Cathay buys Hong Kong Express to enter budget airline market
Cathay Pacific Airways agreed to buy Hong Kong’s only budget carrier to enter the no-frills market, after more than a decade resisting such a move to focus on premium services. Cathay will pay HK$2.25b (US$287m) in cash for Hong Kong Express Airways the carrier said in a filing Tuesday. The carrier will also be issued $2.68b in promissory loan notes for the transaction. The deal is expected to be completed by Dec 31, Cathay said. The acquisition will give Cathay a crucial piece of business that’s missing from its operations and will lift its market share to more than 50% in Hong Kong. It will also provide Cathay with a new revenue source as the region’s growing economies allow more people to fly and as Chinese rivals expand with direct flights to Europe and US, bypassing the need to transit in Hong Kong. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2019-03-27/oneworld/cathay-buys-hong-kong-express-to-enter-budget-airline-market
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Cathay buys Hong Kong Express to enter budget airline market
Cathay Pacific Airways agreed to buy Hong Kong’s only budget carrier to enter the no-frills market, after more than a decade resisting such a move to focus on premium services. Cathay will pay HK$2.25b (US$287m) in cash for Hong Kong Express Airways the carrier said in a filing Tuesday. The carrier will also be issued $2.68b in promissory loan notes for the transaction. The deal is expected to be completed by Dec 31, Cathay said. The acquisition will give Cathay a crucial piece of business that’s missing from its operations and will lift its market share to more than 50% in Hong Kong. It will also provide Cathay with a new revenue source as the region’s growing economies allow more people to fly and as Chinese rivals expand with direct flights to Europe and US, bypassing the need to transit in Hong Kong. <br/>
