Cathay Pacific confirms interest in acquiring HK Express

Last week, a rumour began circulating that Cathay Pacific was interested in taking minority stakes in HNA Group carriers HK Express and Hong Kong Airlines. Today, Hong Kong's flagship airline has confirmed that it is in active discussions about an acquisition involving HK Express. In a statement, Cathay said it has noted the media reports suggesting the airline may be in talks with HNA Group Co to acquire shares in HK Express, the first Hong Kong-based budget airline, and Hong Kong Airlines. Cathay confirms that it is "in active discussions about an acquisition involving HK Express." But it's believed that the discussions are in its preliminary stages, as "no agreement for the acquisition has been entered into and there can be no certainty that any agreement will be entered into." Both HK Express and Hong Kong Airlines have reportedly been experiencing financial difficulties as of late. Yesterday, Hong Kong Airlines was said to be planning a reduction to the size of its fleet from 38 to 28 aircraft. The carrier did not deny the suggestion, saying that it was working on consolidating and optimising the network and fleet.