HONG KONG March 9, 2011, 06:29 am ET
Cathay Pacific Airways is ordering 27 new Airbus and Boeing jets to expand services after profit tripled last year to a record.
Hong Kong's biggest airline said Wednesday it signed a deal with Airbus SAS for 15 A330-300 airplanes and another with Boeing Co. for 10 777-300ER jets. Cathay has also agreed to lease two Airbus A350-900s from International Lease Finance Corp. — adding this jet to its fleet for the first time.
The airline said the 27 jets are worth 51 billion Hong Kong dollars ($6.5 billion) at sticker prices but it's getting a big discount, a common practice in such deals.
The new jets will allow Cathay to continue expanding its passenger routes as well as help the airline save on fuel, its biggest cost, by retiring older, thirstier jets.
Cathay's Airbus A330-300s are primarily used on routes to Australia, India and other countries in Asia while its Boeing 777-300ER jets are mainly used on long-haul routes. All will be delivered by the end of 2015.
The announcement follows the airline's biggest ever order announced in September, for 36 aircraft, including 30 from Airbus and six from Boeing.
The airline is in talks to buy 14 more aircraft, but did not give any more details.
HK's Cathay Adds 27 Boeing, Airbus Jets To Fleet : NPR
Excerpt from
CX announces 2010 annual results, record profit of HK$14b
Posted On: 09 Mar 2011
In 2010 we took delivery of seven new aircraft. In August 2010 we announced our biggest-ever aircraft order, of 30 Airbus A350-900s (to be delivered between 2016 and 2019) and of six more Boeing 777-300ERs. In December, a further two Airbus A350-900s were ordered. In March 2011, Cathay Pacific announced the acquisition of 15 new Airbus A330-300 aircraft and 10 new Boeing 777-300ER aircraft. Cathay Pacific is also in discussions which could result in the acquisition of 14 further aircraft. Unfortunately, there will be a delay in the delivery of our new-generation Boeing 747-8F freighters, with the first now scheduled to arrive in August 2011.