HK Express stake sale gets clearance

The Hong Kong government yesterday approved the sale of a 45 per cent stake in Hong Kong Express Airways to HNA Group, the state-owned parent of Hainan Airlines, for an undisclosed sum.

Earlier this year, HNA Group bought an identical interest in Hong Kong's other small airline, CR Airways.

The latest transaction paves the way for an eventual merger of the two small airlines.

Both airlines offer similar services using planes carrying fewer than 100 passengers.

'We have not been talking [with CR Airways], but consolidation of our partnership with the HNA Group makes it likely we will work more closely together in the future,' HK Express chief executive Andrew Tse said.

The deal 'will allow us to strengthen our sales distribution network in China, which was one of the main reasons we sought the partnership', Mr Tse said.