Cathay Pacific Airways yesterday said it had agreed to lease two aircraft to Virgin Atlantic Airways as part of its continuing cost control efforts.
Cathay said Virgin Atlantic would lease two B747-200 Classic aircraft for five years.
The aircraft were among five Classic-class Boeings it was planning to sell or lease this year.
The Hong Kong airline has been desperately cutting costs since the slowing Asian economies halved traffic volumes and profits last year.
Cathay has laid off about 870 staff so far this year. Last month, the airline said it planned to cut a further 1,000 jobs by the end of the year, mostly through natural attrition.
Corporate development director Tony Tyler declined to reveal the financial considerations behind the lease agreement, but analysts estimated the aircraft would cost about US$20 million each in the second-hand market.
'I am pleased that we have managed to place the aircraft in a way that will generate some money,' Mr Tyler said.