe economic downturn. The airline recently awarded the HK$4.2 billion contract for the construction of the terminal to Gammon Construction Limited in partnership with Hip Hing Construction Company Limited and the facility is scheduled to begin operations in 2013.
Swire Pacific and Cathay Pacific have reached agreement for Swire Pacific to buy all of the shares in Hong Kong Aircraft Engineering Company Limited (HAECO) currently held by Cathay Pacific; this shareholding represents approximately 15% of the issued share capital in HAECO. Upon completion of the transaction, Swire Pacific will hold approximately 60.96% in HAECO. Pursuant to Rule 26.1 of the Takeovers Code of The Stock Exchange of Hong Kong Limited, Swire Pacific will be required to make a mandatory unconditional general offer in cash for all the issued shares in HAECO not already owned or agreed to be acquired by Swire Pacific and its subsidiaries on completion of the transaction. The offer will be made by Asia Pacific Advisors (APA) and HSBC on behalf of Swire Pacific.
Hong Kong Aero Engine Services Limited (HAESL) has signed a five-year contract with Hainan Airlines to provide comprehensive repair and overhaul support for the Rolls-Royce Trent 500 engines that power Hainan's fleet of three A340-600 aircraft. Full refurbishment work on the first engine under this contract is underway in HAESL's workshop. The contract is worth some US$120 million over the five-year period. HAESL also provides similar support for Hainan's Trent 700 engines, which power its A330-200 aircraft. Hainan Airlines is the largest privately-owned airline and the fourth largest airline in Mainland China.
Dragonair has been voted "World's Best Regional Airline" in the annual World Airline Survey™ run by Skytrax, a London-based research organisation which runs the World Airline Awards. This is the first year this award category has been included in the survey. About 18 million international travellers voted in the survey, which was carried out between July 2009 and April 2010. Award winners are determined by measuring over 35 different aspects of passenger satisfaction for product and service standards, covering the experience across both airport and onboard environments.
Cathay Pacific Airways has announced its intention to resume operations to Haneda Airport in Tokyo with a twice-daily service, in addition to serving Narita International Airport. The new service will begin in October, subject to the necessary regulatory approvals. The airline first operated to Haneda in 1959, when it launched its Tokyo service. By 1978, it was operating four passenger flights a day and four freighter services a week before all international airlines switched their scheduled operations from Haneda to Narita that year. Cathay Pacific currently operates six flights a day - five direct and one via Taipei - to Narita.
In a bid to further boost its services, Cathay Pacific will add two daily flights to Taipei - the first being introduced on 11th June and the second on 1st July - to make a total of 94 flights a week. From September, the airline will increase the number of flights to Jakarta from 14 to 18 a week. Cathay Pacific has also signed a code-share agreement with oneworld partner Mexicana Airlines for passengers travelling between Hong Kong and two major cities in Mexico; the agreement comes into effect on 14th June. Under the code-share, Mexicana's flights from Mexico City and Guadalajara to Cathay Pacific's North American gateways in San Francisco, Los Angeles and Vancouver will carry the "CX" code, while Cathay Pacific's daily services from Hong Kong to these gateways will carry Mexicana's "MX" code. In May, Cathay Pacific announced a code-share with oneworld partner, LAN, connecting passengers to Santiago, the capital city of Chile. With the new arrangement with Mexicana, the Hong Kong carrier will offer code-share services with seven of the alliance's 11 full members.
The Swire Group Charitable Trust and the Cathay Pacific Group have donated HK$5 million to support UNICEF relief efforts in Qinghai, the western China province left devastated after an earthquake on 14th April. The donation includes around HK$1 million given by local and overseas staff working for Cathay Pacific, Dragonair and other Cathay Pacific subsidiaries, including Cathay Pacific Catering Services, Cathay Holidays, Hong Kong Airport Services and Vogue Laundry. Every dollar raised through staff donations has been matched by the Cathay Pacific Group. The funds presented to UNICEF also include around HK$1.5 million from the Change for Good in-flight fundraising programme on Cathay Pacific and Dragonair flights between 23rd April and 7th May; these inflight donations have been matched by The Swire Group Charitable Trust.
In May, Swire Coca-Cola Hong Kong Limited introduced two new green tea-flavoured products on the Hong Kong market: Spritea - part of the popular Sprite family of carbonated soft drinks - and Hi-C Chrysanthemum Green Tea flavour.
