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

Travel updates - Coronavirus

Coronavirus – how does it affect my trip?

What is Coronavirus? The Novel Coronavirus is a respiratory illness and is a new strain, previously unheard of in humans. The virus was first seen in Wuhan, China and is thought to have originated at a seafood market;... Read More

find Out More
Maintaining healthy habits while travelling - Traveleads - Bupa

Maintaining healthy habits while travelling

We know our customers are always on the go – whether you’re on the third flight of the day, in hour two of a five hour stopover or flying from London to Hong Kong for a board meeting, sleep and sustenance can often be... Read More

find Out More

Traveleads named official Travel Partner for major energy industry event

The Energy Exports Conference (EEC), organised by the Energy Industries Council, (EIC) returns to Aberdeen for the second year in June 2020 and independent travel management company, Traveleads is delighted to... Read More

find Out More
View all articles

Website proudly developed by The Wrapped Agency