Cathay Pacific Buys Dragonair

The Hong Kong-based Cathay Pacific has agreed with China’s Air China, China National Aviation Corporation (CNAC) and CITIC Pacific to buy Hong Kong’s second largest air carrier Dragonair at a price of US$1.05 billion, becoming the largest airline group in Asia.

 

With the entire acquisition of Dragonair shares (previously 17.8 per cent stakes), Cathay Pacific will have a wider accesss into the China mainland market. At present, Cathay Pacific has two air routes to Beijing and Xiamen while Dragonair has opened 23 routes to Chinese cities, including the golden air route to Shanghai.

 

Mr. Kinto Chan, Chief Representative of Cathay Pacific in Hanoi, said: “With the acquisition of Dragonair, our clients in Vietnam will have more choices with more departure schedules on Hong Kong-transited flights from Vietnam to more than 90 cities worldwide. We guarantee to minimise intervals on transited flights.”

 

Cathay Pacific is now operating four flights a day between Hanoi, Ho Chi Minh City and Hong Kong.