At the beginning of March I wrote about how Cathay Pacific confirmed that they were in talks to acquire HK Express from HNA Group. Then just a couple of days ago it became clear that an announcement was imminent, and now it has been made.
Continue reading: Cathay Pacific Acquiring HK Express For 4.93 Billion HKD
Share your questions, experiences, and thoughts below.
It's rumoured that HK Express is actually quite profitable. I wouldn't be surprised because most of the time when I check their fares it was always more expensive than the full service Hong Kong Airlines, and everytime I took their flight it was mostly full. Not to mention the lower cost base of being a LCC and running narrow bodies A320/321 fleet only.
And HK Express have some nice airport slots that Cathay might be after.
"I could see them rebranding the airline — maybe as Cathay Express"
I had the same thought. If they did, I wonder what color scheme they would use.
But hey, why not add have a LLC version of Cathay?
When I first heard Cathay is in talk to acquire HKA last week, I thought to myself it'd be interesting if CX buy HK Express instead. There's been a lot of debate on whether CX should have a low cost carrier, and now the opportunity presents itself, why not explore the possibility. HKE got a common fleet with KA and CX; got some good slots at HKG; and HKE network can add to the existing CX/KA network and enhance their hub that's consistent with their strategy lately - adding more destinations.
I don't think HK Express has to change its name. Cathay may want to keep the low cost carrier separate in terms of branding. Think SQ and Tiger Airways/Scoot. Dragonair changed its name because Cathay brand is not as well known as Dragonair in China; thus, the new brand can help Cathay's name recognition in China and letting people know these two airlines are related. It'd be interesting to see flying HK Express would earn Asia Miles if CX acquired HKE.
HK Express is a pretty solid LCC. Fares are great, seats are not too bad. Hope they can stay independent and keep selling cheap tickets.
It is definitely in Cathay's best interest to launch a lcc. HK Express has everything they need! The name Cathay Express would be really nice. This Express airline would continue to do a good job to capture the leisure market of travelers. Cathay has done a good job becoming profitable once again!
No reason not to just buy it and keep it as a separate LCC. Also no reason to change the name - this has the double benefit of not "tainting" the Cathay premium name and HK express is already well known in the region.
I hate that when they change Dragonair to Cathay dragon and change the name and the logo, which essentially is the representation. Cathay, please don't ruin another airline with the word CATHAY and the shark fin logo on it
If they acquire Hong Kong Airlines as well then they will definitely be absorbed into the main Cathay Pacific
Oh no, I take their Taiwan - HKG flight quite a bit. They fly twice daily to Taichung which is a small airport with only 6 gates, and the fare is only 100-150usd round trip. It's the cheapest way from Taiwan to Hong Kong, and it's almost always full.
I’m supposed to be taking Hong Kong Airlines next Monday on their mistake fare to BKK. After all of these rumors over the last two months, the only mistake was my buying the ticket.
Cathay Pacific bought around 30% shares in Dragonair in 1990 (5 years after founding), and until September 2006, they’re effectively competing against Cathay Pacific in non-Mainland China routes, such as Bangkok, Tokyo and Taipei. They even wanted to buy higher MTOW A330s in order to fly to Sydney in 2005 (might be one reason that Dragonair was took over by Cathay Pacific in 2006). I guess Cathay Pacific could hold a minority state in HK Express and wait for few years before taking over.
Flew them a few weeks back to/from Nha Trang. Decent flight, just really sucked having to be bussed to/from the plane in HKG. That’s not a fun experience imo. Especially if you’re on the first bus and have to wait for 2 more...you end up sitting on the tarmac for quite a while.
Cathay Pacific might be shutting all HK Express routes and transfer their A320s to Cathay Dragon, so they can renew their fleets for a much cheaper price (ps: all HK Express A320s are far newer than Cathay Dragon A320s). Not surprising if they decide to cancel current A321neo orders. Now HNA ran out of money, so by this sale, they can receive short-term cash boost. It’s a win-win situation if that actually go through.
I predict that Hong Kong Airlines will also be acquired by Cathay and if that does happen I would expect to see the airline being folded into the main Cathay Pacific and possibly Cathay Dragon as well.
Then the entire city of HK will be held hostage by a single airline... well, not my problem, i will just avoid HKG when routing through Asia.
@Lucky I believe the independent option is the best one. Problem is going to be the unions, especially in times of profitability.
The reason why CX acquires UO is to block Jetstar from entering HKG.
Jetstar works on establishing a subsidiary in Hong Kong for so many years, but CX against it every time.
If CX owns UO, CX can claim that HKG doesn't need another LLC and keep Jetstar outside the door forever.
CX didn't fold KA because CX can only fly to PEK and PVG. The other China destinations are belong to KA. If CX folds KA, they can't take over the rights. That's the point to keep KA alive.
@Woot how would or could an entire city be held hostage by one airline when there are countless other airlines that fly in and out of Hong Kong every day and multiple times a day for several airlines?
I have taken HK Express once to Japan, and it is fine as a mode of transport - it will get you from A to B without any bells and whistles. However, what I found most shocking was that you are not permitted to bring your own food on board - surely, that's not fair? It's one thing if you ban everyone from eating and drinking (like on the Hong Kong subway), but quite another when a public transport carrier prohibits you from eating unless you buy the food from it!
It's now official: Cathay and HNA agreed HK Express transaction for US$628 million, pending government approval
Cryptic quote “We intend to continue to operate Hong Kong Express as a stand-alone airline using the low-cost carrier business model,”
but suggests they will change the name
@Lucky thanks for the update and please change it from 6.3 million HKD to 6.3 billion HKD.
@Lucky Sorry, haha. My typo. I meant please change it from 4.93 million HKD to 4.93 billion HKD.
@Lucky you have the 4.93 billion HKD in the title, but in the actual story it is written at 4.93 million HKD instead. Thanks for all of your wonderful stories and updates. It is a treat to read your articles and sorry for being so nit picky, hehe.
Flew HK Express once from Tokyo to Hong Kong in 2017, red-eye. At the time they were small but the flight was crazy cheap and fit within my travel schedule. My only complaint was the leg-room.. it was cramped.
Time to update this post: Cathay has formally acquired HK Express on July 19, and now you can redeem HK Express flights using Asia Miles. They will also offer a conversion from reward-U (HK Express reward program) to Asia Miles in the 4th quarter. I'm still hoping that you can earn Asia Miles on HK Express...it may still happen...
My school, which is a huge customer of CX/KA when it comes to overseas trips, put UO on the list after this acquisition!
Only flew with UO once (HKG to RMQ and back) and experience was AWFUL on the outbound. The cabin was quite hot and I needed to wait for ALMOST ONE HOUR for the pushback. The ground time was even longer than the flight time.
Going on school trip in Apr 2020, and got a notice that they are booking CX or UO (!) tickets for us! But I am sure that after the acquisition, UO is going to have a better flight service, matching its parent company.