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Cathay Pacific inks Boeing deal for new aircraft

Updated: 2011-08-10 16:40

By Chen Qide (chinadaily.com.cn)

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SHANGHAI - Cathay Pacific announced on Wednesday that it has inked a deal with Boeing to purchase four 777-300ER passenger aircraft and eight 777-200F freighters.

"It is a firm measure the airline has taken to modernize its fleet in order to expand business with the markets in mainland China and other parts of the world,'' said Cathay Pacific Chief Executive John Slosar.

The deal costs an investment of HK$25.6 billion, but the new aircraft will be acquired at a considerable discount as is the usual practice in such transactions, said Slosar.

The aircraft, which will be powered by General Electric GE90 engines, are expected to be delivered to the airline between 2013 and 2016.

The airline already operates 22 Boeing 777-300ERs on its key long-haul routes, and with the latest purchase, it will have another 28 on order for delivery up to 2015.

"We plan to retire the older aircraft, including 21 Boeing 747-400s and 13 Airbus A340-300s, before the end of the decade as it progressively takes delivery of new-generation aircraft that will provide much greater fuel and operating cost efficiencies,'' he said.

The Boeing 777-200F, a new aircraft type for Cathay Pacific, will be used to grow its freighter fleet by replacing older, less fuel-efficient Boeing 747-400BCF Converted Freighters.

For a typical 3,000 nautical mile trip, for example, the 777-200F will burn 15 percent and 24 percent less fuel per payload tonne than the 747-400F and 747-400BCF respectively, said the chief executive.

He said the new aircraft, which can fly 4,900 nautical miles with a full payload of 102 tonnes, will primarily be used on regional and European routes. The airline is also taking delivery of 10 new Boeing 747-8 freighters, with the first two scheduled to arrive in late September and another three being delivered by the end of 2011. The 747-8s, with a payload of nearly 130 tonnes, will be used almost exclusively on routes between Hong Kong and North America.

Cathay Pacific currently has 21 wide-bodied freighters in its fleet, but two Boeing 747-400BCFs will be sold to the airline's cargo joint venture with Air China, while one or two more will be dry-leased to all-cargo subsidiary Air Hong Kong. Following the arrival of the new purchases and the departure of the BCFs, Cathay Pacific's freighter fleet will number up to 35 aircraft by 2016.

With the latest purchases, Cathay Pacific now has a total of 97 new aircraft, including 79 wide-body passenger and 18 freighter aircraft, on its books for delivery up to 2019. The value of these aircraft at list prices is almost HK$200 billion. These aircraft on firm order include 28 Boeing 777-300ERs, 19 Airbus A330s, 32 Airbus A350-900s, 10 Boeing 747-8Fs and eight Boeing 777-200Fs.

"Along with its investment in new aircraft, Cathay Pacific is making a number of other major investments that will strengthen further Hong Kong's role as a leading passenger and cargo hub,'' he said.

The airline is spending more than HK$1 billion on new products and services, including a new Business Class seat, from now to the end of the decade, and is also building a HK$5.5 billion cargo terminal at Hong Kong International Airport which is due to begin operation in early 2013.

 

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