- Mar 22, 2005
news.airwise.com said:Cathay Pacific Close To Dragonair Takeover
June 5, 2006
Hong Kong's Cathay Pacific Airways is close to announcing a takeover of smaller China-focused rival Dragonair in a deal reported to be worth USD$1.3 billion, sources familiar with the matter said.
The long-anticipated buyout would give Cathay the profitable routes to the fast-growing mainland China market it has long sought and create a formidable rival for local airlines such as China Southern Airlines and China Eastern Airlines.
"Simple logic is Cathay needs a network into China, Dragonair's got one," said CLSA aviation analyst Kevin O'Connor. "The devil will be in the details."
The 'devil' appears to be involved in a few airline deals going on right now. Interesting if this deal succeeds then Cathay would topple QF as Asia-Pacfic's biggest airline company!