Cathay Pacific has conditionally agreed to acquire a 100% equity interest in Hong Kong Express Airways Limited ("HKE"). On completion of the transaction, on or before 31st December 2019, HKE will become a wholly owned subsidiary of Cathay Pacific.

The transaction is expected to generate synergies, as the businesses and business models of Cathay Pacific and HKE are largely complementary. It is intended to continue to operate HKE as a standalone airline, using the low-cost carrier business model.

HKE captures a unique market segment. The transaction represents an attractive and practical way for Cathay Pacific to support the long-term development and growth of its business and to enhance its competitiveness.