Hong Kong flag carrier Cathay Pacific announced that it has completed the acquisition of Hong Kong Express Airways (HK Express). Although now a wholly owned subsidiary of Cathay Pacific, HK Express will remain a stand-alone low-cost carrier to serve a niche market segment.
Cathay Pacific chief executive officer and HK Express chairman Rupert Hogg confirmed that “HK Express will continue to operate as a stand-alone airline using the low-cost carrier business model.”
He also assured HK Express customers that there will be no change to the airline’s operating model and that business will continue as usual. “There will be more value fares and more destinations available to travellers.”
Leading the HK Express team as CEO is Ronald Lam, who has worked with the Cathay Pacific group for more than 20 years, most recently as Cathay Pacific director of commercial & cargo.
Hogg explained that the acquisition of HK Express is an attractive and practical way for the Cathay Pacific group to develop and grow its aviation business over the long term, while also enhancing the competitiveness of its Hong Kong home base as a leading aviation hub.
He said: “Our respective businesses and business models are largely complementary. HK Express captures a unique market segment that, together with the extensive network offered by the Cathay Pacific Group, could multiply connection opportunities through Hong Kong. This will bring tremendous benefits to the travelling public with more choices and greater convenience for their travel experience.”
Cathay Pacific, Asia’s biggest international carrier, entered March 27, 2019 into a share purchase agreement to acquire 100% of HK Express, the acquisition putting it in control of three of the four airlines in the territory, after carriers Cathay Pacific and Cathay Dragon.
The latest acquisition will give Cathay Pacific access to the growing budget-travel market, considering how a lack of capacity at Hong Kong International Airport has limited its capability to set up its own budget brand.
Photo: N509FZ
