After initial reports from the South China Morning Post, Cathay Pacific has confirmed it will be acquiring local budget carrier HK Express.

In its disclosure to the Stock Exchange of Hong Kong, Cathay Pacific will acquire 100% of the airline in a deal worth a combined HKD $4.93 billion (USD $628.1 million) of cash and non-cash payments. With the deal expected to be completed before the end of the year (December 31, 2019), HK Express will become a wholly owned subsidiary of Cathay Pacific.

Cathay Pacific will be taking over HK Express from its current parent company – China-based HNA Group – which currently has been Cathay’s main local Low Cost Carrier (LCC) competitor since it was founded in 2005.



The Cathay group stressed that both carriers businesses and business models are complementary, and HK Express will continue to operate as a stand-alone LCC.

With the purchase, Cathay will have its own LCC under its wing following other regional competitors such as Korean Air, Japan Airlines, and All Nippon Airways (ANA) who have ventured into the budget travel market with their own subsidiaries or stake in local LCCs.

When the acquisition is completed, it will leave HNA Group airline Hong Kong Airlines as the sole Hong Kong-based competitor for Cathay Pacific group.



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