Cathay Pacific Airways is to buy low-cost carrier Hong Kong Express, which flies to destinations across Asia, for HK$4.93 billion (€557m).
“We intend to continue to operate Hong Kong Express as a stand-alone airline using the low-cost carrier business model,” said Cathay Pacific. “Hong Kong Express captures a unique market segment and the deal represents an attractive and practical way for the Cathay Group to support the long-term development and growth of our aviation business and to enhance the competitiveness of the Hong Kong hub during a time of intense regional competition.”
The transaction is expected to be completed by the end of the year. Cathay Pacific returned to profit last year after two years of losses, after launching a cost-cutting programme. The deal will see Cathay controlling three of the four airlines at one of Asia’s busiest airports.