Hong Kong flag carrier's first foray into the budget sector will put it in control of three of the four airlines at one of Asia’s busiest airports
A passenger walks to the first class counter of Cathay Pacific Airways at Hong Kong Airport in Hong Kong, China, in this file photo taken on April 4 2018. Picture: REUTERS/BOBBY YIP— Hong Kong flag carrier Cathay Pacific says it will buy budget airline HK Express for more than $600m as it moves to counter competition from the increasing number of low-cost carriers in the region.
“HK Express captures a unique market segment,” Cathay said. “This 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 generate synergies as the businesses and business models of Cathay Pacific and HKE are largely complementary,” it said. HK Express flies to several regional cities including in Japan, South Korea, mainland China, Thailand and Vietnam. The overhaul appears to have paid off. Earlier in March Cathay Pacific announced a net profit of HK$2.35bn in 2018 ending two successive annual losses.
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