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Cathay Pacific
Hong KongTransport

Exclusive | Cathay Pacific agrees deal to take over budget airline HK Express, sources say

  • The city’s biggest carrier is set to make a formal announcement as early as Tuesday
  • The acquisition would leave Cathay Pacific in control of three of Hong Kong’s four airlines

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If the acquisition of HK Express goes through, Cathay Pacific would control three of Hong Kong’s four passenger airlines. Photo: Bloomberg
Danny Lee

Cathay Pacific Airways has agreed a deal to acquire budget airline HK Express, according to sources familiar with the matter.

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Hong Kong’s biggest airline is poised to make a formal announcement as early as Tuesday, though the sources did not elaborate on the agreement between the two sides, including the financial terms.

Facing competitive pressures from a trio of rivals including no-frills carriers, jumping into the low-cost travel market could allow Cathay Pacific to attract budget-conscious travellers it does not already serve.

Three weeks ago, Cathay Pacific confirmed it was in active discussions to acquire HK Express from debt-ridden Chinese conglomerate HNA Group. The financial concerns of the parent group have spread to Hong Kong Airlines, the full-service sister airline of the low-cost carrier, which was not being considered in the deal, the company said at the time.

Both companies have sought to play down progress on the talks since they were officially confirmed on March 5, insisting that discussions were continuing, giving rise to concerns a deal could not be reached.

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