SINGAPORE (Reuters) – Hong Kong’s Cathay Pacific Airways Ltd, in talks to buy low-cost carrier Hong Kong Express Airways, believes budget airlines have a “unique market segment” it does not capture at present, Chief Executive Rupert Hogg said on Monday.
Cathay this month said it was in “active discussions” to acquire the airline controlled by HNA Group Co Ltd.
Revenue - Cathay - Access - Travel - Market
That would boost revenue and give Cathay access to the growing low-cost travel market at a time when a lack of slots at Hong Kong International Airport has constrained its ability to follow peers like Singapore Airlines Ltd and Qantas Airways Ltd and set up its own budget brand.
“It does interest us,” Hogg told Reuters of the budget airline sector during an interview in Singapore. “We watch Singapore Airlines and Scoot; we can see they are trying to get connectivity between them.”
Status - Talks - Hong - Kong - Express
He declined to comment on the status of talks to acquire Hong Kong Express but said the low prices offered by budget carriers helped to stimulate new travel demand, making it a “unique market segment”.
The potential acquisition comes as Cathay faces a more challenging outlook for revenue growth, according to...
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