HONG KONG: Cathay places new orders for 27 more aircraft

Cathay Pacific Airways announced it will further boost its investment in fleet modernisation and growth by adding a further 27 aircraft to its fleet. The airline has entered into an agreement to buy 15 more Airbus A330-300s and a separate agreement with Boeing for 10 more Boeing 777-300ERs. It has also inked a deal with […]


Cathay Pacific Airways announced it will further boost its investment in fleet modernisation and growth by adding a further 27 aircraft to its fleet. The airline has entered into an agreement to buy 15 more Airbus A330-300s and a separate agreement with Boeing for 10 more Boeing 777-300ERs. It has also inked a deal with aircraft leasing company International Lease Finance Corporation (ILFC) to add two more Airbus A350-900s. All of these new aircraft will be delivered before the end of 2015. The airline also has an existing order for 10 Boeing 747-8 Freighters. The 27 new aircraft have a list price of about HK$51 billion (US$6.6 billion), but will be acquired at a considerable discount, as is the usual practice in such transactions. The latest orders come on top of the airline’s biggest-ever order, made in September last year, for 30 Airbus A350-900s to be delivered from 2016 to 2019 and six Boeing 777-300ERs to be delivered between 2013 to 2014. Cathay said this latest order will enable it to replace older, less fuel-efficient aircraft as they are progressively retired from the fleet and at the same time continue with the expansion of its network. Cathay Pacific now has a total of 91 new aircraft on order for delivery between now and 2019. Their value at list prices is about HK$185 billion. In addition, Cathay Pacific is investing HK$5.5 billion in the Cathay Pacific Cargo Terminal now being built at Hong Kong International Airport, and another HK$1 billion in new products and services from now to the end of this decade. “Our plan is to retire our 21 Boeing 747-400 and 11 Airbus A340-300 aircraft before the end of the decade as we take delivery progressively of new generation aircraft that will provide much greater fuel and operating cost efficiencies. This is important both for environmental reasons and from a financial perspective as fuel remains our greatest single cost,” said Cathay Pacific chief executive Tony Tyler.