Cathay Pacific to acquire competitor Hong Kong Express

Cathay Pacific has entered into an agreement for the acquisition by Hong Kong Express Airways Ltd. its competitor at low cost (known as "HK Express").

The Hong Kong-based long-haul airline will pay a total of $ 4.93 billion from Hong Kong ($ 628 million) to the Chinese group HNA, the current owner of HK Express.

As a result of this agreement, Cathay Pacific will now control three of the four major airlines in Hong Kong, including Cathay Dragon (formerly Dragonair), its regional airline subsidiary. The only remaining competitor is Hong Kong Airlines, a troubled company belonging to the HNA group. This is the first time Cathay has entered the low-cost airline market. Cathay Dragon and himself are both full-service carriers.

HK Express, Hong Kong's only low-budget airline, was founded in 2004 and operates 24 A320 family aircraft on short-haul and medium-haul routes from Hong Kong International Airport to Asian destinations. The airline recorded losses of HK $ 141 million (US $ 18 million) in 2018.

Cathay Pacific and Cathay Dragon transported more than 35 million passengers last year and currently operate a combined fleet of 203 aircraft, including 23 single-aisle aircraft, 159 large-body aircraft and 21 cargo aircraft.

Read more: Cathay Pacific joins the Worldwide by Easyjet program