Cathay buys HK Express, will operate it as low-cost carrier

HONG KONG (AP) — The operator of Cathay Pacific Airways is acquiring budget regional carrier HK Express, which it will continue to operate as a low-cost carrier.

Cathay Pacific Group said Wednesday it will pay a total of 4.93 billion Hong Kong dollars ($628 million) for HK Express, which will remain a separate brand.

Cathay Pacific Group's airlines serve 130 destinations throughout Asia, Europe and North America. It acquired regional carrier Dragonair in 2006 and also owns Air Hong Kong.

HK Express, founded in 2013, serves destinations throughout East and Southeast Asia.

Cathay said it will pay for HK Express with a combination of 2.25 billion Hong Kong dollars ($286 million) in cash and 2.68 billion Hong Kong dollars ($341 million) in promissory loan notes.

Cathay said the transaction would be completed by the end of this year.