Cathay Pacific to Buy Budget Airline HK Express

by Traveleads | March 7, 2019 | In The Air Latest News

Cathay Pacific Airways Ltd is in talks to buy shares in Hong Kong’s only budget airline from Chinese conglomerate HNA Group Co.

The Hong Kong flag carrier says in a statement that it is “in active discussions about an acquisition involving HKE”.

Cathay adds that “no agreement for the acquisition has been entered into and there can be no certainty that any agreement will be entered into”.

As reported by Bloomberg, the stake purchase would give Cathay a critical foothold in the market for budget-conscious travellers. “This is part of a very big change in Cathay’s strategy,” Steven Leung, executive director of UOB Kay Hian (Hong Kong) Ltd., said by phone. “Competitors are developing budget airlines which have challenged its business. I think this deal will benefit the company in the long run.”

While Cathay acknowledged the media report, it did not comment on whether or not it is also in discussions to acquire a stake in Hong Kong Airlines, saying only that “further announcements will be made as and when appropriate”.

Please contact your Traveleads consultant for more information on availability and fares.

Latest articles

Travelling through lockdown with CarnaudMetalbox Engineering

Travelling through lockdown with CarnaudMetalbox Engineering

While lockdown meant the end of frequent travel for many companies, for others, that simply wasn’t an option. Samantha Dalton, service planner at CarnaudMetalbox Engineering, explains how having a travel management... Read More

find Out More
Brexit and business travel - UK and EU Flag

How we anticipate Brexit to affect business travel from 1 January 2021

With the end of the Brexit transition period fast approaching, we explore the anticipated implications on business travel and actions we can all take now. While more definitive updates are expected following trade talks... Read More

find Out More
Produce Investments case study

“The support is fantastic; the team always goes above and beyond for us”

Prior to 2014, Produce Investments Ltd, parent company to one of the UK’s leading suppliers of fresh potatoes, Greenvale AP, found that its processes weren’t running efficiently when it came to travel. With the... Read More

find Out More
View all articles

Website proudly developed by The Wrapped Agency