Cathay Pacific has reached an agreement to acquire low-cost competitor Hong Kong Express Airways Ltd. ("HK Express") agreed.
The Hong Kong-based long-haul carrier will pay a total of HKD 4.93 billion ($ 628 million) to the Chinese HNA Group, the current owner of HK Express.
With this deal, Cathay Pacific will now control three out of four major Hong Kong airlines, including Cathay Dragon (formerly Dragonair). , its subsidiary for regional flights. The only remaining competitor is HNA Group's Hong Kong Airlines. This is the first time Cathay has entered the budget market. Both companies, Cathay Dragon and their company, are full-service carriers.
HK Express, Hong Kong's only low-cost carrier, was founded in 2004 and operates 24 short-and-medium-haul Airbus A320 Family aircraft from Hong Kong International Airport to destinations in Asia. The airline had losses of HK $ 1
Cathay Pacific and Cathay Dragon carried more than 35 million passengers last year and currently operate a combined fleet of 203 aircraft consisting of 23 single-aisle vehicles, 159 widebody aircraft and 21 cargo aircraft.
Read More: Cathay Pacific Joins the Worldwide by Easyjet Program
aviation journalist from Germany. Editor-in-chief of the International Flight Network.