Cathay in talks to buy shares in Hong Kong Express
There can be no certainty that any agreement will be entered into, Cathay said.
Cathay Pacific Airways Ltd. is in talks to buy shares in Hong Kong’s only budget airline from Chinese conglomerate HNA Group, as Asia’s biggest international carrier seeks to gain a foothold in the region’s booming low-cost travel market.
Cathay is in “active discussions” about an acquisition involving Hong Kong Express Airways, the marquee carrier said in a statement Tuesday. There can be no certainty that any agreement will be entered into, Cathay said.
The stake purchase would give Cathay a critical foothold in the market for budget-conscious travelers that’s eaten into demand for some of its routes as it undertakes a three-year transformation program. Asia Pacific’s burgeoning market will probably see the largest increase in air traffic among regions worldwide, with almost 4 billion passenger journeys expected in the next two decades.
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