Airline News - Cathy Pacific Orders

Meanwhile, despite an increase in turnover, Cathay’s profit for the first six months of the year slipped 58.9 percent, compared with the same period in 2010, falling to HK$2.81 billion. Cathay attributes the drop to increased fuel prices and rising operational costs. Fuel expenditure, the group’s biggest single cost, rose by 49.5 percent to HK$6.46 billion.

2nd Sep 2011


 Airline News - Cathay Pacific orders 12 Boeing 777s

Cathay Pacific has entered into an agreement with Boeing for the acquisition of four 777-300ER widebody twinjets and eight 777-200 freighters.

Delivery is slated for June 2013 through to October 2016 and Cathay has opted for General Electric GE90 engines.

The Hong Kong-based airline currently operates 22 777-300ERs on its key long-haul routes and with the latest order will have outstanding orders for another 28. Cathay will retire 21 ageing 747-400s and 13 Airbus A340-300 jetliners before the end of the decade as it takes delivery of new-generation aircraft.

The 777-200F will be a new aircraft type for Cathay. The aircraft will be used to expand the company’s cargo fleet and replace the older 747-400BCF converted freighters.

The carrier now operates 21 widebody freighters. Two 747-400BCFs will be sold to the airline’s cargo joint venture with Air China, following the earlier sale of another two. One freighter will be dry-leased to Cathay’s Air Hong Kong unit.

Cathay’s freighter fleet is expected to number 35 by 2016. The airline is investing HK$5.5 billion (US$706 million) to build a cargo terminal at Hong Kong International Airport, which is expected to be operational in 2013.

Meanwhile, despite an increase in turnover, Cathay’s profit for the first six months of the year slipped 58.9 percent, compared with the same period in 2010, falling to HK$2.81 billion. Cathay attributes the drop to increased fuel prices and rising operational costs. Fuel expenditure, the group’s biggest single cost, rose by 49.5 percent to HK$6.46 billion.

Revenue jumped 13.2 percent to HK$46.79 billion with passenger revenue accounted for HK$31.77 billion, an increase of 15.9 percent. Capacity increased 9.8 percent with Cathay and Dragon Air carrying 13.2 million passengers.

The Japanese earthquake and tsunami in March significantly hurt the group’s most important market. Cathay said that in June it saw some recovery on routes to Japan, but this was traffic remains below pre-earthquake levels. Also in June, the carrier introduced flights to Abu Dhabi and plans to launch services to Chicago in September.

The carrier took delivery of six new aircraft during the first half, with another eight to be delivered by the end of this year.

Cathay Chairman Christopher Pratt says that, despite the uncertainty and challenges ahead, the carrier remains confident of its position and the ability to compete in the market.

 


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