Air Hong Kong was founded in November 1986 by three local businessmen and commenced charter services with a Boeing 707-320C freighter on 4 February 1988. In June 1994, Hong Kong's largest carrier, Cathay Pacific acquired 75% holdings of the airline; and acquired the remaining 25% in February 2002. In October, Cathay Pacific entered into a joint venture with DHL Worldwide Express (DHL), that eventually saw DHL take a 40% stake in the cargo airline, while Cathay Pacific retained the other 60% holding.