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Hong Kong's Cathay Pacific to sell six Boeing aircraft to BOC Aviation

FILE PHOTO: A Cathay Pacific Boeing 777-300ER plane lands at Hong Kong airport in Hong Kong, China August 14, 2019. REUTERS/Thomas Peter/File Photo

(Reuters) - Hong Kong's Cathay Pacific Airways Ltd 0293.HK on Monday said it would sell six Boeing BA.N 777-300ER aircraft and its associated equipment for $703.8 million to BOC Aviation Ltd 2588.HK.

The sale will enable Cathay Pacific to realize cash which will be used towards its general working capital requirements, the company said in a statement.

The carrier last week warned of a substantial loss in the first half of the year and flagged more cuts in flights due to the “unprecedented challenge” from the coronavirus outbreak that has forced it to ground more than half of its fleet.

Cathay said it would lease the aircrafts back from BOC Aviation.

(This story has been refiled to fix typo in headline and first paragraph)

Reporting by Niyati Shetty in Bengaluru, editing by Louise Heavens