Cathay Pacific confirmed on Tuesday it is in talks to buy a stake in Hong Kong's sole low-cost airline, as it competes to counter the growth of budget carriers in the region. Asia largest airline said it was "in active discussions about an acquisition involving HKE (Hong Kong Express)".
"No agreement for the acquisition has been entered into and there can be no certainty that any agreement will be entered into," it added in a statement to Hong Kong's stock exchange. Hong Kong Express is owned by HNA Group, a struggling Chinese conglomerate that has been looking to lower its debt pile. The group also owns Hong Kong Airlines, another Cathay competitor that has found itself in financial difficulties in recent months.
Local and international media previously reported Cathay had held preliminary talks to buy stakes in both Hong Kong Express and Hong Kong Airlines. But Tuesday's statement only confirmed talks to acquire a stake in Hong Kong Express.
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