Cathay Pacific Airways (Cathay Pacific), the flag-carrying Hong-Kong based airline, has announced it has completed the purchase of low-cost carrier Hong Kong Express Airways. The deal, when announced back in March this year, was for a purchase price of KK$4.93 billion (US$628 million) in the form of HK$2.25 million in cash and the pledge to repay HK$2.68 billion of debt held by HK Express in the form of promissory notes.
Commenting on the purchase, Cathay Pacific Chief Executive Officer and HK Express Chairman Rupert Hogg said: “HK Express will continue to operate as a stand-alone airline using the low-cost carrier business model. I would also like to reassure HK Express customers that there is 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 travelers. We look forward to working with the HK Express teams to ensure a smooth transition and to continue to grow the airline in order to better serve its customers.”
Hog added: “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.” The low-cost carrier will remain a low-cost carrier which serves a niche value market segment.Email Post to a Friend