Cathay Pacific completes takeover of Hong Kong’s only low-cost airline, paying HK$4.93 billion for HK Express
Cathay launched a takeover bid for low-cost carrier, which had been backed by indebted Chinese conglomerate HNA Group, on March 27. Ronald Lam, Cathay’s director of commercial and cargo, will head the budget airline as CEO.
Cathay Pacific Airways completed the takeover of Hong Kong’s only low-cost airline, HK Express, the company announced on Friday night, putting it in control of three of the city’s four commercial passenger airlines. The acquisition comes as the city’s biggest airline faces renewed competitive pressure on long-haul routes; the takeover enables the carrier to shore up its business in the region to limit the challenge from rivals. Cathay Pacific launched a takeover bid for HK Express, which had been backed by indebted Chinese conglomerate HNA Group, on March 27 and assumed full control of the business after paying HK$4.93 billion (US$630 million).
