Cathay Pacific will buy low cost airline Hong Kong Express

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Cathay Pacific will purchase the low cost carrier Hong Kong Express for $ 4.93 billion from Hong Kong ($ 628 million).

The purchase will be made in cash and through loan notes, the company said in an archival document.

Hong Kong Express, which serves other Asian countries, will become a wholly owned subsidiary of Cathay Pacific.

Cathay Pacific restructured its business to reduce costs and returned to profit in 2018.

"We intend to continue to operate Hong Kong Express as a stand-alone airline using the low-cost carrier business model," said a spokesman for Cathay Pacific in a statement.

Hong Kong Express "seizes" a single market segment, "said the spokesman, adding that the agreement" represented a practical and attractive way for the Cathay Group to support the development and the long-term growth of our aerospace business ".

The transaction is expected to be finalized by the end of the year.

Recovery plan

Cathay Pacific returned to profit last year after two years of losses and the launch of a cost reduction program.

The airline fought against competition, especially that of low-cost Chinese carriers covering Hong Kong, mainland China and Southeast Asia.

Last year, he was also the victim of a data breach in his computer systems, endangering the personal information of 9.4 million passengers.