Cathay Pacific will add a low-cost carrier (LCC) to its business after agreeing to buy HK Express from HNA Aviation Group for HK$4.93 billion.
Qantas says its proposed codeshare agreement with Cathay Pacific will have no adverse impact on the competitive dynamics on point to point routes between Australia and Hong Kong.
Cathay Pacific returned to profitability in calendar 2018 with improved passenger and cargo demand helping offset higher fuel costs and currency movements.
Cathay Pacific says it is active discussions about an acquisition involving local rivals Hong Kong Express, part of the HNA Group of airlines.
Australia's competition watchdog and Virgin Australia have argued a proposed codeshare agreement between Cathay Pacific and Qantas would lead to a lessening of competition on Australia-Hong Kong routes.
Virgin Australia chief executive John Borghetti has questioned plans from Cathay Pacific and Qantas to expand a codeshare agreement to include each other's flights from the key markets of Brisbane, Melbourne and Sydney to Hong Kong.
