Cathay Dragon ceases operations on 21 October 2020 while HK Express will be renamed Cathay Express

Report by : Gan Yung Chyan, KUCINTA SETIA

On 21 October 2020, Cathay Pacific Airways has announced that its regional subsidiary Cathay Dragon has ceased operations due to the ongoing pandemic and losses  it incurs while its low-cost subsidiary HK Express will be merged into Cathay Pacific and renamed as Cathay Express.

The planned Cathay Express will operate routes covered by HK Express and non-profitable routes of Cathay Dragon. Profitable routes of Cathay Dragon will be taken over by Cathay Pacific after the air traffic rights are transferred to the parent company.  

Cathay Pacific acquired local rival Dragonair in the 1990s as its regional subsidiary. In 2016, it reorganized Dragonair into Cathay Dragon in 2016. In July 2019, it spent about 5 billion Dollars to acquire HNA’s low-cost airline HK Express, overturning Cathay Pacific’s previous claims that it would not participate in low-cost operations.  At that time, Cathay Pacific CEO and Chairman of HK Express He Gao sent a letter to employees saying that HK Express will not merge with Cathay Pacific and will continue to develop independently in the direction of Low-Cost Carrier.