Hong Kong's Cathay Pacific to keep Dragonair brand after acquisition
HONG KONG (XFNews-ASIA) - Cathay Pacific said it plans to integrate the operations of Dragon Airlines Ltd (Dragonair) into the group, while keeping the Dragonair brand name separate from its own, following the completion of its acquisition of the airline.
He also said Cathay's decision to retain the Dragonair brand name is in no way intended to create a "sub-brand", as other airlines have done, to try and establish a presence in the "no frills" carrier market.
"Networks and schedules will be integrated. Sales teams will be able to market single 'through fares' across Cathay and Dragonair services in the same way connecting Cathay flights, making us more competitive in the marketplace," he said.
Cathay last month agreed to acquire all remaining shares in Dragonair that it does not currently own, amounting to an 82.21 pct stake, in a deal worth 8.22 bln hkd to be paid via a combination of cash of 820 mln hkd and issue of 548 mln new Cathay shares at 13.50 hkd per share.
(1 usd = 7.8 hkd)