Cathay Pacific says budget airline would serve 'unique market segment'

Cathay Pacific, in talks to buy LCC Hong Kong Express Airways, believes budget airlines have a "unique market segment" it does not capture at present, CE Rupert Hogg said Monday. Cathay this month said it was in "active discussions" to acquire the airline controlled by HNA Group. That would boost revenue and give Cathay access to the growing low-cost travel market at a time when a lack of slots at Hong Kong International has constrained its ability to follow peers like SIA and Qantas and set up its own budget brand. Hogg declined to comment on the status of talks to acquire Hong Kong Express but said the low prices offered by budget carriers helped to stimulate new travel demand, making it a "unique market segment". The potential acquisition comes as Cathay faces a more challenging outlook for revenue growth. <br/>