Cathay Pacific to buy budget airline HK Express for $628 M

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Cathay Pacific to buy budget airline HK Express for $628 M
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Cathay Pacific to pay $286.6 million in cash and issues $341.4 million promissory loan notes to buy budget airline HK Express

Cathay Pacific Airways Airbus A350-900 airplane approaches to land at Changi International Airport in Singapore June 10, 2018.

Cathay will pay $286.6 million in cash for HK Express, and issued $341.4 million promissory loan notes, the company said in a filing.The carrier said it will continue to operate HK Express as a "standalone airline using the low-cost carrier business model". The carrier also said the purchase is a "attractive and practical way" to support long-term development and enhance competitiveness.Hong Kong Express is the city's sole budget carrier -- a sector of the industry that a marquee brand like Cathay has struggled to compete against.

The group also owns Hong Kong Airlines, another Cathay competitor that has found itself in financial difficulties in recent months.

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