Cathay Pacific Airways has confirmed it is interested in buying a stake in low-cost airline Hong Kong Express Airways.
It would mark a first move into the budget airline market for the Hong Kong carrier.
HK Express is owned by debt-ridden China conglomerate HNA Group, which is looking to offload a number of assets.
A Cathay spokesperson said there is strong demand for low-cost services in Hong Kong and a low-cost airline could be complementary to its full service operating model. However, in a statement, Cathay said: "No agreement for the acquisition has been entered into and there can be no certainty that any agreement will be entered into."
According to a Reuters report, HK Express has a market value of around US$300 million.
