Cathay Pacific eyes stakes in HNA Hong Kong airlines

Cathay Pacific is interested in taking minority stakes in HK Express and Hong Kong Airlines, according to a report from Bloomberg. The international carrier has reportedly been in preliminary talks with the conglomerate backer of these two smaller airlines, HNA Group Co, though no further statement or details have been revealed. Cathay Pacific’s interest in these two airlines is likely related to gaining access to the routes that Hong Kong Express Airways and Hong Kong Airlines have the rights to fly. Following Cathay Pacific’s difficulties over the last year, including poor choices regarding fuel hedging and a highly publicised data leak, the airline needs an edge. This is especially the case as more low budget regional carriers and high-end luxury fliers threaten to steal Cathay’s lunch from both sides. HNA’s interest in an agreement is also unsurprising. Rumours abound regarding financial difficulties at HNA, which was revealed to be attempting to sell up to a third of its stock in August 2018. A sale that was made more difficult with the death of co-chairman Wang Jian. There has also been a disconcerting amount of upper-level staff departures at Hong Kong Airlines. Most recently CMO George Liu left the company at the start of February. Marketing has reached out to representatives at both Cathay and HNA for comment on the situation with no response as of yet.