A Cathay Pacific passenger plane prepares to take off from Hong Kong's international airport on March 13, 2019

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Cathay Pacific will purchase low-cost provider Hong Kong Specific for $four.93bn Hong Kong ($628m).

The acquisition might be made in money and thru promissory mortgage notes, the corporate mentioned in a inventory submitting.

Hong Kong Specific, which flies to locations throughout Asia, will turn out to be a wholly-owned subsidiary of Cathay Pacific.

The transaction is predicted to be accomplished by the top of the yr.

“We intend to proceed to function Hong Kong Specific as a stand-alone airline utilizing the low-cost provider enterprise mannequin,” a Cathay Pacific spokesperson mentioned in an announcement.

Cathay Pacific had a difficult 2018 after posting its first ever back-to-back annual loss in March final yr.

It was the topic of a data breach in its IT systems in October, jeopardising the private data of as much as 9.four million passengers.

The airline has struggled in opposition to competitors, notably from low-cost Chinese language carriers protecting Hong Kong, mainland China and South East Asia.