HONG KONG—Cathay Pacific Airways Ltd. said Friday it agreed to buy six Airbus aircraft with a total catalog price of US$1.63 billion as part of its expansion plans, despite a weakening global economy.
The Hong Kong-based blue-chip airline, which is controlled by conglomerate Swire Pacific Ltd., said in a statement it ordered six A350-900 wide-body long-haul aircraft, which will mainly serve destinations in Europe. They are scheduled for delivery between 2016 and 2017.
The deal underscores the carrier's confidence in Asia's aviation market despite the problems the sector now faces, including high fuel costs and fragile consumer confidence because of concerns about the global economy.
Cathay Pacific has been investing heavily to increase its capacity and services as it competes with other carriers in the region. Last year it announced plans to buy 14 Boeing 777-300 extended range passenger aircraft and eight Boeing 777-200 freighters as well as 15 Airbus A330s and two Airbus A350-900s.
The airline didn't disclose the actual cost of the deal announced Friday, but it said Airbus, a unit of European Aeronautic Defence & Space Co., had granted it "significant price concessions." Airlines usually receive discounts from manufacturers for large aircraft orders.
Before the latest deal, Cathay Pacific had more than 90 aircraft on order for delivery through 2019, with a list price of around 180 billion Hong Kong dollars (US$23.2 billion), including 36 Airbus A350-900s be delivered from 2016 to 2019. It also has two A350-900 on 12-year operating leases.
The company said it would fund the transaction with commercial bank loans, other debt instruments and internal cash resources.
source: http://online.wsj.com/article/SB10001424052970204616504577172220488488452.html
The Hong Kong-based blue-chip airline, which is controlled by conglomerate Swire Pacific Ltd., said in a statement it ordered six A350-900 wide-body long-haul aircraft, which will mainly serve destinations in Europe. They are scheduled for delivery between 2016 and 2017.
The deal underscores the carrier's confidence in Asia's aviation market despite the problems the sector now faces, including high fuel costs and fragile consumer confidence because of concerns about the global economy.
Cathay Pacific has been investing heavily to increase its capacity and services as it competes with other carriers in the region. Last year it announced plans to buy 14 Boeing 777-300 extended range passenger aircraft and eight Boeing 777-200 freighters as well as 15 Airbus A330s and two Airbus A350-900s.
The airline didn't disclose the actual cost of the deal announced Friday, but it said Airbus, a unit of European Aeronautic Defence & Space Co., had granted it "significant price concessions." Airlines usually receive discounts from manufacturers for large aircraft orders.
Before the latest deal, Cathay Pacific had more than 90 aircraft on order for delivery through 2019, with a list price of around 180 billion Hong Kong dollars (US$23.2 billion), including 36 Airbus A350-900s be delivered from 2016 to 2019. It also has two A350-900 on 12-year operating leases.
The company said it would fund the transaction with commercial bank loans, other debt instruments and internal cash resources.
source: http://online.wsj.com/article/SB10001424052970204616504577172220488488452.html
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