INSUBCONTINENT EXCLUSIVE:
Image copyrightGetty ImagesCathay Pacific will buy low-cost carrier Hong Kong Express for $4.93bn Hong Kong dollars ($628m).The purchase
will be made in cash and through promissory loan notes, the company said in a stock filing.Hong Kong Express, which flies to destinations
across Asia, will become a wholly-owned subsidiary of Cathay Pacific
Cathay Pacific has been overhauling its business to cut costs, and returned to profit in 2018."We intend to continue to operate Hong Kong
Express as a stand-alone airline using the low-cost carrier business model," a Cathay Pacific spokesperson said in a statement
Hong Kong Express captures "a unique market segment" the spokesperson said, adding that the deal "represents an attractive and practical way
for the Cathay Group to support the long-term development and growth of our aviation business".The transaction is expected to be completed
Cathay Pacific returned to profit last year after two years of losses, after launching a cost-cutting programme
The airline has been struggling against competition, particularly from low-cost Chinese carriers covering Hong Kong, mainland China and
South East Asia.Last year, it also became subject of a data breach in its IT systems, jeopardising the personal information of up to 9.4
