Cathay Pacific Completes Takeover Of HK Express

Cathay Pacific on Friday announced that it had completed the acquisition of Hong Kong Express Airways, which will become a wholly-owned subsidiary of Cathay.

The company said in March that it would buy Hong Kong Express at a cost of HK$4.93 billion (US628million). The purchase was made in cash and through promissory loan notes, the company said in a stock filing.

A spokesman for Cathay Pacific said that the acquisition would be beneficial to both companies, and to passengers. He added that it was also conducive to further consolidating the status of Hong Kong International Airport.

The spokesman assured Hong Kong Express passengers that the independent and low-cost operation mode of Hong Kong Express will remain unchanged.

Cathay Pacific returned to profit last year after two years of losses, after launching a cost-cutting programme.

The airline has been struggling against the competition, particularly from low-cost Chinese carriers covering Hong Kong, mainland China and South East Asia.

Hong Kong Express flies to more than 20 destinations in Asia.